Lok Sabha Question No. 1608 (UNSTARRED), answered on 2016-05-03
Subject: Implementation of Crop Insurance Scheme
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: CHANDRA PRAKASH JOSHI, PARAYAMPARANBIL KUTTAPPAN BIJU

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

## LOK  SABHA UNSTARRED QUESTION NO.1608

TO BE ANSWERED ON THE  3 RD  MAY, 2016

## IMPLEMENTATION OF CROP INSURANCE SCHEME

1608.     SHRI CHANDRA PRAKASH JOSHI: SHRI P.K. BIJU:

Will the Minister of AGRICULTURE AND FARMERS WELFARE ‡ãðŠãäÓã एवं किसान िल्याण ½ãâ¨ããè be pleased to state:

- (a) whether  many  hurdles  have  surfaced  in  the  implementation  of  crop  insurance scheme, if so, the details thereof and the corrective action taken thereon;
- (b) whether the Government is aware that some insurance companies are involved in frauds against the farmers in the name of crop insurance across the country;
- (c) if so, the details thereof along with the corrective steps taken by the Government in this regard;
- (d) whether the Government is considering to make a new law to protect the farmers from these insurance companies; and
- (e) if  so,  the  details  thereof  along  with  the  steps  taken  by  the  Government  to implement these crop insurances schemes properly in the entire country?

## ANSWER

MINISTER OF  STATE IN THE  MINISTRY OF  AGRICULTURE AND  FARMERS  WELFARE

‡ãðŠãäÓã एवं किसान िल्याण ½ãâ¨ããÊã¾ã ½ãñâ Àã·¾ã ½ãâ¨ããè ( SHRI MOHANBHAI KUNDARIYA )

- (a): Yes, Madam.  The major issues identified in the existing crop insurance schemes were high premium rates to be paid by farmers, different premium rates in neighbouring districts, capping on premium resulting in reduction in sum insured and lesser claims for farmers,  delay  in  settlement  of  claims,  less  use  of  improved  technologies  etc.    After detailed discussion with various stakeholder, Government  of  India has  recently approved  Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY)  which  replaced  the  existing schemes  of  National  Agricultural  Insurance  Scheme  (NAIS)  &  Modified  National Agricultural  Insurance  Scheme  (MNAIS) from  ensuing  Kharif 2016  season.   Premium rates under Weather Based Crop Insurance Scheme (WBCIS) have also been reduced and brought at par with PMFBY scheme.   Salient features of PMFBY are annexed .

In  addition,  a  Unified  Package  Insurance  Scheme  (UPIS)  has  also  been approved for implementation on pilot basis in selected 45 districts of the country from ensuing  Kharif  2016  season  to  cover  the  other  assets/activities  like  machinery,  life, accident, house, student-safety, besides crops of the farmers.

(b) & (c): 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.      State  Level  Coordination  Committees  on  Crop  Insurance (SLCCCI) have been overseeing & monitoring the implementation of the scheme.

(d) : No Madam.

(e): In view of (d) above, question of details does not arise.  However, Government has taken various steps like regular review of the crop insurance scheme,   introduction of a new simplified and easily understandable  -  Pradhan Mantri Fasal Bima Yojana for farmers and  other stakeholders;  use of advanced technology including Smartphone app  for  conduction  &  transmission  of  data/information  of  Crop  Cutting  Experiments (CCEs),  use of Drones for estimation of crop losses, development of crop  insurance portal for better administration, coordination and transparency between various stakeholders, special awareness & capacity development programmes etc. for proper implementation of the schemes.

## Salient Features of PMFBY

- i) Provide  comprehensive  insurance  coverage  against  crop  loss  on  account  of  nonpreventable  natural  risks,  thus  helping  in  stabilizing  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.

## Annexure

- xvi) The claim amount will be credited electronically to the individual farmer's Bank Account
- xvii) Adequate publicity in  all the villages of the notified districts/ areas
- 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.
- xix) 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).

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