The issuance of the Notification by the State/UT Government for the implementation of the scheme (PMFBY) will signify their acceptance of all the provisions, modalities and guidelines of the Scheme. The State Government / UT must ensure the release of the notice and its circulation to all interested agencies.
Sum Insured /Coverage Limit
Detailed overviews of the Crop Insurance Portal for administration of the Crop Insurance Program along with its phases, functions and role and responsibility for data/information entry etc. under various phases are given in Clause XXV. State Government and concerned IAs will be responsible for entry of all necessary information/data as per notification issued by the States in the Crop Insurance Portal well in time so that information can be available in digitized form to all stakeholders.
Premium Rates and Premium Subsidy
The losses exceeding the above level in the harvest season would be met by equal contribution from the Central Government and the concerned State/UT Governments. However, the liability for payment of all claims lies solely with the concerned IAs.
Seasonality Discipline
8 Cut off date for receipt of Declarations Within 7 days of receipt of from farmers covered on Voluntary basis declaration/premium. 9 Cut-off date for receipt of Proposal Within 7 days of receipt of from Lene farmers covered on Declarations by the.
Collection of Proposals and Premium from Farmers
Farmers who do not have a loan can submit insurance proposals personally/by post to the insurance company with the required premium. Farmers who do not have a loan can also purchase insurance through the 'online portal' of the concerned insurance company or through the crop insurance portal designed by the government for this purpose.
Assessment of Loss / Shortfall in Yield
However, any dispute in the case may be referred to the department of the concerned state/agency. The State Government Department which oversees the conduct of CCEs will submit yield data per cut off date decided by SLCCCI along with the results of individual CCEs.
On Account Payment of Claims due to Mid-Season Adversity
The maximum amount payable is 25% of the probable claims, subject to adjustments to the final claims. vii. A joint committee of the state government and the insurer for crop damage assessment shall be formed and notified by the SLCCCI for each district before the commencement of the crop season. This Joint Committee will decide whether you are eligible for payment on account based on weather data (available AWS, communicated by the government)/long-term average rainfall data/satellite images supported by estimated yield losses at the level of the notified insurance unit.
Based on the above report, a joint inspection of the affected area may be done by the Insurance Company to verify on the ground with the state government officials and arrive at the extent of loss. If the expected loss of the affected crop is more than 50% of the normal yield for the Notified Insurance Unit, payment on account will be payable.
Prevented / Failed Sowing and Prevented Planting / Germination Claims
The state government will provide notified insurance unit and crop wise normal area sown at the beginning of the season within 15 days at the beginning of the season. ii. Notifying Insurance units will be eligible for “Prevent Sowing/ Planting” .. payout only if more than 75% of Crop Sown Area for notified crop remained unsown due to occurrence of any of the above hazards. iii. State Government will declare a notified insurance unit as having experienced failed sowing/planting conditions with approximate areas in percentage of the unit.
The insurance company would disburse the claim within 30 days of the order/notification of the state invoking the occurrence of the insured risk provided the data on the estimated area sown is received from the state government. The insurance cover shall cease for the affected crop in a notified insurance unit as soon as a claim under this section is called and the affected Insurance Unit/Crop would not be eligible for the claim based on the area yield calculated at the end of the season.
Post-Harvest Losses
The loss assessors would be appointed by the insurance company for assessing losses due to post-harvest loss activities (yield insurance). The loss rate would be determined based on the required percentage of sampling (as decided by the Joint Commission) of the affected area by the insurance company. e). The loss rate would be determined based on the required percentage of sampling (as decided by the Joint Commission) of the affected area by the insurance company. b) Proxy indicators: Report in local media or Agricultural Organization reports.
The claims assessors would be appointed by the insurance company for assessing losses arising out of the activities of Localized Risks (Return Insurance). The payment under the cover would only be paid by the insurance company after receiving the government's share of the premium subsidy. iv.
Important Conditions /Clauses Applicable for Coverage of Risks 1. Insurance companies should have received the premium for coverage
In case of farmers voluntarily covered through intermediaries, the payable claims will be directly credited to the respective bank accounts of the covered farmers and they may also be provided with details of the claims. Adequate publicity should be provided in all villages of notified districts/zones. All possible means of electronic and print media, farmers fair, exhibitions, SMS, short films and documentaries will be used to create and spread awareness about the benefits and provisions of the scheme among the growers and agencies involved in the implementation of the scheme.
