Compliance with PMFBY guidelines
Agriculture and Farmers Welfare
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE
UNSTARRED QUESTION NO.650
TO BE ANSWERED ON 07/02/2020
COMPLIANCE WITH PMFBY GUIDELINES
†650. DR. AMAR PATNAIK:
Will the Minister of AGRICULTURE AND FARMERS WELFARE be pleased to state:
(a) whether steps have been taken by Government to ensure accurate methods of calculation of crop loss to farmers;
(b) if so, the details thereof; and
(c) the method adopted by Government to monitor the compliance of insurance companies with the operational guidelines of PMFBY?
MINISTER OF AGRICULTURE AND FARMERS WELFARE
(SHRI NARENDRA SINGH TOMAR)
(a) to (c): Erstwhile Crop Insurance schemes and current schemes namely, Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS) are mainly implemented on area approach basis. As per provisions of PMFBY, farmers are indemnified to the extent/percentage of crop losses against the defined Threshold Yield multiplied by indemnity level 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) conducted by the concerned State Government. Claims per hectare are worked out as per following formula:
Threshold Yield (TY) – Actual Yield (AY)
---------------------------------------------------- X Sum Insured
Threshold Yield (TY)
Where Threshold Yield for a crop in a notified insurance unit is the average yield of best 5 years out of past seven years multiplied by applicable indemnity level for that crop.
Based on the experience, improvements have been made in calculation of threshold yield from 3 or 5 years yield data for certain crops under erstwhile National Agricultural Insurance Scheme (NAIS) to 7 years yield data excluding 2 declared calamity years by the State authority under Modified NAIS (MNAIS) and PMFBY. To benefit the farmers calculation of threshold yield has further been revised under PMFBY to yield data of best 5 years out of 7 years.
However, losses due to localized risks of hailstorm, landslide, inundation, cloud burst & natural fire and post-harvest losses are calculated on individual insured farm basis. Further, there is also a provision to pay claims towards prevented sowing/failed germination and adhoc claims in case of mid season adversity.
Similarly under Restructured Weather Based Crop Insurance Scheme (WBCIS), deviation from the prescribed weather parameters is paid under the scheme as per following formula :
If observed trigger value falls below or above, the notified trigger value, then claims per unit will be calculated using following formula depending upon index definition:
Claims per Unit = (Difference between Observed
& Notified index value) X Notional Payout
Overall claims will be claims per unit X Number of Units
To further improve the collection of yield data for calculation of claims PMFBY provides for use of technology for better implementation of the scheme. Accordingly, CCE Agri App for transfer of CCEs data with date/time stamp on realtime basis to avoid human errors in transmission/reporting of CCEs data and to ensure better transparency and timeliness.
Further, the Department of Agriculture, Cooperation and Farmers Welfare, through Mahalanobis National Crop Forecast Centre (MNCFC) had carried out pilot studies for Smart Sampling Technique/Optimization of Crop Cutting Experiments (CCEs) using Remote Sensing/Sattelite data in various States involving 8 agencies/ organizations during Kharif 2018 and Rabi 2018-19 under PMFBY. The review of these pilot studies was carried out by High Level Committee constituted for the purpose.
Accordingly, based on these results and the technologies which were verified during the Pilot studies, the Government rolled out Smart Sampling Technique (CCE location selection using satellite data) optimization of CCEs, in 96 districts of 9 States, for rice crop, during Kharif, 2019. Around 1 lakh CCEs for Rice crop were conducted, during Kharif 2019, using Smart Sampling Technique.
Pilot studies have been undertaken for estimation of yield at Gram Panchayat level, during Kharif 2019, through 12 agencies, by use of technology (Satellite data, Unmanned Aerial Vehicle (UAV), Artificial Intelligence, Machine Learning, etc.). As soon as statistically sound methodology for yield estimaton through technology is established for the crop, the same may be adopted.
However, Government undertakes regular close monitoring of the scheme and resolve the yield data related issues for calculation of claims between State Governent and insurance companies through Technical Advisory Committee (TAC) at Central level.