Question : Profits by Insurance Companies under PMFBY

(a) the details of the insurance companies participating in the Pradhan Mantri Fasal Bima Yojana Scheme;

(b) whether it is true that insurance companies have earned a profit of Rs. 15,795 crore in the past two years (2016-17 and 2017-18) under Pradhan Mantri Fasal Bima Yojana across the country if so, the details thereof;

(c) whether it is also true that profit margin under total premium collected by insurance agencies increased from 2016-17 to 2017-18;

(d) if so, the details thereof and the reasons for this increased profit margin of insurance companies; and

(e) the number of farmers who have actually been covered/insured under PMFBY, the details thereof, State-wise including Gujarat?

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

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(a):: At present, total 18 companies, which includes all the 5 Public Sector General Insurance Companies and 13 Private Sector General Insurance Companies, have been empanelled for implementation of Pradhan Mantri Fasal Bima Yojana (PMFBY) in the country. The list of empanelled general insurance companies is at Annexure-I.

(b) to (d): Crop insurance is a major risk mitigation tool for the benefit of farmers. Insurance is all about spreading the risk over the period and over the area. Insurers save premium in good seasons/years and pay high claims, if any in bad years from the saving made in the good years.

Inspite of overall good monsoon during first two years of implementation of PMFBY, the claim ratio during 2016-17 is about 75% and during 2017-18, it is about 81%. Moreover, administrative and other cost ofr insurance company for implementation of the scheme ranges from 10% to 12% of gross premium. Further, the farmers in most affected areas/States received higher claims and the claim ratio was high. Details of a few such States are given in Annexure-II.

Details of premium collected and claims paid by insurance companies during 2016-17 and 2017-18 are given in Annexure-III.

(e) : State-wise details of enrollment of farmers under PMFBY during 2016-17 and 2017-18 are given in Annexure-IV.