Lok Sabha Question No. 1399 (UNSTARRED), answered on 2016-05-03
Subject: Revamping of Crop Insurance Schemes
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: KOTHA PRABHAKAR REDDY

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

## LOK  SABHA UNSTARRED QUESTION NO.1399

TO BE ANSWERED ON THE 3 RD  MAY, 2016

## REVAMPING OF CROP INSURANCE SCHEMES

## 1399.      SHRI PRABHAKAR REDDY KOTHA:

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

- (a) whether  it  is  true  that  the  Government  is  considering  to  revamp  the  Crop  Insurance Scheme stressing the need to make it more advantageous to the farmers and if so, the details thereof;
- (b) the details of the precautions taken by the Government to make the scheme effective in shielding the farmers from the  burden   of premiums and crop losses;
- (c) whether abnormal delays are taking place in settlement of claims of farmers; and
- (d) if so, the remedial measures taken by the Government for early settlement of claims and avoid losses to the farmers?

## ANSWER

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

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

- (a) & (b): Improvement in crop insurance schemes to make them serve the interests of the farmers better,  is a continuous process and steps are taken in this regard by the Government from  time  to  time.    Accordingly,  Crop  Insurance  Schemes  viz.  National  Crop  Insurance Programme  (NCIP)  with  its  three  component  schemes  viz.  Modified  National  Agricultural Insurance  Scheme  (MNAIS),  Weather  Based  Crop  Insurance  Scheme  (WBCIS)  &  Coconut Palm  Insurance  Scheme  (CPIS)  and  National  Agricultural  Insurance  Scheme  (NAIS)  were comprehensively reviewed and Government  of India has approved the Pradhan Mantri Fasal Bima Yojana (PMFBY) to replace National Agricultural Insurance Scheme (NAIS) & Modified National  Agricultural  Insurance  Scheme  (MNAIS)  from  Kharif  2016.    Premium  rates  under Weather Based Crop Insurance Scheme (WBCIS) have also been reduced and brought at par with new scheme.

To  shield  the  farmers  from  the  burden  of  high  premiums  under  PMFBY  &  WBCIS, farmer's share in premium for food & oilseeds crops has been fixed at maximum 2%  and 1.5% of  sum  insured  for  Kharif  and  Rabi  seasons  respectively.  In  case  of  annual  commercial/ horticultural crops maximum premium is 5%.  The remaining part of the actuarial premium would be shared by the Central and State Governments on 50 : 50 basis.

- (c)  &  (d):    Keeping  in  view  the  delays    in  payment  of  Insurance  claims  in  earlier  schemes, various provisions like  use of advanced technology including Smartphone app for conduction & transmission of data/information of Crop Cutting Experiments (CCEs), use of Drones for smart sampling,  use  of  insurance  portal  for  better  administration,  coordination  and  transparency between  various  stakeholders,  upfront  premium  contribution  etc.  have  been  made  under PMFBY.

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