The State Ministries of Agriculture/Cooperation, in consultation with the insurance companies, shall prepare an appropriate plan for adequate awareness and notification to the public three months prior to the commencement of the coverage period. The State Government/UT in collaboration with insurance companies will also work out a plan for capacity building of related agents, banks etc. for the effective implementation of the scheme and organized workshops/awareness program for them in cooperation with the participating insurance companies.
Commission and Bank Charges
All published material information must be uploaded on crop insurance portal along with coverage/frequency/duration etc.
Service Tax
Review of the Scheme
Monitoring of the Scheme
Clustering/Clubbing of districts for bidding by the state
To diversify/spread risk and cover high risk/low risk/ districts. equally, the State Government would group the districts in such a way that each group contains a mix of districts with different risk profiles. Before inviting the bid, the State Government would divide the State into multiple groups of possibly 15-20 districts each. Two illustrations using different methods of clustering/district clustering and L1 bidder determination are given below.
Two illustrations using different methods of clustering/clubbing of districts and determination of L1 bidder are given below. These are
Calculate the 1/3 and 2/3 percentile loss cost values for the entire state using the loss cost series of all counties in the state. Medium District Loss Cost >= 1/3 and < 2/3 percentile value High District Loss Cost >= 2/3 percentile value. The state government would plan the area insured for the next season for each district crop combination.
District Crop Latest Area Insured Existing Targeted Estimated Name available in Normal Penetration Penetration Area. Estimated area insured for the current season-year will be multiplied by the sum insured (Rs./ha) to arrive at the expected sum insured (in Rs.) for each district-crop combination.
Expected Sum Insured (in Rs.) 10050000
The expected sum assured (ESI) at the district level will be the total of each district-crop combination within the districts. Within the insurance group, insurance companies will be required to quote premium rates for all district-crop combinations for their bids to be evaluated. The company that does not quote for even one of the total combinations of regional crops within the group will be disqualified for the tender period.
There will be no further negotiations with the L1 bidder to accept L1 rates from other bidders for any district crop combination, i.e. if any company refuses after being declared L1, the company may be blocked for the coming season and the L2 can bid the cluster for implementation of the crop insurance scheme at L1 district crop combination rates and so on to L3, L4 as per the permission of the insurance company.
L1 Calculation
Role and Responsibilities of Various Agencies
To conduct the required number of CCEs in the notified area after few series and provide the yield data to the insurance company along with the results of individual CCEs within the prescribed cut-off date. If Concerned Bank and its branches retain the premium amount collected beyond the stipulated periods, they will be liable to pay interest (at the prevailing interest rate for savings accounts) for the delay period to the insurance company. . g) Nodal banks/branches shall also ensure that compensation amounts received from insurance companies with full details are forwarded to (subordinate) bank branches/PACS to be credited to the accounts of the beneficiaries. h) The Nodal Banks/Administrative Offices can also collect the list of individual insured farmers with required details like name and fathers. The insurance company recognizes all declarations submitted by the banks stating the data on the harvest, the area, the insured amount, etc.
Banks should check their records and errors, if any, should be reported to the insurance company immediately. To prepare the consolidated statements for borrower and non-borrower growers and forward the same to the insurance company along with the premium amount and other data of the insured farmers.
Crop Insurance Portal for administration of Crop Insurance Program
The cultivator must present the area sown confirmation certificate. f) The farmer should ensure that he gets insurance cover for one or more notified crops grown/intended to be grown on a piece of land from a single source. State Government and concerned IAs will be responsible for entering all necessary information as per notification issued by the states in the crop insurance portal. To provide crop insurance information for a particular area in a tailored form, this department has also developed an Android based mobile app "Crop Insurance" to get detailed information of any particular notified/insured area along with premium calculator.
Crop Insurance App can be downloaded from Google Play Store or www.agri-insurance.gov.in or www.mkisan.gov.in. The farmer can fill the online application form available on the crop insurance portal (www.agri-insurance.gov.in) and select the bank branch of the commercial banks/RRB/DCCB for payment of the required premium.
