Lok Sabha Question No. 748 (UNSTARRED), answered on 2016-03-01
Subject: Review of Crop Insurance Schemes
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: SAUGATA ROY

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

## LOK  SABHA UNSTARRED QUESTION NO. 748

TO BE ANSWERED ON THE 1 ST  MARCH, 2016

## REVIEW OF CROP INSURANCE SCHEMES

748.   PROF. SAUGATA ROY:

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

- (a) whether  the  Government  has  recently  reviewed  the  various  Crop  Insurance  Schemes implemented for the benefit of the farmers in the country;
- (b) if so, the outcome thereof, Scheme-wise;
- (c) the deficiencies identified in various schemes and corrective measures taken/proposed to be taken by the Government for proper implementation of the schemes; and
- (d) the details of premium collected from the farmers in each State/UT under various crop insurance schemes during the last one year?

## 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) to (c): Yes  Madam.  Government  has  recently  reviewed  the  existing  crop  insurance schemes  in  consultation  with    various  stakeholders  including  States,  farmer  organisations, insurance companies etc.    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.     Based on the discussions held with stakeholders, Government of India has recently approved 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 season. All the major issues enumerated above have been addressed in the PMFBY.  Salient features of the scheme are at Annexure-I .

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.

- (d): State-wise details of premium collected from farmers  during last one year (i.e. 2014-15) under various crops insurance schemes is at Annexure-II.

## 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 risks 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 Vilalge/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 shared equally by the Centre and State.
6. vi) Uniform seasonality discipline & Sum Insured  for both loanee & non-loanee farmers
7. vii) Removal of 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 for individual farm level assessment for Post harvest losses against the cyclone & unseasonal rains for the crops kept in the field to dry 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 will be reported more than 50%.  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 Insured 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.

Annexure-II State-wise details of premium collected from

## farmers During Last one year (i.e. 2014-15)

| 2014-15       | 2014-15          | 2014-15                     |
|---------------|------------------|-----------------------------|
| ALL COMPANIES | ALL COMPANIES    | ALL COMPANIES               |
| WBCIS         | WBCIS            | WBCIS                       |
| Sl. No        | State / UT       | Farmers' Premium (Rs. Lakh) |
| 1             | Andhra Pradesh   | 2451.29                     |
| 2             | Assam            | 376.92                      |
| 3             | Bihar            | 19133.33                    |
| 4             | Chhattisgarh     | 16756.49                    |
| 5             | Haryana          | 1.71                        |
| 6             | Himachal Pradesh | 1865.88                     |
| 7             | Jammu &Kashmir   | 23.06                       |
| 8             | Jharkhand        | 1973.84                     |
| 9             | Karnataka        | 5828.42                     |
| 10            | Kerala           | 186.23                      |
| 11            | Madhya Pradesh   | 3420.37                     |
| 12            | Maharashtra      | 13585.31                    |
| 13            | Rajasthan        | 24062.69                    |
| 14            | Telangana        | 1015.80                     |
| 15            | Uttar Pradesh    | 2453.56                     |
| 16            | Uttarakhand      | 692.38                      |
| 17            | West Bengal      | 31.23                       |
|               | Total            | 93858.51                    |

| MNAIS   | MNAIS            | MNAIS                       |
|---------|------------------|-----------------------------|
| Sl. No  | State / UT       | Farmers' Premium (Rs. Lakh) |
| 1       | Andhra Pradesh   | 5140.79                     |
| 2       | Andaman &Nicobar | 0.00                        |
| 3       | Bihar            | 3034.83                     |
| 4       | Goa              | 0.52                        |
| 5       | Jharkhand        | 397.44                      |
| 6       | Karnataka        | 8672.82                     |
| 7       | Kerala           | 207.26                      |
| 8       | Rajasthan        | 14971.61                    |
| 9       | Tamil Nadu       | 664.64                      |
| 10      | Telangana        | 9162.39                     |
| 11      | Uttar Pradesh    | 15556.49                    |
| 12      | Uttarakhand      | 248.32                      |
| 13      | West Bengal      | 3558.99                     |
|         | Total            | 61616.12                    |

| NAIS   | NAIS             | NAIS                        |
|--------|------------------|-----------------------------|
| Sl. No | State / UT       | Farmers' Premium (Rs. Lakh) |
| 1      | Andhra Pradesh   | 682.11                      |
| 2      | Assam            | 243.91                      |
| 3      | Bihar            | 8064.98                     |
| 4      | Chhattisgarh     | 482.02                      |
| 5      | Gujarat          | 17375.47                    |
| 6      | Himachal Pradesh | 150.86                      |
| 7      | Jharkhand        | 324.50                      |
| 8      | Madhya Pradesh   | 44894.81                    |
| 9      | Maharashtra      | 16568.51                    |
| 10     | Manipur          | 41.45                       |
| 11     | Meghalaya        | 21.68                       |
| 12     | Orissa           | 13133.32                    |
| 13     | Sikkim           | 0.45                        |
| 14     | Tamil Nadu       | 3203.35                     |
| 15     | Telangana        | 3047.52                     |
| 16     | Tripura          | 1.46                        |
| 17     | West Bengal      | 7251.70                     |
| 18     | Puducherry       | 6.61                        |
|        | Total            | 115494.71                   |

| ALL SCHEMES COMBINED ALL COMPANIES   | ALL SCHEMES COMBINED ALL COMPANIES   | ALL SCHEMES COMBINED ALL COMPANIES   |
|--------------------------------------|--------------------------------------|--------------------------------------|
| Sl. No                               | State / UT                           | Farmers' Premium (Rs. Lakh)          |
| 1                                    | Andhra Pradesh                       | 8274.18                              |
| 2                                    | Assam                                | 620.83                               |
| 3                                    | Bihar                                | 30233.13                             |
| 4                                    | Chhattisgarh                         | 16756.49                             |
| 5                                    | Haryana                              | 1.71                                 |
| 6                                    | Himachal Pradesh                     | 2016.74                              |
| 7                                    | Jammu &Kashmir                       | 23.06                                |
| 8                                    | Jharkhand                            | 2371.29                              |
| 9                                    | Karnataka                            | 14501.24                             |
| 10                                   | Kerala                               | 393.50                               |
| 11                                   | Madhya Pradesh                       | 48315.18                             |
| 12                                   | Maharashtra                          | 30153.82                             |
| 13                                   | Rajasthan                            | 39034.30                             |
| 14                                   | Telangana                            | 13225.71                             |

| 15   | Uttar Pradesh    |   18010.05 |
|------|------------------|------------|
| 16   | Uttarakhand      |     940.7  |
| 17   | West Bengal      |   10841.9  |
| 18   | Andaman &Nicobar |       0    |
| 19   | Goa              |       0.52 |
| 20   | Tamil Nadu       |    3867.99 |
| 21   | Chhattisgarh     |     482.02 |
| 22   | Gujarat          |   17375.5  |
| 23   | Jharkhand        |     324.5  |
| 24   | Manipur          |      41.45 |
| 25   | Meghalaya        |      21.68 |
| 26   | Orissa           |   13133.3  |
| 27   | Sikkim           |       0.45 |
| 28   | Tripura          |       1.46 |
| 29   | Puducherry       |       6.61 |
|      | Total            |  270969    |

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