Implementation of Modified Crop Insurance Scheme
In addition to Agriculture Insurance Company of India Ltd. (AIC), 10 private general insurance companies namely, ICICI-Lombard, IFFCO-Tokio, HDFC-ERGO, Cholamandalam-MS, Reliance General, Future-Generali, Tata-AIG, SBI General, Universal Sompo and Bajaj-Allianz have been empanelled to participate in the scheme.
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. The salient activities under awareness campaign, involve the publicity of features & benefits of the scheme through advertisements in leading National/local News Papers, telecast through audio-visual media, distribution of pamphlets, participation in agriculture fairs / mela / gosti and organization of workshops / trainings and SMS through Kisan Portal etc. State Governments/UTs. are also being regularly persuaded to increase the coverage including notifying more crops under crop Insurance schemes. Recently, one day seminar/kisan fair especially on the PMFBY has been organized at various Krishi Vigyan Kendras (KVKs) between 30th March to 5th April, 2016 throughout the country.
The scheme is being implemented on actuarial premium rates basis which would be obtained by the bidding process. However, Farmer’s share in premium for food & oilseeds crops has been fixed at maximum 2% and 1.5% of sum insured for Kharif and Rabi seasons respectively. In case of annual commercial/horticultural crops maximum premium is 5%. The remaining part of the actuarial premium would be shared by the Central and State Governments on 50: 50 basis.
Salient Features of PMFBY
i) Provide comprehensive insurance coverage against crop loss on account of non-preventable natural risks, thus helping in stabilising the income of the farmers and encourage them for adoption of innovative practices.
ii) Increase the risk coverage of Crop cycle – pre-sowing to post-harvest losses.
iii) Area approach for settlement of claims for widespread damage. Notified Insurance unit has been reduced to Village/Village Panchayat for major crops
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.
vi) Uniform seasonality discipline & Sum Insured for both loanee & non-loanee farmers
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.
viii) Inundation has been incorporated as a localized calamity in addition to hailstorm and landslide for individual farm level assessment.
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.
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.
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.
xiii) Use of Remote Sensing Technology, Smartphones & Drones for quick estimation of crop losses to ensure early settlement of claims.
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).
This information was given by the Minister of State for Agriculture Shri .Mohanbhai Kalyanjibhai Kundariya in Rajya Sabha today.