PMFBY Implementation Requirements Quiz
84 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which major activity is NOT required of empaneled Insurance Companies for the implementation of PMFBY?

  • Conducting pilot studies for new technology
  • Creating a new insurance policy (correct)
  • Implementing a grievance redressal mechanism
  • Deploying adequate manpower for CCEs

What percentage of incremental increase in non-loanee coverage is required at the district level for each season?

  • 15%
  • 5%
  • 20%
  • 10% (correct)

What must Insurance Companies deploy to ensure effective outreach of the Scheme?

  • Financial incentives for farmers
  • Traditional advertising in urban areas
  • Robust digital applications (correct)
  • Advanced marketing strategies

Which app is specifically mentioned as compulsory for empaneled Insurance Companies to use?

<p>CCE Agri App (A)</p> Signup and view all the answers

What is the purpose of the grievance redressal mechanism that Insurance Companies must create?

<p>To register and resolve complaints (C)</p> Signup and view all the answers

What is the specified service charge percentage that Banks must receive from the farmer's premium?

<p>4% (A)</p> Signup and view all the answers

When must the detailed planning for IEC activities be submitted by Insurance Companies?

<p>Before the start of each season (B)</p> Signup and view all the answers

What aspect of the Scheme involves settling claims for farmers?

<p>Claim settlement under Basic Cover (C)</p> Signup and view all the answers

What is the average yield growth rate calculated over the last 7 years?

<p>6.25% (B)</p> Signup and view all the answers

What is the Threshold Yield for the year 2021?

<p>1,183 (D)</p> Signup and view all the answers

Which indemnity level is consistently described throughout the contract period?

<p>70% (C)</p> Signup and view all the answers

How must the yield growth rate in preceding years be rounded?

<p>Rounded to two decimal places (C)</p> Signup and view all the answers

Under the variable threshold yield approach, how is the Threshold Yield determined?

<p>Recomputed every year based on actual crop yield of the previous year (A)</p> Signup and view all the answers

What must be evaluated to notify yield for each crop in a district?

<p>Growth rate of the crops (D)</p> Signup and view all the answers

How is the L1 Company determined in the tender process?

<p>By quoting the lowest weighted average premium rate (D)</p> Signup and view all the answers

What does an increase or decrease in the threshold yield affect?

<p>Premium rate determination (B)</p> Signup and view all the answers

What is the primary reason for ensuring caution during the tender process?

<p>To prevent the distortion of future rates and insurer participation (B)</p> Signup and view all the answers

Under what condition is re-tendering permissible?

<p>Due to inadequate participation of insurance companies (C)</p> Signup and view all the answers

What must State/UTs upload on the NCIP for effective communication?

<p>Meeting notices and tender documents (C)</p> Signup and view all the answers

What happens if the L1 bidder withdraws their bid?

<p>Financial losses may be recovered from the withdrawing bidder (A)</p> Signup and view all the answers

What guidelines govern the bidding and negotiation conditions?

<p>Central Vigilance Commission guidelines (C)</p> Signup and view all the answers

What initiates the termination of the contract by either party?

<p>Issuing a written notice under specific conditions (C)</p> Signup and view all the answers

What is the minimum percentage of Gross Cropped Area that defines a crop as major in a district?

<p>25% (C)</p> Signup and view all the answers

What penalty applies if a party terminates the agreement for reasons not specified in the guidelines?

<p>A penalty of up to 5% of total premium (C)</p> Signup and view all the answers

When should the work order be issued after the opening of bids?

<p>Within 2 weeks (D)</p> Signup and view all the answers

Which document must be included in the bid document according to the guidelines?

<p>Conditions stipulated by State/UT Government (B)</p> Signup and view all the answers

What action is required if an insurer objects to a tender condition?

<p>Reference to the State/UT Government with a copy to GoI (A)</p> Signup and view all the answers

What is the role of the State/UTs in notifying crops and areas under the scheme?

<p>To specify crops and defined areas for the operational scheme (D)</p> Signup and view all the answers

What should be done with documents like addendums and notifications of award?

