Lok Sabha Question No. 620 (UNSTARRED), answered on 2024-02-06
Subject: Salient Features and Objectives of PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Nihal Chand Chauhan

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION NO. 620

TO BE ANSWERED ON THE 06 TH  FEBRUARY, 2024

## SALIENT FEATURES AND OBJECTIVES OF PMFBY

620. SHRI NIHAL CHAND:

Will  the  Minister  of  AGRICULTURE  AND  FARMERS  WELFARE क ृ षि एवं षकसान कल्याण मंत्री be pleased to state:

- (a) the salient features and objectives of the Pradhan Mantri Fasal Bima Yojana (PMFBY); (b) the number of farmers who have received the benefits under the said Scheme during the last two years till date State/UT-wise; the details of amount of funds paid under the said Scheme in all the States of
- (c) the country, State/ UT-wise including Rajasthan;
- (d) whether the Government has received complaints from various States of the country including Rajasthan regarding non-payment of insurance amount to farmers by insurance companies/ non-correction of errors in the application, wrong entry of name of revenue villages and other information on the portal; and
- (e) if so, the details thereof and the action taken in this regard?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

क ृ षि एवं षकसान कल्याण मंत्री

(SHRI ARJUN MUNDA)

- (a):  Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY)  aims  at  supporting  sustainable income in crop production, especially in adverse climatic conditions by way of:
-  Providing financial support to farmers suffering crop loss/damage arising out of unforeseen events.
-  Stabilizing the income of farmers to ensure their continuance in farming.
-  Encouraging farmers to adopt innovative and modern agricultural practices.
-  Ensuring credit worthiness of the farmers, crop diversification and enhancing growth  and  competitiveness  of  agriculture  sector  besides  protecting  the farmers from production risks.

## Salient features of the scheme are in Annexure-I .

(b)  &  (c):  State-wise  details  of  number  of  farmer  applications  enrolled  and  claims paid during the last two years i.e. 2021-22 and 2022-23 are given in Annexure-II .

(d)  &  (e):  All  the  major  work  like  selection  of  Insurance  Companies  through transparent  bidding  process,  assessment  of  crop  yield/crop  loss  for  calculation  of admissible claims are being performed by the concerned State Government or Joint Committee  of  State  Government  officials  and  concerned  insurance  company.  The roles  and  responsibilities  of  each  stakeholder  are  defined  in  the  Operational Guidelines of the scheme for the proper execution of the scheme. However, during the implementation of PMFBY, some complaints against insurance companies about non-payment  and/or  delayed  payment  of  claims;  under  payment  of  claims  on account of incorrect/delayed submission of insurance proposals by banks; discrepancy  in  yield  data  &  consequent  disputes  between  State  Government  and insurance  companies,    delay  in  providing  State  Government  share  of  funds,  nondeployment  of  sufficient  personnel  by  insurance  companies  etc.,    have  been received  in  the  past  which  have  been  suitably  addressed  as  per  provisions  of  the scheme.

Further, to better resolve all the grievances/complaints under the  scheme, a Unified  Krishi  Rakshak  Helpline  has  been  developed  recently  to  serve  as  the centralized grievance redressal platform.

