Lok Sabha Question No. 1969 (UNSTARRED), answered on 2025-03-11
Subject: Performance of PMFBY in Karnataka
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Dr. K Sudhakar

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION NO. 1969

TO BE ANSWERED ON THE 11 TH  MARCH, 2025

## PERFORMANCE OF PMFBY IN KARNATAKA

1969. DR. K SUDHAKAR:

Will the Minister of AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी be pleased to state:

- (a) the total amount of claims disbursed by the insurance companies under the Pradhan Mantri Fasal Bima Yojana (PMFBY) in the country including for the State of Karnataka;
- (b) whether there is any delay with respect to settlement of claims under PMFBY for farmers and if so, the details thereof;
- (c) whether there is any proposal under consideration to reduce the premium component of farmers under PMFBY and if so, the details thereof;
- (d) the details of benefits under the said Yojana for the farmers of Chikkaballapur district of Karnataka;
- (e) the details of steps taken to extend the scheme to other sectors such as floriculture and dairy sectors; and
- (f)  the  details  of  existing  insurance  schemes for the floriculture sector  and the  details  of farmers enrolled under the same for Chikkaballapur district?

## ANSWER

THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण राǛ मंũी (SHRI RAMNATH THAKUR)

(a) & (b) :  Since inception of Pradhan Mantri Fasal Bima Yojana (PMFBY) in 2016-17 till 2023-24, as on 31.01.2025, total claims of Rs. 1,73,609 crore have been paid to 19.68 crore farmer applications in the country including Karnataka State.

Majority of the claims are settled  within the stipulated timelines under the Operational Guidelines of the scheme by the insurance companies.  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, non-deployment  of  sufficient personnel by insurance companies etc.,  were received in the past which were suitably addressed as per provisions of the scheme.

Since the scheme is implemented by the State Government, therefore, in order to resolve  the  grievances/complaints  including  those  related  to  claims  of  insured  farmers, provision  of  Stratified  Grievance  Redressal  Mechanism  viz.  District  Level  Grievance Redressal Committee (DGRC), State Level Grievance Redressal Committee (SGRC) has been made in the Revised Operational Guidelines of the Scheme.    These committees have been given the detailed mandate as outlined in the Operational Guidelines for hearing the complaints/ grievances   and to dispose them as per the stipulated procedure.

(c)  :  The  actuarial/bidded  premium  rates  are  charged  by  implementing  agencies  under PMFBY.  Extremely low premium rate across the country for the season is charged from the famers, which is  maximum 2% of sum insured for Kharif crops, maximum 1.5% of sum insured for Rabi crops and maximum 5% of sum insured for commercial/horticultural crops. Remaining part of actuarial premium is shared by the Central and State Government on 50:50 basis except North Eastern States (from Kharif 2020) and Himalayan States (from Kharif 2023) where it is shared in the ratio of 90:10.  Further, Operational guidelines of the scheme further provide for 3 Alternate Risk Transfer models other than standard PMFBY, namely cup and cap model (80:110), cup and cap model (60:130) and profit and loss sharing model. States have been given the flexibility to choose any one of these models. At present, no proposal to revise the premium structure under the scheme is under consideration of the Government.

(d) :  The PMFBY, introduced in the country from Kharif 2016 season is voluntary for States as well as  farmers.   Comprehensive risk coverage for crops of  farmers  against all nonpreventable natural risks from pre-sowing to post-harvest stages of crops at very minimum premium for the farmers is provided under the scheme.   The provisions/benefits of the scheme are applicable to willing farmers in areas notified by State Governments.

(e) & (f) :  The PMFBY envisages coverage of all food crops  (cereals, millets and pulses), oilseeds  and  commercial/horticultural  crops  subject  to  availability  of  past  yield  data  of requisite number of years based on Crop Cutting Experiments  (CCEs)  as well as capacity of the State Government to conduct requisite number of CCEs to assess the yield of the crop  to  calculate  claims.   However,  specific  crop  is  notified  by  the  concerned  State Government  keeping  in  view  the  aforesaid  provision.    For  the  crops  not  meeting  the aforesaid conditions, the concerned State Government is free to notify them for coverage under  Restructured  Weather  Based  Crop  Insurance  Scheme   (RWBCIS)   under  which claims payment are being structured on the basis of weather index parameters.

Floriculture and dairy farming are not covered under PMFBY.   As informed by the State Government of Karnataka, at present, there is no insurance scheme for floriculture sector in Chikkaballapur district.

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