Lok Sabha Question No. 2489 (UNSTARRED), answered on 2024-12-10
Subject: Determining Crop Loss to pay Insurance Money
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Smt. Aparajita Sarangi

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

## LOK SABHA UNSTARRED QUESTION NO. 2489

TO BE ANSWERED ON THE 10 TH  DECEMBER, 2024

## DETERMINING CROP LOSS TO PAY INSURANCE MONEY

2489. SMT. APARAJITA SARANGI:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ͪष एवं ͩकसान कãयाण मंğी be pleased to state:

- (a) the details of the procedure of determining crop loss to pay insurance money to the farmers;

(b) whether there are any guidelines from the Union Government that Gram Panchayat will be the unit for determining crop loss, if so, the details thereof;

(c) if so, the reasons for individual farmers paying premium towards crop for each type and plot of crop, if not, the details of the Government role;

(d) whether the Government is aware that plots with very good yield are predetermined for crop cutting; and

- (e) the details of the authority authorized to determine such plots and the manner in which the plots are selected?

## ANSWER

THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE कृ ͪष एवं ͩकसान कãयाण राÏय मंğी (SHRI RAMNATH THAKUR)

- (a) to (c) :  Pradhan Mantri Fasal Bima Yojana (PMFBY) is mainly implemented on 'Area Approach' basis and comprehensive risk coverage for crops of farmers against all nonpreventable natural risks from pre-sowing to post-harvest stages of the crops at subsidised premium for the farmers is provided under the scheme.  Admissible claims are worked out and  paid  directly  to  the  insured  farmer's  account  by  the  insurance  companies  through Digiclaim module on National Crop Insurance Portal based on the yield data per unit area furnished  to  the  insurance  company  by  the  concerned  State  Government  and  claim calculation formula given below :

(Actual Yield - Threshold Yield)       X  Sum Insured Threshold Yield

However,  losses  due  to  localized  risks  of  hailstorm,  landslide,  inundation,  cloud burst & natural fire and post-harvest losses due to cyclone, cyclonic/unseasonal rains & hailstorms are calculated on individual insured farm basis.     These claims are assessed by  a  joint  committee  comprising  representatives  of  State  Government  and  concerned insurance company. As per provisions of the scheme, notified insurance unit is Gram/Gram Panchayat for  major  crops.  The  major  crops  have  been  defined  in  the  Operational  Guidelines  of PMFBY as the crop whose sown area is atleast 25% of the gross cropped area in the district/taluka or equivalent level.  For other crops, insurance unit are may be higher than the Gram/Gram panchayat as decided by the State Government concerned.

Under the scheme, farmer's share in premium has been capped at 2% during Kharif season  and 1.5% for Rabi season for food and oilseed crops and 5% for commercial/ horticultural crops (both Kharif & Rabi Seasons).  Remaining share of premium is shared by the Central and State Government on 50 : 50 basis except for North Eastern States & Himalayan States, where it is shared in the ratio of 90 : 10 with certain conditions.    Some States have also decided to share farmer's share of premium from State budget.

(d) & (e) : The PMFBY is mainly designed to adopt 'Area Approach' for settlement of claims based on Area-yield data arrived from the requisite number of Crop Cutting Experiments (CCEs), being conducted at the farms of individual farmers selected on random sampling method  under  General  Crop  Estimation  Survey  (GCES)  by  the  concerned  State Government.      However,  to  overcome  the  difficulties  in  conduct  of  manual  CCEs, technology-based  yield  estimations  mechanism  namely, YES-Tech  (Yield  Estimation based on Technology) ,  has  been introduced under PMFBY from Kharif 2023 season. Under  this,  Yield  estimation  is  done  with  data  inputs  from    Remote  Sensing  indices, Weather indices, crop phenological information, soil types etc. using approved Technologies & Approaches finalized for Paddy, Wheat and Soybean crops.

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