India Agricultural Outlook Forum 2019

By Ashish Bhutani, CEO, Pradhan Mantri Fasal Bima Yojana, India

PMFBY – Achievements & Way Forward

Crop Insurance In India

Crop Insurance In India consists of 4 Schemes

1. Pradhan Mantri Fasal Bima Yojana (PMFBY) – Yield Index based crop insurance Scheme, 95% of the total Coverage

2. Restructured Weather Based Crop Insurance Scheme (RWBCIS) – Weather Index based Crop Insurance Scheme, 5% of the total Coverage

3. Unified Package Insurance Scheme (UPIS) – Consists of 7 sections , crop insurance is mandatory and farmer have to choose at least two sections to avail applicable subsidy

4. Coconut Palm Insurance Scheme (CPIS) – Implemented in 8 States by AIC and administered by Coconut Development Board (CDB). 50% premium – CDB, 25% - State & 25% - Centre

Pan India scheme. Seventh season of implementation

Multi-stakeholder Scheme – Central Govt; 27 States and UTs; 18 Insurance Companies; 160,000 bank branches, CSCs with VLEs across India

Mandatory for loanee farmers while non-loanee farmers apply for the scheme voluntarily

Entire crop cycle covered – pre sowing to post harvest losses

Subsidised premium rates for farmers - 2% of sum insured for Summer crops, 1.5% of sum insured for Winter Crops, and 5% for commercial/ horticulture crops

Remaining premium shared equally between Federal and Provincial Governments

Key Features of PMFBY

1 2 3 4 5

Farmer’s Application

166 million in six seasons

Voluntary Enrolment

In 2018-19

CSC - 13.3 million

Voluntary Coverage - 36%

NCIP National Crop

Insurance Portal (NCIP) form Kharif’2017

Policy Documents

28.8 million receipts in 10

regional languages for last 2 seasons

Gross Cropped Area

30% of gross cropped area is

insured

Achievements

Status of Implementation of PMFBY

• *Kharif 2018 claims are currently under process • **Rabi 2018-19 enrolment and claims statistics are provisional

Season

Number of Farmers Insured (million)

Total Sum Insured

Total Farmers Share in Premium

Total Gross Premium

Total Claim Paid

Total No. of Farmers against paid Claims

(million) (In USD Billion)

Kharif 2016 40.5 18.8 0.4 2.3 1.5 10.8

Rabi 2016-17 17.5 10.4 0.2 0.9 0.9 4.1 2016-17 58.1 29.2 0.6 3.1 2.4 14.8 Kharif 2017 35.0 18.3 0.4 2.7 2.6 14.6 Rabi 2017-18 17.5 11.2 0.2 0.9 0.5 2.5

2017-18 52.6 29.5 0.6 3.6 3.1 17.1 Kharif 2018* 34.1 19.6 0.5 3.0 1.8 10.5 Rabi 2018-19** 22.3 14.0 0.2 1.2 0.2 1.8

2018-19 56.4 33.6 0.7 4.1 2.0 12.3

Lack of Awareness

Issues in Yield

Estimation

Delay in Settlement of

Claims

Enrolment Issues

1. Delay in State Share of

Subsidy by State to

Insurance Companies

2. Delay in sharing of CCE

data by State government

to ICs

3. Delay in processing of

claims by Insurance

Companies

1. Delay in notification and

its digitization by States

2. Delay in transfer of

Premium and uploading

of Data on NCIP by

Banks

3. Erroneous data entry

Challenges

1. Loanee farmers are

unaware about Policy

details

2. Absence of Grievance

Redressal Structures

1. More than 7 million manual

CCEs during short period

of time require extensive

manpower

2. Manipulations during

conduct of CCE

3. CCE Schedule not shared

with ICs

Crop Insurance App – online

enrolment simplified for farmers National Crop Insurance

Portal operationalized – auto

administration of the Scheme

Online acknowledgement

receipts and SMS with

policy details

Provision of Penalty and adverse

ranking – Delay by states in

notification and its digitization

Integration of NCIP with ICs

System and CBS of banks -

Proposed

Linking of NCIP with Unified

Farmer’s Data base -

Proposed

Solutions – Enrolment & Awareness Grievance Redressal Committees –

State & District Level

Technology based claims

settlement in case of delay in

sharing of yield data/ non-usage of

CCE-agri app - Proposed

100% CCEs through mobile

application

Provision of release of

advance subsidy for both

GoI and State

Provision of Penalty on

States and ICs

Migration to smart sampling

for conduct of Crop Cutting

Experiments (CCEs) and

optimization of CCEs -

Proposed

Adoption of direct yield

estimation at gram panchayat

level through technology for all

major notified crops - Proposed

Solutions – Claim Settlement & Yield Estimation

Two-step process for assessment of crops

losses/yield for Claims Settlement - Proposed

@pmfby @PMFasalBimaYojana www.pmfby.gov.in

THANK YOU