Lok Sabha Question No. 286 (UNSTARRED), answered on 2016-07-19
Subject: Crop Insurance Schemes
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: BHARATENDRA SINGH

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

## LOK  SABHA

## UNSTARRED QUESTION NO.286

TO BE ANSWERED ON THE 19 TH  JULY, 2016

## CROP INSURANCE SCHEMES

## 286.   KUNWAR BHARATENDRA:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी 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) whether any deficiencies have been identified by the Government in implementation of the existing crop insurance schemes; and
- (d) if so, the corrective measures taken/ being taken for better implementation of these crop insurance schemes and make them more effective and fruitful?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI  SUDARSHAN BHAGAT)

(a) to (d): 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  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 current Kharif 2016 season. All the major issues enumerated above have been addressed in the PMFBY.  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 from Kharif 2016 season.

## Salient Features of PMFBY

- i) Provide comprehensive insurance coverage against crop loss on account of nonpreventable 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.

- xv) Focused  attention  on  increasing  awareness  about  the  schemes  among  all stakeholders and appropriate provisioning of resources for the same.
- 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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