Lok Sabha Question No. 2708 (UNSTARRED), answered on 2015-12-15
Subject: Crop Insurance
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: KONDA VISHWESHWAR REDDY, KALIKESH NARAYAN SINGH DEO, MUTHAMSETTI SRINIVASA RAO (AVNTHI), KIRTI (JHA) AZAD

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

## LOK  SABHA UNSTARRED QUESTION NO.2708

TO BE ANSWERED ON THE 15 TH   DECEMBER, 2015

## CROP INSURANCE

2708.      SHRI KONDA VISHWESHWAR REDDY: SHRI KALIKESH N. SINGH DEO: SHRI MUTHAMSETTI SRINIVASA RAO (AVANTHI): SHRI KIRTI AZAD:

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

- (a) the details of the total agricultural crop output in the country which is insurable and the quantum  of  agricultural  crop  which  has  been  insured  under  the  crop  insurance  schemes  at present;
- (b) whether it is a fact that the premium rates under the National Crop Insurance Scheme are high thus making the scheme unaffordable for small farmers, if so, the steps taken by the Government to reduce the premium rates for farmers;
- (c) the  details  of  the  amount  of  premium  received vis-a-vis claims  paid  under  all  crop insurance schemes during the last three years and the current year, year-wise, till date;
- (d) whether there is a discrepancy in credit release by the banks under the scheme, wherein more money is disbursed during Kharif season and less credit is released during Rabi season, if so, the reasons therefor;
- (e) whether  the  Union  Government  has  received  various  complaints  from  farmers  about non-payment  of  compensation  in  the  event  of  natural  calamities  under  the  crop  insurance schemes; and
- (f) the  steps  taken  by  the  Government  to  provide  adequate  compensation  to  the  farmers under the various crop insurance schemes?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ षि एवं ककसान कल्याण मंत्राऱय में राज्य मंत्री (SHRI  MOHANBHAI  KUNDARIA)

- (a): Crop  Insurance  schemes  envisages  coverage  of  food,  oilseeds  and  commercial/ horticultural crops for which past yield data and weather data is available for requisite number of years. Therefore, all the aforesaid crops are insurable under crop insurance schemes. However, the  total  value  of  the  crop  (sum  insured)  depends  on  notification  of  areas/crops  by  the  State Governments. During 2014-15 a sum of Rs.8141627.1 lakh has been insured under different Government sponsored crop insurance schemes.

(b): No, Madam. Nominal rates of premium ranging between 1.5%  to 3.5% of sum insured are charged for food & oilseeds crops under National Agricultural Insurance Scheme (NAIS), which are much less than the actuarial premium rates. However, actuarial premium rates are charged for annual commercial/horticultural  crops  and  higher  sum  insured/indemnity  level  for food & oilseeds crops. 10% subsidy  in premium is being provided to small & marginal farmers.

- (c): Details of premium received and claims paid during last three years under various crop insurance are at Annexure .
- (d): No, Madam. There is no discrepancy in credit release by the banks. However, due to the reasons like  renewal  of  credit  limit  in  the  beginning  of  financial  year  for  whole  year  i.e.  both Kharif  &  Rabi  seasons,  liberty  to  farmers  to  withdraw  annual  sanctioned  limit  of  Kisan  Credit Cards  any  time  in  the  financial  year,  relatively  higher  investment  during  Kharif  season  etc., disbursement of credit is higher during Kharif seasons.
- (e): No,  Madam.  However,  some  complaints  about  non-payment  and  delayed  payment  of claims;  under  payment  of  claims  on  account  of  incorrect/delayed  submission  of  insurance proposals  by  banks;  unrealistic  assessment  of  crop  loss  due  to  large  unit  area  of  insurance; delay in providing Government share of funds etc., have been received in the past. As far as possible, all the complaints have been suitably addressed by the Insurer and the Ministry.
- (f): Under Crop Insurance Scheme, the admissible claims to the farmers are calculated as per the stipulated provisions of the respective scheme. However, the farmer has the option to insure their crop up to 150% of average yield.

## ALL SCHEMES-NAIS (AIC) AND MNAIS & (WBCIS) (ALL COMPANIES COMBINED)

(Rs. in Lakh)

|               |               | NAIS        | NAIS      | NAIS      | MNAIS       | MNAIS     | MNAIS     | WBCIS       | WBCIS     | WBCIS    | ALL SCHEMES   | ALL SCHEMES   | ALL SCHEMES   |
|---------------|---------------|-------------|-----------|-----------|-------------|-----------|-----------|-------------|-----------|----------|---------------|---------------|---------------|
| Year          | Season        | SUM INSURED | PREMIUM   | CLAIMS    | SUM INSURED | PREMIUM   | CLAIMS    | SUM INSURED | PREMIUM   | CLAIMS   | Total SI      | Total Premium | Total Claims  |
|               | Kh 12         | 2719906.1   | 87874.18  | 278579.4  | 489695.03   | 56432.04  | 62345.36  | 1287053.2   | 129474.13 | 87611.88 | 4496654.3     | 273780.35     | 428536.64     |
|               | Rb12- 13      | 1571008.1   | 44769.98  | 205254.95 | 207714.72   | 18929.86  | 5361.55   | 1073320.8   | 92949.22  | 106081.7 | 2852043.6     | 156649.06     | 316698.22     |
| 2012-13 Total | 2012-13 Total | 4290914.1   | 132644.16 | 483834.36 | 697409.75   | 75361.9   | 67706.91  | 2360374     | 222423.35 | 193693.6 | 7348697.8     | 430429.41     | 745234.85     |
|               | Kh 13         | 2900503.5   | 97772.4   | 310040.64 | 582563.26   | 64022.77  | 85469.75  | 1462352.9   | 147030.11 | 119578.7 | 4945419.7     | 308825.27     | 515089.07     |
|               | Rb13- 14      | 1255176.4   | 29751.67  | 104361.26 | 640660.85   | 43444.51  | 52757.48  | 1089833.4   | 92337.83  | 81685.26 | 2985670.7     | 165534        | 238803.99     |
| 2013-14 Total | 2013-14 Total | 4155679.9   | 127524.07 | 414401.9  | 1223224.11  | 107467.28 | 138227.22 | 2552186.3   | 239367.93 | 201263.9 | 7931090.3     | 474359.28     | 753893.06     |
|               | Kh 14         | 2438783.8   | 84465.83  | 291980.82 | 948118.35   | 94104.77  | 61780.69  | 1325182.3   | 156563.4  | 123574.5 | 4712084.4     | 335134.01     | 477335.98     |
|               | Rb14- 15      | 2079637.2   | 52799.76  | 162162.44 | 909779.42   | 50267.9   | 79981.56  | 440126.1    | 55838.99  | 80211.46 | 3429542.7     | 158906.65     | 322355.47     |
| 2014-15 Total | 2014-15 Total | 4518420.9   | 137265.59 | 454143.26 | 1857897.77  | 144372.67 | 141762.26 | 1765308.4   | 212402.39 | 203785.9 | 8141627.1     | 494040.66     | 799691.45     |

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