<p>Upload them on the Document Management module of NCIP (D)</p> Signup and view all the answers

What is the primary calculation used to determine the Threshold Yield of a notified crop?

<p>Average Yield multiplied by the Indemnity level (C)</p> Signup and view all the answers

What happens to the Indemnity level during the entire contract period?

<p>It remains the same as prescribed in the tender (D)</p> Signup and view all the answers

What data must be uploaded on the Portal before floating the Tender?

<p>Last 10 years Average Yield and Threshold Yield data (A)</p> Signup and view all the answers

How is the Threshold Yield calculated for a multi-year contract?

<p>By applying a fixed yield method or laddered method (C)</p> Signup and view all the answers

Which of the following details is NOT required to be published with the tender for risk analysis?

<p>Crop yield in different climatic conditions (D)</p> Signup and view all the answers

What does a negative average growth rate in yield indicate for the Threshold Yield?

<p>Threshold Yield will remain constant for the crop (B)</p> Signup and view all the answers

What is the primary basis for fixing a ceiling on premium rates by the State/UT Government?

<p>Statistical evaluations and loss cost analysis (B)</p> Signup and view all the answers

What formula is used to calculate the Threshold Yield?

<p>Best 5-year yield summed and multiplied by Indemnity level (B)</p> Signup and view all the answers

How is the lowest weighted premium of a district calculated?

<p>Using insured area data from the previous season (D)</p> Signup and view all the answers

What must be prescribed in the tender for each crop and IU combination?

<p>Indemnity level and Threshold Yield (A)</p> Signup and view all the answers

How is the premium rate determined for the tender process?

<p>On the basis of lowest weighted average premium rate (A)</p> Signup and view all the answers

What is the timeframe for releasing a work order after the Tender opening?

<p>Within 2 weeks (B)</p> Signup and view all the answers

In case of reorganizing existing districts, what happens to the indemnity level?

<p>A weighted average calculation is performed (C)</p> Signup and view all the answers

Which category does NOT include the information about crops in the bidding process?

<p>Financial eligibility of farmers (A)</p> Signup and view all the answers

What data is included for the calculation of L1 if new notified crops are introduced?

<p>30% of the average net sown area of the last 3 years for major crops (D)</p> Signup and view all the answers

What remains constant when applying the Fixed Threshold Yield method?

<p>The premium rates for the insurance policies (A)</p> Signup and view all the answers

How should the evaluation of yields for different crops be conducted at the district level?

<p>Through a crop-specific simple average of yields (C)</p> Signup and view all the answers

What format should the insurance companies use for submitting bids?

<p>Separate envelopes for Ceiling and regular crops (B)</p> Signup and view all the answers

What is an implication of using a laddered Threshold Yield approach?

<p>It requires consistent annual yields (C)</p> Signup and view all the answers

What should be included in the tender document regarding crops with ceiling premium rates?

<p>Names of such crops (A)</p> Signup and view all the answers

Which data is expected to be available through the NCIP?

<p>Crop-wise historical Coverage and Claim data for the past 3 years (C)</p> Signup and view all the answers

Which yield data is considered for calculating the Threshold Yield?

<p>The best yield from five out of the last seven years (C)</p> Signup and view all the answers

How does the Threshold Yield affect the insurance premium rates during the contract period?

<p>They remain constant if the Threshold Yield stays the same (B)</p> Signup and view all the answers

Which aspect of crop classification is considered for bidding evaluations?

<p>Classification of irrigated and unirrigated districts (D)</p> Signup and view all the answers

Which requirement involves Automatic Weather Stations?

<p>Details must be provided as per WINDS Manual 2023 (A)</p> Signup and view all the answers

What happens if the risk propensity does not support actuarial rates offered?

<p>The crops may be removed from the proposed list (A)</p> Signup and view all the answers

What additional data must be uploaded for the current tender?

