Lok Sabha Question No. 889 (UNSTARRED), answered on 2016-03-01
Subject: Pradhan Mantri Fasal Bima Yojana
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: JYOTI DHURVE, SUDHEER GUPTA, DUSHYANT CHAUTALA, SANTOSH AHLAWAT, BHOLA SINGH, SHOBHA KARANDLAJE, BHAIRON PRASAD MISHRA, ARJUN RAM  MEGHWAL, RAJESH VERMA, RAJESH VERMA, Dr. BHOLA SINGH, C.R. CHAUDHARY, JANARDAN SINGH SIGRIWAL, SUSHIL KUMAR SINGH, SUSHIL KUMAR SINGH, SUNIL BALIRAM GAIKWAD, SUNIL BALIRAM GAIKWAD, RAJESHBHAI NARANBHAI CHUDASAMA, JAYAKUMAR JAYAVARDHAN, T. RADHAKRISHNAN, BALASUBRAMANIAM SENGUTTUVAN, RAHUL RAMESH SHEWALE, HARI NARAYAN RAJBHAR, GAJANAN CHANDRAKANT KIRTIKAR, KUNWAR HARIBANSH SINGH, RAHUL KASWAN, RAHUL KASWAN, GOPAL CHINAYYA SHETTY, KUNWAR PUSHPENDRA SINGH CHANDEL, MANOJ RAJORIA, AJAY (TENI) MISRA, SHRIKANT EKNATH SHINDE, DHARMENDRA YADAV, DHARMENDRA YADAV, DHANANJAY BHIMRAO MAHADIK, VINAYAK BHAURAO RAUT, PREM SINGH CHANDUMAJRA, Shrirang Appa Barne, M. K. RAGHAVAN, SUSHMITA DEV, FAIZAL P.P. MOHAMMED, M. I. SHANAVAS, HEENA VIJAYKUMAR GAVIT, VIJAYSINH MOHITE PATIL, SHAILESH (BULO MANDAL) KUMAR, RAJEEV SHANKARRAO SATAV, RAJEEV SHANKARRAO SATAV, VINOD KUMAR BOIANAPALLI, NAGENDRA KUMAR PRADHAN, PRABHAS KUMAR SINGH, MEKAPATI RAJAMOHAN REDDY, MALLIKARJUN  KHARGE, RAMACHANDRAN MULLAPPALLY, ASADUDDIN OWAISI, DILIP KUMAR MANSUKHLAL GANDHI, SUPRIYA SADANAND SULE, V. PANNEER SELVAM, C. N. JAYADEVAN, GOPALAKRISHNAN CHINNARAJ, CHANDRA PRAKASH JOSHI, (ADV.) JOICE GEORGE, JYOTIRADITYA MADHAVRAO SCINDIA, SHIVAJI ADHALRAO PATIL, ANANDRAO  ADSUL, BIDYUT BARAN MAHATO, BIDYUT BARAN MAHATO, SUMEDHANAND SARASWATI, RAJU ALIAS DEVAPPA ANNA SHETTI, CHARANJEET SINGH RORI, KALIKESH NARAYAN SINGH DEO, ASHOK SHANKARRAO CHAVAN, CHINTAMAN NAVSHA WANAGA, POONAMBEN HEMATBHAI MAADAM, LALLU SINGH, SHASHI THAROOR, BAIJAYANT "JAY" PANDA

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

## LOK  SABHA UNSTARRED QUESTION NO.889

TO BE ANSWERED ON THE  1 ST  MARCH, 2016

## PRADHAN MANTRI FASAL BIMA YOJANA

889. SHRIMATI JYOTI DHURVE: SHRI ASADUDDIN OWAISI: SHRI CHANDRA PRAKASH JOSHI: DR. HEENA VIJAYKUMAR GAVIT: MOHAMMED FAIZAL: SHRI B. VINOD KUMAR: KUMARI SUSHMITA DEV: KUNWAR HARIBANSH SINGH: ADV. JOICE GEORGE: SHRI RAJU SHETTY: DR. SHRIKANT EKNATH SHINDE: SHRI MOHITE PATIL VIJAYSINH SHANKARRAO: SHRI PREM SINGH CHANDUMAJRA: SHRIMATI SUPRIYA SULE: SHRI KALIKESH N. SINGH DEO: SHRI ANANDRAO ADSUL: SHRI SHRIRANG APPA BARNE: SHRIMATI POONAMBEN MAADAM: DR. PRABHAS KUMAR SINGH: SHRI SHAILESH KUMAR: SHRI RAJESHBHAI CHUDASAMA: SHRI ASHOK SHANKARRAO CHAVAN: DR. C. GOPALAKRISHNAN: SHRI M.K. RAGHAVAN: SHRI GAJANAN KIRTIKAR: SHRI ARJUN MEGHWAL: SHRI JANARDAN SINGH SIGRIWAL: SHRI GOPAL SHETTY: SHRI M. RAJA MOHAN REDDY: SHRI MULLAPPALLY RAMACHANDRAN: SHRI DHANANJAY MAHADIK: SHRI HARINARAYAN RAJBHAR: DR. SHASHI THAROOR: DR. J. JAYAVARDHAN: SHRI C.N. JAYADEVAN: DR. BHOLA SINGH: SHRI DILIPKUMAR MANSUKHLAL GANDHI: SHRI VINAYAK BHAURAO RAUT: SHRI SATAV RAJEEV: SHRI RAJESH VERMA:

