Agriculture News, jobs

Agriculture Finance

New Provisions in the Operational Guidelines of PMFBY

New Provisions in the Operational Guidelines of Pradhan Mantri Fisal Bima Yojana (PMFBY):
• Provision of Penalties/ Incentives for States, ICs and Banks i.e. 12% interest rate to be paid by the Insurance Company to farmers for delay in settlement claims beyond two months of prescribed cutoff date. Similarly, State Govt. have to pay 12% interest rate for delay in release of State share of Subsidy beyond three months of prescribed cut off date/submission of requisition by Insurance Companies.

• Detailed SOP for Performance evaluation of ICs and their de-empanelment

• Inclusion of Perennial horticultural crops (on pilot basis) under the ambit of PMFBY. (OGs of PMFBY envisages coverage of food and Oilseed crops and Annul Commercial & Horticultural crops)

• Inclusion of hailstorms in post harvest losses, besides unseasonal and cyclonic rainfalls

• Inclusion of cloud burst and natural fire in localized calamities in addition to hailstorm, landslide, and inundation.

• Add on coverage for crop loss due to attack of wild animals on pilot basis with the additional financial liabilities of this provision to be borne by concerned state Govt.

• Mandatory capturing of Adhaar number – This would help in de-duplication

• Target for Coverage to ICs especially of Non loanee farmers (10% incremental).

• Definition of Major Crops, Unseasonal rainfall and Inundation incorporated for clarity and proper coverage

• Rationalization of premium release process: Release of Upfront premium subsidy based on 50% of 80% of total share of subsidy of corresponding season of previous year as GOI/State subsidy at the beginning of the season- Companies need not provide any projections for the advance subsidy. Second Installment – balance premium based onapproved business statistics on Portal for settlement of claims and final installment after reconciliation of entire coverage data on portal based on final business statistics on portal.

• States allowed to take decision for inclusion of crops having high premium for calculation of L1 calculation and for notification.

• Rationalization of methodology for calculation of TY - Moving average of best 5 out of 7 years for calculation of claim amount.

• Settlement of claims (Prevented sowing/ on account for Mid season adversity / Localized Claims) without waiting for Second installment of final subsidy.

• Yield based claims to be settled on the basis of subsidy provided on provisional business data.

• Separate Budget Allocation for Administrative expenses (atleast 2% of budget of scheme).

• Broad Activity wise seasonality discipline containing defined timelines for all major activities to streamlines the process of coverage, submission of yield data and early settlement of claims.

• District wise crop wise crop calendar (for major crops) to decide cutoff date for enrolment.

• Increased time for change of crop name for insurance - upto 2 days prior to cutoff date for enrolment instead of earlier provision of 1 month before cutoff date.

• More time to insured farmer to intimate individual claims – 72 hours (instead of 48 hours) through any stakeholders and directly on portal.

• Timeline for declaration of prevented sowing

• Detailed SOP for dispute redressal regarding yield data/crop loss.

• Detailed SOP for claims estimation w.r.t. Add on products i.e. Mid season adversity, prevented/failed sowing, post harvest loss and localized claims

• Detailed SOP for Area Correction factor

• Detailed SOP for Multi picking crops.

• Detailed plan for publicity and awareness- earmarked expenditure-0.5% of Gross premium per company per season

• Use of RST in clustering/Risk classification.

• Penalties/ Incentives for States, ICs and Banks

• Performance evaluation of ICs and their de-empanelment


Copyright © 2017 · All Rights Reserved · IndiaAgroNet.Com