<p>Sum Insured and Indemnity Values for the current tender (C)</p> Signup and view all the answers

What is the minimum duration for which a Notification should be issued to aid banks in premium deductions?

<p>One year (B)</p> Signup and view all the answers

What factors does the SLCCCI consider for notification regarding crop risk coverage?

<p>Availability of local farmers, past yield data, capacity for yield estimation (C)</p> Signup and view all the answers

Which data format should States/UTs provide to Insurance Companies for risk assessment?

<p>Soft format in Excel sheet (C)</p> Signup and view all the answers

How many minimum CCEs should be planned for irrigated and un-irrigated crops when proposing separate notification?

<p>Minimum CCEs unspecified (C)</p> Signup and view all the answers

What could be the maximum deviation for notifying additional IUs within a district at the same premium rate?

<p>10% (A)</p> Signup and view all the answers

What responsibilities does the Insurance Company have in regards to the tender document?

<p>Scrutinize the tender document for details (A)</p> Signup and view all the answers

How many years of past yield data is required for calculating TY and Loss Cost?

<p>10 years (B)</p> Signup and view all the answers

What is the maximum indemnity level provided in the scheme?

<p>90% (C)</p> Signup and view all the answers

What should be part of the notification when notifying a crop?

<p>Level and name of notified area of IU (A)</p> Signup and view all the answers

What incentive does the GoI provide to each primary worker for conducting crop cutting experiments?

<p>Rs. 150 per CCE (D)</p> Signup and view all the answers

In case of discrepancies in the tender document, who will be liable for additional claims?

<p>Both the State/UT Government and the Insurance Company (D)</p> Signup and view all the answers

What is the Average Yield of a notified crop based on?

<p>Best five years out of the last seven years (B)</p> Signup and view all the answers

What should be avoided when notifying both irrigated and rainfed crops in the same IU?

<p>Moral hazard (C)</p> Signup and view all the answers

What happens in case of creation/reorganization of any new IU after tender finalization?

<p>New IUs are included with same terms (A)</p> Signup and view all the answers

What is the primary purpose of the grievance redressal system outlined in the content?

<p>To resolve complaints and queries of farmers. (C)</p> Signup and view all the answers

What is mandatory for all farmers to avail crop insurance starting from the Kharif 2017 season?

<p>Aadhaar Number. (B)</p> Signup and view all the answers

What documentation must be uploaded by enrolment channels except for banks enrolling loanee farmers?

<p>Bank Passbook and Crop Sowing Certificate. (A)</p> Signup and view all the answers

What is required from states before commencing the first crop season regarding agreements with insurance companies?

<p>A formal agreement based on a model shared by GoI. (D)</p> Signup and view all the answers

What is the maximum duration for tenders issued by states for the assurance of business to insurance companies?

<p>Three years. (A)</p> Signup and view all the answers

Which of the following is NOT a method for submitting farmer details to NCIP?

<p>Direct phone calls to the bank. (D)</p> Signup and view all the answers

Which detail is essential to be validated with bank records after digitizing farmer information?

<p>Farmers' Land Records. (A)</p> Signup and view all the answers

What must enrolment agencies do concerning farmers without an Aadhaar ID?

<p>Obtain proof of Aadhaar enrollment. (A)</p> Signup and view all the answers

What is a critical aspect of the Operational Guidelines concerning transparency in the tendering process?

<p>Mandatory disclosure of details in the tender document. (B)</p> Signup and view all the answers

Which of the following is NOT mentioned as a requirement of the insurance companies in the agreement with the states?

<p>Submitting annual financial reports. (D)</p> Signup and view all the answers

Which feature is essential for implementation of the PMFBY scheme by enrolment channels?

<p>Infrastructure and resources for key activities. (A)</p> Signup and view all the answers

What is not a particular detail included in the tender document as per the outlined process?

<p>Insurance company financial status. (C)</p> Signup and view all the answers

Which of the following is the responsibility of states regarding the tendering process?

<p>Issuing tender notices at least three months prior to the crop season. (A)</p> Signup and view all the answers

Which aspect must be regularly reviewed by banks concerning accounts of loanee farmers without Aadhaar?

