Lok Sabha Question No. 203 (STARRED), answered on 2024-08-06
Subject: Crop Insurance Benefits
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Virendra Singh

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

## LOK SABHA

## STARRED QUESTION NO. 203 TO BE ANSWERED ON THE 06 TH  AUGUST, 2024

## CROP INSURANCE BENEFITS

*203.   SHRI VIRENDRA SINGH:

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

(a) whether the farmers in the country are unable to avail the benefits of crop insurance in an easy manner due to its complex procedures and if so, the details thereof;

(b) the amount of funds provided by the Government to the Crop Insurance Companies during the last ten years;

(c) the funds received by the farmers as insurance claim benefit as compared to the funds released in this regard, year-wise;

(d) whether the Government proposes to simplify the rules for crop insurance in the interest of farmers and if so, the details thereof;

(e) whether the Government proposes to form a Committee of experts in this regard and receive suggestions from them; and

(f) if so, the time by which the Committee is likely to be constituted and if not, the reasons therefor?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी (SHRI SHIVRAJ SINGH CHOUHAN)

(a) to (f) : A statement is laid on the Table of the House.

## STATEMENT REFERRED TO PART (a) TO (f) OF LOK SABHA STARRED QUESTION NO.  203  FOR  ANSWER ON 6 TH   AUGUST,  2024   REGARDING  CROP INSURANCE BENEFITS.

(a): No  Sir.  Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY)  is  a  simple  scheme  for farmers.   As a result of the steps taken by the Government, the scheme has been made farmer friendly and affordable, which is visible in the high off-take of the scheme during 2023-24.      In fact, the area and farmers' coverage under the scheme is at all-time high. The State Governments have a major role in implementation of the scheme and the Central Government's role is mainly limited to policy making.  However,  Central Government has taken following steps to make the scheme more farmer friendly :

(i) DigiClaim: Earlier it was difficult to track the claim settlement as the claims were settled by the insurance companies.  In order to rigorously track/monitor the claim settlement / disbursal process end to end, a dedicated module namely 'Digiclaim Module' has been operationalized for calculation and payment of claims from Kharif 2022 onwards. Under this module claims are worked out and settled/disbursed by  integration of National Crop Insurance Portal (NCIP) with Public Finance Management System (PFMS) and accounting system of Insurance Companies to provide timely & transparent processing of all claims. As per provisions of the scheme, 12% penalty is required to be paid by the insurance companies to farmers for late disbursal of claims, for which a penalty module has also been developed to calculate the penalty automatically w.e.f. Kharif 2024 season.

Due to the implementation of Digiclaim Module, turn-around-time for settlement/disbursal  of claims has decreased substantially.

(iii) Krishi Rakshak Portal and Helpline : To  further  improve  the grievance redressal mechanism already available under the scheme, Krishi Rakshak Portal and Helpline has been developed.  A single Pan-India toll free number 14447 has been deployed and linked to the insurance companies' database, where farmers can raise their grievances/issues. Turn around Time (TAT) for the ticket is 0-3 days for Insurance Companies user, 4-7 days for Head Office user, 8-12 days for Head Office Admin, 13-15 for CGRO and above 15 days,  it  is  escalated  to  Bima  Bharosa  Portal  of  IRDAI  after  15  days  for  resolution  & escalation to highest level. All grievances at each level of escalation are visible to District, State and Government of India user.  This has also helped the Central Govt. and State Governments to monitor the grievances of stakeholders at a unified platform.  Till date 4.9 lakh calls have been received on KRPH.  Out of these 1.90 lakh issues related e-tickets were generated and forwarded for action to the insurance companies.  Rest of the issues were either informatory or seeking advisory.  Out of the 1.90 lakh issue related E-tickets generated, 1.83 lakh (96%) have been resolved.

(iii) Meri  Policy  Mere  Haath  Campaign (MPMH) :  Government  has  also  organized  a nationwide Doorstep Crop Insurance Policy receipt distribution mega drive namely, 'Meri Policy Mere Haath'. Hard copies of crop insurance policy receipts are distributed to farmers enrolled  under  PMFBY  through  special  camps  at  gram  Panchayat/village  level.  All implementing  State/UT Governments  along  with  respective  insurance  companies  have been organizing Gram Panchayat level mega policy distribution drive alongwith Fasal Bima Pathshalas to educate the farmers on PMFBY.   Over 10 crore policy receipts have been issued under MPMH campaign till date including over 3 crore policy receipts during Rabi 2023-24 season.  Till date 4,57,967 fasal bima pathshalas have been organized covering about 3.47 crore farmers.

It is also a fact that farmers are now subscribing to the scheme voluntarily.  The coverage of non-loanee farmers, who enrolled in the scheme in 2023-24, was 55% of all insured farmers.

(b) & (c): Details  of  Central  Government  premium  subsidy  provided  to  insurance companies and claims paid to farmers since inception of the scheme i.e. 2016-17 till 202223 are given below :

| Year    | Central Govt. share in Premium subsidy (Rs. In Crore)   | Claims paid (Rs. in crore)   |
|---------|---------------------------------------------------------|------------------------------|
| 2016-17 | 8,652                                                   | 16,809                       |
| 2017-18 | 10,103                                                  | 22,186                       |
| 2018-19 | 12,311                                                  | 29,443                       |
| 2019-20 | 13,523                                                  | 27,801                       |
| 2020-21 | 13,022                                                  | 21,222                       |
| 2021-22 | 12,422                                                  | 20,586                       |
| 2022-23 | 12,411                                                  | 18,065                       |
| Total   | 82,444                                                  | 1,56,114                     |

- (d) to (f): The review/revisions  /  improvements  in  the  crop  insurance  schemes  is  a continuous process and decision on suggestion/ representations/ recommendations of the stakeholders/studies are taken from time to time.  Based on the experience gained, views of various stakeholders, to ensure better transparency, accountability, timely payment of claims  to  the  farmers  and  to  make the  scheme  more  farmer friendly,  Government  has periodically revised the Operational Guidelines of the PMFBY comprehensively in 2018, 2020 and 2023.  There is no proposal, at present for constituting a Committee of Experts for simplification of rules of crop insurance.

*****