Insurance Programme (NCIP)
9.6 Efforts are being made to make the scheme technology driven with the primary
objective to reduce the delays in claim payment to farmers. Capturing of CCEs data on smartphones/CCE Agri App and its realtime transfer on Crop Insurance Portal has been made mandatory from Kharif 2017 and the States have to provide an evidence of having conducted CCEs before Government of India share in subsidy is released. Remote sensing will be used to rationalize the number of crop cutting experiments at unit area level.
9.7 For effective implementation, an integrated crop insurance portal has been developed to integrate all the stakeholders on a single platform on real time basis. This has also enabled access to individual farmer-wise detailed data. Further, it has been decided to obtain the Aadhar number of insured farmers, details of land records for de-duplication. In addition, it is proposed to Directly Transfer the Benefits (Claims) to farmers account from Kharif 2018 season. Other features of PMFBY are given as under :
• PMFBY provides a comprehensive insurance cover against failure of the crops due to non-preventable natural
calamiaties thus helping in stabilising the income of the farmers and encouraging them to adopt innovative practices.
• The Scheme envisages coverage of all Food & Oilseeds crops and Annual Commercial/Horticultural Crops for which past yield data is available and for which requisite number of Crop Cutting Experiments (CCEs) will be conducted being a part of the General Crop Estimation Survey (GCES).
• The scheme is compulsory for loanee farmer obtaining Crop Loan /KCC loans for notified crops. However, voluntary for Other/non loanee farmers who have insurable interest in the notified crop(s).
• The seasonality discipline is same for both loanee and non-loanee farmers.
• The scheme is implemented by 18 empanelled insurance companies including AIC, all the 4 companies of General Insurers’ Public Sector Association (GIPSA) and other private general insurance companies. Selection of Implementing Agency (IA) is being done by the concerned State Government through bidding process.
• The revamped State Level Co-ordination Committee on Crop Insurance (SLCCCI), Sub-Committee to SLCCCI and District Level Monitoring Committee (DLMC) are responsible for proper management of the Scheme in the concerned State.
• The Scheme is implemented on an ‘Area Approach basis’. The unit of insurance shall be Village/Village Panchayat level for major crops and for other crops it may be a unit of size above the level of Village/Village Panchayat.
• The Threshold Yield (TY) is the benchmark
yield level at which Insurance protection is being given to all the insured farmers in an Insurance Unit Threshold of the notified crop is moving average of yield of last seven years excluding yield upto two notified calamity years multiplied by indemnity level.
• Three levels of Indemnity, viz., 70%, 80%
and 90% corresponding to crop Risk in the areas is available for all crops.
• The Loss assessment for crop losses due to non-preventable wide-spread natural risks is on Area approach.
• However losses due to localised perils (Hailstorm, landslide & inundation) and Post-Harvest losses due to specified perils, (Cyclone/Cyclonic rain &
Unseasonal rains) are assessed at the affected insured field of the individual insured farmer.
• In case majority of insured crops of a notified area are prevented from sowing/planting due to adverse weather conditions the insured crop is eligible for indemnity claims upto maximum of 25%
of the sum-insured.
• There is also a provision of on account claims in case of adverse seasonal conditions during crop season viz. floods, prolonged dry spells, severe drought, and unseasonal rains. On account payment upto 25% of likely claims will be provided, if the expected yield during the season is likely to be less than 50% of normal yield
• State governments have to use Smart phone apps for video/image capturing CCEs process and transmission thereof with CCE data on a real time basis for timely, reliable and transparent
• The cost of using technology etc. for conduct of CCEs etc. is being shared between Central Government and State/
U.T. Governments on 50:50 basis.
Restructured Weather Based Crop Insurance Scheme (RWBCIS)
9.8 With the objective to bring more farmers under the fold of crop insurance and to overcome the shortcoming regarding delay in settlement of claims etc under erstwhile NAIS, a pilot Weather Based Crop Insurance Scheme (WBCIS) was launched in 20 States (as announced in the Union Budget 2007- 08). However WBCIS was implemented as a full-fledged component scheme of NCIP from Rabi 2013-14 season to Rabi 2015-16. WBCIS intends to provide insurance protection 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. It has the advantage to settle the claims within shortest possible time. Under WBCIS, actuarial rates of premium was charged. Recently the scheme has further been restructured on the basis of premium structure and administrative lines of PMFBY and available in the country from Kharif 2016 as Restructured WBCIS.
9.9 During 2016-17 (i.e. Kharif 2016 and Rabi 2016 seasons) about 571 lakh farmer applications were provided crop insurance for a sum of Rs. 2,02,231 crore under PMFBY
& RWBCIS. State-wise coverage details under PMFBY and RWBCIS are given at Annexure 9.1.
Coconut Palm Insurance Scheme (CPIS) 9.10 The Coconut Palm Insurance Scheme (CPIS) is implemented since the year 2009-10
in the selected areas of Andhra Pradesh, Goa, Karnataka, Kerala, Maharashtra, Odisha and Tamil Nadu. The scheme was implemented as a full-fledged component scheme of NCIP from Rabi 2013-14 season and is still under implementation in all coconut growing States.
The scheme is administered by Coconut Development Board. Insurance coverage is extended to the total loss of the individual palm in the age group of 4 to 60 years for dwarf and hybrid and 7 to 60 years for tall variety, leading to either death of palm or the palm becoming useless due to various natural and other perils. The farmers should have at least 5 healthy nut bearing palms in the age group of 4 to 60 years in contiguous area/
plot and should have been enrolled by State Agriculture/ Horticulture Department or Coconut Development Board or any other such agency under rehabilitation/ development/
expansion scheme. The Sum Insured is based on the average input cost of the plantation and the age of the specific plant. The Sum Insured varies from Rs. 900 per palm (in the age group of 4-15 years) to Rs. 1725 per palm (in the age group of 16-60 years). The premium rate per palm ranges from Rs. 9.00 (in the age group of 4 to 15 years) to Rs. 14.00 (in the age group of 16 to 60 years) and it varies on sum insured per year, considering the age of specific palm. Fifty per cent of premium is contributed by GOI; 25% by the concerned State Government and the remaining 25%
by the farmer. The Insurance Company i.e.
Agriculture Insurance Company (AIC) of India Ltd. is the implementing agency of the scheme. The CPIS is being administered/
implemented by the Coconut Development Board (CDB).