Question : Compensation under Crop Insurance Scheme

(a) the unit taken into consideration while determining crop insurance;

(b) the extent to which insurance companies compensate the loss suffered by farmers in case of damage or destruction of crops due to natural calamities;

(c) whether compensation has been given to farmers under various crop insurance schemes in cases of loss of crops due to hailstorm, heavy rainfall, storms etc.;

(d) if not, the reasons therefor; and

(e) the time-frame fixed for provision of compensation to farmers under various crop insurance schemes?

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

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(a) to (e): Pradhan Mantri Fasal Bima Yojana (PMFBY), a yield index based scheme, provides comprehensive insurance coverage against the crop losses due to natural non-preventable risks including hailstorm, heavy rainfall, storms etc. and unit area for assessment of losses due to wide-spread natural calamities has been reduced to village/village panchayat for major crops. However, States/UTs can notify the unit area above village/village panchyat for minor crops. As per scheme provisions, farmers are indemnified to the extent/percentage of crop losses against the defined Threshold Yield multiplied by sum insured as decided by the State Government. Claim amount for wide spread calamites are calculated based on the yield data arrived from requisite number of Crop Cutting Experiments (CCEs). However, losses due to localized risks of hailstorm, landslide and inundation and post-harvest losses are calculated on individual insured farm basis.

On the other hand, weather index based Restructured Weather Based Crop Insurance Scheme (RWBCIS) provides insurance protection/claims to the farmers against adverse weather incidence, such as deficit and excess rainfall, high or low temperature, humidity etc. which are deemed to impact adversely the crop production.

The tentative details of total claims paid/payable to farmers under aforesaid schemes including for crop losses due to hailstorm, heavy rainfall, storm etc. during 2016-17 are Annexed.

Specific timelines for various activities including settlement of claims by insurance companies within three weeks of receipt of yield data from concerned State Governments, have been provided under the scheme.