<p>Enrollment for Aadhaar. (B)</p> Signup and view all the answers

Flashcards

Insurance Company (IC) Empanelment

Insurance companies joining and agreeing to the scheme's rules and guidelines to implement it (PMFBY).

PMFBY Implementation Infrastructure

Insurance companies must have the necessary resources and technology for PMFBY implementation.

Pilot studies and research

Testing new technologies to implement the scheme effectively.

Rural Farmer Outreach

Insurance companies need to make the scheme's products accessible to rural farmers.

Signup and view all the flashcards

CCE & Allied Activities

Personnel monitoring Crop Cycle Events and related processes.

Signup and view all the flashcards

Grievance Redressal Mechanism

Formal process for handling complaints, covering different levels (sub-district to national).

Signup and view all the flashcards

Claim Settlement Timelines

Insurance companies must pay farmers' claims on time as per guidelines.

Signup and view all the flashcards

Service Charge Payments

Insurance companies must pay service charges to Banks, CSC-SPV, and other Intermediaries.

Signup and view all the flashcards

Farmer Grievance Redressal

A process for resolving complaints and queries raised by farmers regarding crop insurance, using various channels like a portal and helpline, with timelines specified in guidelines.

Signup and view all the flashcards

Digital Farmer Credentials

Compulsory creation of digital profiles for farmers at various levels (PACS, branch, etc.) including data entry on a National Crop Insurance Portal (NCIP).

Signup and view all the flashcards

NCIP Data Digitization

Updating and validating farmers' information on NCIP with their bank records, Aadhaar, mobile, land, and crop details.

Signup and view all the flashcards

Required Documents for Enrolment

Farmers need to upload relevant documents (land ownership, bank details, crop sowing certificates) to complete enrollment, except for farmers enrolled through banks.

Signup and view all the flashcards

Premium Remittance Timelines

Banks need to remit farmers' premiums via a payment gateway linked to NCIP strictly within set timelines.

Signup and view all the flashcards

Aadhaar Mandate for Crop Insurance

Aadhaar is required for crop insurance enrollment from Kharif 2017 onwards.

Signup and view all the flashcards

Aadhaar Enrollment for Non-Aadhaar Holders

Farmers without Aadhaar can still enroll, subject to future procedures and government guidelines, based on notifications.

Signup and view all the flashcards

Aadhaar Mandate for Loanee Farmers

Banks must ensure Aadhaar enrollment for farmers taking crop loans under the Kisan Credit Card

Signup and view all the flashcards

State-Insurance Company Agreements

State governments and insurance companies must create an agreement outlining responsibilities and evaluations for the crop insurance program.

Signup and view all the flashcards

Compulsory 3-Year Tenders

States/UTs must issue tenders for 3 years to attract insurance companies and ensure their long-term commitment.

Signup and view all the flashcards

Model Tender Document

Updated guidelines for issuing tenders by states (details for tendering on crops, areas, and insurance details).

Signup and view all the flashcards

Tender Notice Circulation

Tender documents must be circulated to related parties and departments at least three months before the crop season.

Signup and view all the flashcards

Tender Transparency

All information in the Model Tender Document (e.g., crops, coverage) must be included, and alterations are prohibited after the tender phase.

Signup and view all the flashcards

Bid Documents Portal Access

Specific templates and information for bid documents are available on the NCIP, allowing for efficient management of data.

Signup and view all the flashcards

Seasonality Discipline

Strict timelines for various actions are set within the program, aligning with agricultural cycles and important dates.

Signup and view all the flashcards

Laddered TY

A type of threshold yield (TY) that increases gradually each year, reflecting a positive growth trend in average crop yield over time.

Signup and view all the flashcards

Average Yield Growth Rate

The average percentage change in crop yield over a specific period, calculated by considering yield changes across different years in the data. This helps assess crop production trends.

