(a) whether it is a fact that there are delays in release of claims to farmers under Pradhan Mantri Fasal Bima Yojana (PMFBY), if so the details and reasons thereof;
(b) whether there are instances where insurance companies have unduly benefited from the scheme by having a monopoly in a district and going slow on issuing insurance during a drought year, if so, the details thereof; and
(c) the details of reforms taken to improve the scheme?
MINISTER OF AGRICULTURE AND FARMERS WELFARE
???? ??? ????? ?????? ?????? (SHRI NARENDRA SINGH TOMAR)
(a): As per provisions of Pradhan Mantri Fasal Bima Yojana (PMFBY) admissible claims are generally paid by the insurance companies within two months of completion of Crop Cutting Experiments/ harvesting period subject to availability of yield data and total State share of premium subsidy from concerned State Government within time. However, settlement of claims in some States get delayed due to reasons like delayed transmission of yield data; late release of their share in premium subsidy by some States, yield related disputes between insurance companies and States, non-receipt of account details of some farmers for transfer of claims and National Electronic Funds Transfer (NEFT) related issues, etc. However, this Department is regularly monitoring the implementation of PMFBY including timely settlement of claims. Penalty provisions for late settlement of claims by insurance companies and late release of funds by State Governments have also been stipulated under the scheme.
(b): No such incidence has been reported by any State Government. However, farmers can insure themselves through Common Service Centres and directly online on National Crop Insurance Portal (NCIP). Further, for transparency and monitoring both by Central and State Governments, individual farmers data is uploaded on the NCIP.
Moreover, other desirous empanelled insurance companies are also allowed to insure the non-loanee farmers on same premium rates to bring more competition and infrastructure for enrolment of farmers within district.
(c): Keeping in view the experience of implementation of PMFBY in 4 years and after detailed discussions with stakeholders, Government has recently approved the revamping of the Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS) for implementation from Kharif 2020 season. Changes/improvements made in the provisions/parameters of these schemes are given in Annexure.