Lok Sabha Question No. 260 (STARRED), answered on 2016-03-15
Subject: Crop Insurance
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: SATISH CHANDRA DUBEY

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

## LOK  SABHA STARRED QUESTION NO. 260

TO BE ANSWERED ON THE 15 TH  MARCH, 2016

## CROP INSURANCE

- *260.     SHRI SATISH CHANDRA DUBEY:

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

- (a) whether it is a  fact  that  less  than  20  per  cent  farmers  go  in  for  crop  insurance  in India, while the vast majority is exposed to the vagaries of weather which often leads them to take desperate steps;
- (b) if so, the steps taken by the Government to popularize crop insurance schemes and to encourage farmers to insure their crops; and
- (c) whether the Government has introduced any new scheme especially for the benefit of small and marginal farmers and if so, the details thereof?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी

(SHRI RADHA MOHAN SINGH)

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

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (c)  OF  LOK  SABHA STARRED QUESTION NO.  260  DUE FOR REPLY ON 15 TH  MARCH, 2016.

(a) to (c): Yes, Madam.   Continued efforts are being made to make the schemes more  beneficial  and  effective  for  farmers  by  reviewing  them  from  time  to  time  and incorporating  of farmer friendly features. Concerned agencies of State Governments in coordination with the insurance companies create awareness among farmers through publicity of Crop Insurance Schemes.  The salient activities under awareness campaign include publicity of benefits of the scheme  through advertisements in leading National/local News  Papers,  telecast through audio-visual media, distribution of pamphlets,  participation  in  agriculture  fairs  /  melas  /  ghosti  and  organization  of workshops / trainings and sending SMSes through Kisan Portal etc.  A new portal of Crop insurance has also been launched through which farmers can find out about the crops  notified  for  insurance  as  well  as  the  applicable  premium  rates  etc.  in  their respective areas.  Besides, Government of India also does wide publicity of the Crop Insurance Schemes through print media, electronic media, conferences, workshops etc.

Based on the review of existing crop insurance scheme, Government of India has approved  the  Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY)  which  would  replace  the existing schemes of National Agricultural Insurance Scheme (NAIS) & Modified National Agricultural Insurance Scheme (MNAIS) from ensuing Kharif 2016.   Farmer's share  in Premium  (including  small  &  marginal  farmers)  has  been  reduced  to  a  maximum  of 1.5%,  2%  and  5%  in  respect  of  Rabi  crops,    Kharif  crops  and  annual  commercial/ horticultural crops respectively.  Salient features of the scheme are Annexed .

Premium rates payable by farmers, selection of insurance company & administrative  and  operational  structure  of  Weather  Based  Crop  Insurance  Scheme (WBCIS) have also been rationalized and brought at par with PMFBY.

In  addition,  a  Unified  Package  Insurance  Scheme  (UPIS)  has  also  been approved for implementation on pilot basis in 45 districts of the country from Kharif 2016 season  to  cover  the  other  assets/activities  like  machinery,    life,  accident,  house  and student-safety for farmers alongwith their notified crops (under PMFBY/ Weather Based Crop Insurance Scheme - WBCIS).

The new scheme also envisages intensive publicity for awareness of the scheme alongwith training/sensitization programmes of the States/bank officials for increase in coverage under crop insurance.

## Salient Features of PMFBY

- i) Provide comprehensive insurance coverage against crop loss on account of non-preventable natural  risks,  thus  helping  in  stabilising  the  income  of  the  farmers  and  encourage  them  for adoption of innovative practices.
2. ii) Increase the risk coverage of Crop cycle - pre-sowing to post-harvest losses.
3. iii) Area approach for settlement of claims for widespread damage. Notified Insurance unit has been reduced to Village/Village Panchayat  for major crops
4. iv) Uniform  maximum  premium  of  only  2%,  1.5%  and  5%  to  be  paid  by  farmers  for  all  Kharif crops, Rabi Crops and Commercial/ horticultural crops respectively.
- v) The difference between premium and the rate of Insurance charges payable by farmers shall be provided as subsidy and shared equally by the Centre and State.
6. vi) Uniform seasonality discipline & Sum Insured  for both loanee & non-loanee farmers
7. vii) Removal of the provision of capping on premium and reduction of sum insured to facilitate farmers to get claim against full sum insured without any reduction.
8. viii) Inundation  has  been  incorporated  as a  localized  calamity  in  addition  to  hailstorm  and landslide for individual farm level assessment.
9. ix) Provision of individual farm level assessment for Post harvest losses against the cyclonic & unseasonal rains for the crops kept in the field for drying upto a period of 14 days, throughout the country.
- x) Provision of claims upto 25% of sum insured for prevented sowing.
11. xi) 'On-Account payment' upto 25% of sum insured for mid season adversity, if the crop damage is  reported more than 50% in the insurance unit.  Remaining claims based on Crop Cutting Experiments (CCEs) data.
12. xii) For more effective implementation, a cluster approach will be adopted under which a group of districts with variable risk profile will be allotted to an insurance company through bidding for a longer duration upto 3 years.
13. xiii) Use  of  Remote  Sensing  Technology,  Smartphones  &  Drones  for  quick  estimation  of  crop losses to ensure early settlement of claims.
14. xiv) Crop Insurance Portal has been launched.  This will be used extensively for ensuring better administration, co-ordination, transparency and dissemination of information.
15. xv) Focused attention on increasing awareness about the schemes among all stakeholders and appropriate provisioning of resources for the same.
16. xvi) The claim amount will be credited electronically to the individual farmer's Bank Account
17. xvii) Adequate publicity in  all the villages of the notified districts/ areas
18. xviii) Premium  rates  under  Weather  Based  Crop  Insurance  Scheme  (WBCIS)  have  also  been reduced  and  brought  at  par  with  new  scheme.  Further,  capping  on  Actuarial  premium  and reduction in sum insured has been removed in this scheme also.