Signup and view all the flashcards

Threshold Yield (TY) for Each Year

The minimum yield a farmer must achieve for a particular crop in a specific year to be eligible for insurance payouts. It is determined based on the historical average yield growth rate and the indemnity level for that crop.

Signup and view all the flashcards

Indemnity Level

The percentage of the insured crop's value that the insurance company will pay out in case of crop loss, assuming the farmer's yield is below the threshold yield.

Signup and view all the flashcards

Premium Rate

The cost of insurance paid by the farmer, calculated based on the insured crop value, indemnity level, and other factors like the crop's risk profile and the policy duration.

Signup and view all the flashcards

Weighted Average Rate

The average premium rate of different insurance companies, considering the insured area of specific crops in each district as a weight. This helps determine the company with the best overall rate for each district.

Signup and view all the flashcards

Variable Threshold Yield

A type of TY that can be adjusted annually based on actual crop yields from the previous year. This adapts the TY to changing crop production patterns and ensures it stays relevant.

Signup and view all the flashcards

APR Grid

Table showing different premium rates (APR) for various indemnity levels and corresponding changes in the Threshold Yield (TY), allowing for adjustment based on TY fluctuations.

Signup and view all the flashcards

Tender Document Data Requirements

Before issuing a tender, the portal must include average yield data from the last 10 years, threshold yields, and other essential details in a prescribed format.

Signup and view all the flashcards

Notified scheme details

Tender documents must include specific details about the notified agricultural insurance schemes, including crops, insuring units (IUs), insurance coverage amounts, and indemnity levels.

Signup and view all the flashcards

Historical Average Yield Data

Ten years of historical average yield data for each notified crop at the notified insurance unit (IU) level.

Signup and view all the flashcards

Historical Coverage and Claim Data

Three-year historical claim and coverage data for each notified crop, at the IU level.

Signup and view all the flashcards

Crop Nomenclature & Conversion Factors

Include a list of crops with their names and potential conversion factors between different farming nomenclature (e.g., Paddy & Rice).

Signup and view all the flashcards

District-wise Crop and Risk Combination

Detail the distribution of districts, proposed crops, and their risk combinations (with sum insured values, indemnity levels, and sowing/harvesting dates).

Signup and view all the flashcards

Irrigated/Unirrigated District Classification

Classify districts based on irrigation facilities for accurate risk assessment.

Signup and view all the flashcards

Alternate Risk Management Models

List the alternate risk management models used by the State Governments/UTs.

Signup and view all the flashcards

Lowest weighted premium calculation

The lowest weighted premium is based on the insured area for notified crops in each district for the previous year.

Signup and view all the flashcards

New crop premium calculation

For new notified crops, weighting is based on 30% (major crops) or 10% (minor crops) of the average net sown area of the last 3 years.

Signup and view all the flashcards

E-tendering

The tendering process will be online.

Signup and view all the flashcards

Premium Rate Ceiling

States with high risk, high loss cost, can set a cap on premium rates for certain crops.

Signup and view all the flashcards

Two-step bidding

If a ceiling is set, bidding will happen in two steps, one for ceiling crops and one for others.

Signup and view all the flashcards

Crop rejection option

In case the offered premium rate doesn't align with the risk profile and historical claim data, the crop can be rejected from the notification list.

Signup and view all the flashcards

Sum Insured/Indemnity values

Sum insured and indemnity values for the current tender should be uploaded to the NCIP before the tender publication.

Signup and view all the flashcards

Notification duration

The period for which a crop is notified (e.g., rice) under the scheme. It should be at least one year long.

Signup and view all the flashcards

Risk cover options

The different types of insurance coverage offered under the scheme, like 'Basic Cover' and 'Add-on Covers'.

Signup and view all the flashcards

Individual farm assessment

Claims for localized crop damage or post-harvest losses are assessed individually at the farm level.

Signup and view all the flashcards

Past yield data

Historical yield data from Crop Cutting Experiments (CCEs) is used for risk analysis and premium calculations.