- O.I.H.

ADV. CHINTAMAN NAVASHA WANAGA: SHRI M.I. SHANAVAS: SHRI KUNWAR PUSHPENDRA SINGH CHANDEL: SHRI BIDYUT BARAN MAHATO: SHRI MALLIKARJUN KHARGE: SHRI SUDHEER GUPTA: SHRI NAGENDRA KUMAR PRADHAN: SHRI JYOTIRADITYA M. SCINDIA: DR. MANOJ RAJORIA: SHRI CHARANJEET SINGH RORI: DR. SUNIL BALIRAM GAIKWAD: SHRI SUSHIL KUMAR SINGH: SHRI BHAIRON PRASAD MISHRA: SHRI C.R. CHAUDHARY: SHRI T. RADHAKRISHNAN: SHRI SUMEDHANAND SARSWATI: SHRI LALLU SINGH: SHRI V. PANNEERSELVAM: SHRI B. SENGUTTUVAN: SHRI AJAY MISRA TENI: SHRI RAHUL SHEWALE: SHRI ADHALRAO PATIL SHIVAJIRAO: SHRI RAHUL KASWAN: KUMARI SHOBHA KARANDLAJE: SHRIMATI SANTOSH AHLAWAT: SHRI DHARMENDRA YADAV: SHRI DUSHYANT CHAUTALA: SHRI BHOLA SINGH:

SHRI BAIJAYANT JAY PANDA:

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

- (a) whether  the  Government  has  unveiled  a  new  crop  insurance  scheme  called Pradhan Mantri Fasal Bima Yojana (PMFBY) with premium to be paid by farmers as low as  1.5%  of  sum  assured  for  all  rabi  crops  and  2%  for  kharif  crops  to  overcome  the compensation of natural calamities to farmers, if so, the details thereof along with the salient features of the scheme, the number of farmers to be covered during the next one year under the scheme, State-wise and the benefits to be derived therefrom;
- (b) the ratio of estimated expenditure as premium to be shared between the Union Government and State Governments;
- (c) whether  the  Government  is  considering  to  include  non-loanee  farmers,  tenant farmers and share-croppers within the ambit of the PMFBY, if so, the details thereof;

(d) whether  the  new  crop  insurance  scheme  is  likely  to  replace  the  existing  two schemes namely National Agricultural  Insurance  Scheme  (NAIS)  and  Modified  NAIS, which have some inherent drawbacks, if so, the details thereof; and

(e) the details of the steps taken by the Government to make the scheme fruitful for all the farmers of the 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)  to  (e):    Yes,  Madam.  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.  The  scheme  has  been  improved  from earlier schemes on several counts viz. lowest and one premium rate on pan-India basis for farmers i.e.  maximum  1.5%,  2%  and  5%  for  all  Rabi, Kharif and  annual horticultural/commercial  crops,  respectively;    no  capping  on  premium  resulting  no deduction in sum insured;  inundation has been incorporated as  a localized calamity in addition to hailstorm and landslide  for individual farm level assessment; provision for post harvest  losses due to cyclonic & unseasonal  rains, allocation of districts/areas on cluster/ group basis and for longer period to insurance companies,  for more effective implementation, as well as use of remote sensing technology & use of smartphone for getting  images  of  Crop  Cutting  Experiments    etc.  for  early  settlement  of  claims  have also been introduced.  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 made at par with PMFBY.

The  scheme  is  available  to  all  farmers  including  loanee,  non-loanee,  tenant, share-croppers.      The  scheme  would  be  implemented  on  actuarial  basis  but  the expenses over and above the premium paid by farmers should be shared by the Central and State Government on 50 : 50 basis.     The scheme envisages increasing coverage from present 23% to 50% of the gross cropped area of the country in next 2-3 years. Government  is  undertaking  a  comprehensive  publicity  and  awareness  programme  to educate the farmers about the benefit of crop insurance schemes.  Capacity building and training programmes for other stakeholders are also being organized.

## 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 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 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 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.

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