## Salient Features of PMFBY

- i)  Provides comprehensive insurance coverage against crop loss on account of non-preventable natural risks, thus helping in stabilizing the income of the farmers and encouraging them for adoption of innovative practices.
2. ii) Increased risk coverage of Crop cycle - pre-sowing to post-harvest losses.
3. iii) Area approach for settlement of claims for widespread damage. Notified Insurance unit has been reduced to Village/Village Panchayat for major crops.
4. iv) Actuarial/bidded  premium  but  uniform  maximum  premium  of  only  2%,  1.5%  and  5%  to  be paid  by  farmers  for  all  Kharif  crops,  Rabi  Crops  and  Commercial/  horticultural  crops respectively.      Premium  over  and  above  these  limits  is  shared  by  the  Central  and  State Governments on 50: 50 basis except in North Eastern Region and Himalayan States where it is 90: 10.
- v) The difference between premium and the rate of Insurance charges payable by farmers is provided as subsidy and shared by the Centre and State, as the ratio mentioned above.
6. vi) Uniform seasonality discipline & Sum Insured for both loanee & non-loanee farmers.
7. vii) Removal of the provision of capping on premium which led to reduction in sum insured to facilitate farmers to get claim against full sum insured without any reduction.
8. viii) Individual  farm  level  assessment  and  settlement  of  claims  for  localized  calamities  of hailstorm, landslide, Inundation, Cloud Burst and Natural Fire and post-harvest losses due to cyclone, cyclonic/unseasonal rains and hailstorm for the crops kept in the field for drying upto a period of 14 days, throughout the country.
9. ix) Provision of claims upto 25% of sum insured for prevented sowing.
- x) 'On-Account payment' upto 25% of sum insured for mid-season adversity if the crop damage is reported more than 50% in the insurance unit.  Remaining claims based on Crop Cutting Experiments (CCEs) data.
11. xi) Introduction of three alternative risk models viz. Profit and Loss Sharing, Cup and Cap (60130), Cup and Cap (80-110) for States, under which if no claim is made then a portion of the premium paid by the state will go into the state treasury itself;
12. xii) Use  of  Remote  Sensing  Technology,  Smartphones  &  Drones  for  quick  estimation  of  crop losses to ensure early settlement of claims. Infusion of improved technology i.e. introduction of    National  Crop  Insurance  Portal  (NCIP),  Yield  Estimation  System  based  on  Technology (YES-TECH), Weather Information Network and Data System (WINDS),  Collection of Real time Observations and Photographs of Crops (CROPIC) etc.
13. xiii) Crop Insurance Portal has been developed for ensuring better administration, co-ordination, transparency,  dissemination  of  information  and  delivery  of  services  including  crediting  the claim amount electronically to the individual farmer's Bank Account.
14. xiv) Focused attention on increasing awareness about the schemes among all stakeholders and appropriate provisioning of resources for the same.
15. xv) Making the scheme voluntary for all farmers instead of compulsory for loanee farmers.

## Annexure-II

## State-wise details of Farmer Applications insured and claims paid during 2021-22 and 2022-23 (As on 31.12.2023)

| State/UT Name    | Farmers Applications Insured (In Lakh)   | Farmers Applications Insured (In Lakh)   | Paid Claims (In Crore)   | Paid Claims (In Crore)   |
|------------------|------------------------------------------|------------------------------------------|--------------------------|--------------------------|
| State/UT Name    | 2021-22                                  | 2022-23                                  | 2021-22                  | 2022-23                  |
| A & N Islands    | 0.01                                     | 0.00                                     | 0.00                     | 0.00                     |
| Andhra Pradesh   | 0.00                                     | 178.84                                   | 0.00                     | 558.22                   |
| Assam            | 9.96                                     | 5.00                                     | 229.05                   | 6.36                     |
| Chhattisgarh     | 58.39                                    | 77.29                                    | 1429.79                  | 509.92                   |
| Goa              | 0.00                                     | 0.00                                     | 0.00                     | 0.00                     |
| Haryana          | 14.53                                    | 14.46                                    | 1698.23                  | 2009.57                  |
| Himachal Pradesh | 2.34                                     | 2.67                                     | 39.89                    | 14.37                    |
| Jammu & Kashmir  | 0.91                                     | 0.92                                     | 56.05                    | 3.50                     |
| Karnataka        | 19.34                                    | 26.45                                    | 1490.83                  | 1468.24                  |
| Kerala           | 0.99                                     | 1.47                                     | 95.18                    | 89.90                    |
| Madhya Pradesh   | 92.67                                    | 177.32                                   | 2907.22                  | 968.84                   |
| Maharashtra      | 99.03                                    | 107.47                                   | 4389.29                  | 3500.23                  |
| Manipur          | 0.03                                     | 0.04                                     | 1.48                     | 1.46                     |
| Meghalaya        | 0.00                                     | 0.00                                     | 0.00                     | 0.00                     |
| Odisha           | 81.74                                    | 80.06                                    | 1041.22                  | 499.70                   |
| Puducherry       | 0.36                                     | 0.31                                     | 0.00                     | 0.00                     |
| Rajasthan        | 344.64                                   | 392.10                                   | 5130.27                  | 3558.85                  |
| Sikkim           | 0.02                                     | 0.05                                     | 0.53                     | 0.00                     |
| Tamil Nadu       | 59.11                                    | 61.60                                    | 817.79                   | 731.35                   |
| Tripura          | 3.36                                     | 3.21                                     | 2.63                     | 0.00                     |
| Uttar Pradesh    | 40.68                                    | 42.57                                    | 956.11                   | 866.00                   |
| Uttarakhand      | 1.83                                     | 2.82                                     | 109.91                   | 182.24                   |
| GRAND TOTAL      | 829.90                                   | 1174.65                                  | 20395.49                 | 14968.76                 |

0.00 : Low coverage as figures are in lakhs or Not Implemented.

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