Signup and view all the flashcards

Crop coverage goal

The scheme aims to cover all major crops grown in all districts of a state or union territory.

Signup and view all the flashcards

Yield estimation methodology

A standard method must be in place to measure crop yields or correlate them with weather data.

Signup and view all the flashcards

Data provided to insurance companies

Information like historical yields, threshold yields, and crop acreage are given to insurance companies in a digital format.

Signup and view all the flashcards

NCIP role

The National Crop Insurance Portal (NCIP) is used to upload, approve, and accept data for risk assessment and claim processing.

Signup and view all the flashcards

Historical yield data in NCIP

The data uploaded on NCIP is used by the government for risk analysis and premium calculations.

Signup and view all the flashcards

Separate notification for irrigated and rainfed areas

If a state wants to notify irrigated and rainfed areas of a crop separately, they must collect separate CCE data and historical yield data.

Signup and view all the flashcards

Avoiding moral hazard

To avoid farmers taking advantage of the insurance system, irrigated and rainfed crops should not be notified in the same area.

Signup and view all the flashcards

Conversion factor for yield reporting

When reporting yield using a specific conversion factor (e.g., rice), the same factor must be used for average yield, threshold yield, and actual yield.

Signup and view all the flashcards

Liability for errors in data

Both the state government and the insurance company share liability for any additional claims arising due to errors in the data provided.

Signup and view all the flashcards

Notification flexibility

States can add or remove insurance areas within a district, but the change should not exceed 10% of the total.

Signup and view all the flashcards

Incentive for CCE workers

Primary workers involved in conducting CCEs receive an incentive to encourage the use of technology and ensure transparency in the process.

Signup and view all the flashcards

Loss Cost Calculation

A specific calculation made available on the NCIP for evaluating premium rates. It helps determine the cost of potential losses to crops.

Signup and view all the flashcards

Tender Process

The procedure for selecting insurance companies to implement the crop insurance scheme. It involves opening bids and selecting the most suitable company.

Signup and view all the flashcards

NCIP Document Management

A module on the NCIP platform where all relevant documents are uploaded, including tender documents, notices, and agreements.

Signup and view all the flashcards

Bid Document Conditions

Specific requirements and conditions outlined in the tender documents that insurance companies must adhere to.

Signup and view all the flashcards

L1 Bidder

The insurance company with the lowest bid or the most competitive offer for providing crop insurance.

Signup and view all the flashcards

Bid Withdrawal Penalty

A financial penalty imposed on an L1 bidder if they withdraw their bid after the tender opening.

Signup and view all the flashcards

L1 Rate Application

The rates quoted by the L1 bidder for different districts and crops are applied uniformly within the defined cluster.

Signup and view all the flashcards

CVC Guidelines

Central Vigilance Commission guidelines that govern bidding and negotiation procedures to ensure transparency and fairness

Signup and view all the flashcards

Agreement Termination Conditions

Specific circumstances and conditions that allow either the government or the insurance company to terminate the agreement.

Signup and view all the flashcards

Debarment/Blacklisting

A situation where an insurance company is barred from participating in the scheme due to misconduct or failure to meet requirements.

Signup and view all the flashcards

Solvency Ratio

The financial health of an insurance company, as measured by the proportion of their assets to liabilities.

Signup and view all the flashcards

De-empanelment

Removing an insurance company from the list of approved providers for the crop insurance scheme due to poor performance.

Signup and view all the flashcards

IU (Insurance Unit)

A defined geographic area for implementing the crop insurance scheme, typically a village or group of villages.

Signup and view all the flashcards

Major Crop Definition

Criteria for determining a crop as major, based on its area of cultivation relative to total crops in a district.

Signup and view all the flashcards

CCE (Crop Cutting Experiment)

A scientific method for assessing crop yield and production in a specific area.

Signup and view all the flashcards

Threshold Yield

The minimum yield level required to avoid receiving an insurance claim. It's calculated using the average yield multiplied by the indemnity level.

Signup and view all the flashcards

How is Threshold Yield calculated?

Threshold Yield is found by taking the average yield of the best five years out of the last seven years, multiplying it by the indemnity level, and dividing the result by five.

Signup and view all the flashcards

What is the purpose of a multi-year contract?

A multi-year contract allows for more stability in premium rates and threshold yields, reducing uncertainty for farmers and insurance companies over multiple seasons.

Signup and view all the flashcards

Fixed Threshold Yield

The Threshold Yield remains constant for all seasons within a contract period. Determined using the best five years out of the last seven years.

Signup and view all the flashcards

Laddered Threshold Yield

The Threshold Yield changes over the contract period based on the average yield growth rate of the last seven years. It's used when the average growth rate is positive.

Signup and view all the flashcards

Negative Growth Rate

When the average yield over the last seven years has decreased, indicating a declining trend.

Signup and view all the flashcards

What happens when the average yield growth rate is negative?

The Fixed Threshold Yield is applied to all the seasons in the contract period. The yield remains constant.

Signup and view all the flashcards

What happens when the average yield growth rate is positive?

The Laddered Threshold Yield is applied, where the yield is adjusted upward over the contract period based on the growth rate.

Signup and view all the flashcards

District Level Average Yield

The average yield of a specific crop across all insurance units (IUs) within a district.

Signup and view all the flashcards

How is District Level Average Yield used?

It is used to calculate the growth rate in yield over the last seven years, which determines whether a Fixed or Laddered Threshold Yield is applied.

Signup and view all the flashcards

Insurance Unit (IU)

A geographically defined area within a district, used for managing insurance risk and applying policies.

Signup and view all the flashcards

How is the lowest bid (L1) for insurance determined?

The lowest bid is determined based on the weighted average premium rate quoted by insurance companies, where the weights are determined by the last season's insured area of each crop.

Signup and view all the flashcards

What is the impact of increased insured area?

Increased insured area means the insurance company has to cover a larger number of farms, potentially leading to a higher premium rate.

Signup and view all the flashcards

Study Notes

Insurance Company Empanelment and Participation

  • Insurance companies accepting provisions, modalities, and guidelines of schemes must deploy resources for PMFBY.
  • Key activities include pilot studies for using new technology, widening scheme outreach (at least 10% increase in non-loanee coverage per season/district), deployment of staff for observing CCEs (using Agri App, CROPIC App, etc.), and allocation of resources for IEC activities (including stakeholder awareness and capacity building).
  • Detailed planning (submitted to Centre/State/UT) must precede each agricultural season.
  • Insurance companies must create a grievance redressal system (covering sub-district, district, state, and national levels), settle claims within timelines, and pay service charges to banks and intermediaries.
  • Standard operating procedures (SOPs) and manuals are provided by the GoI for awareness and capacity building, and for grievance redressal processes.

Bank and Other Channel Participation

  • Banks, CSCs, other channels, and insurance intermediaries must deploy resources to implement PMFBY, following scheme provisions and Operational Guidelines.
  • They create digital credentials for users, enter farmer details on the NCIP (using APIs or manually), and digitize insured farmer data (including Aadhaar, mobile, land, area, IUs, crops, and bank accounts).
  • Copying and uploading required documents (e.g., land, bank, and crop sowing certificates) is required by all channels, except bank-enrolled loanee farmers.
  • Farmers' premium must be remitted timely through NCIP's linked payment gateway.
  • Grievance redressal and resolution of farmer complaints are required within timelines outlined in the separate GoI SOP/Manual.

Aadhaar Information

  • Aadhaar is mandatory for crop insurance from the Kharif 2017 season.
  • Farmer enrollment under PMFBY is possible without Aadhaar if they enroll for Aadhaar and submit proof, following GoI notification 334 (Feb 8, 2017).
  • Banks must compulsorily verify Aadhaar numbers before granting crop loans (under Kisan Credit Card), prohibiting loanee farmer coverage without Aadhaar.

State-Insurance Company Agreements

  • State/UTs and Insurance Companies must sign agreements before the start of the first crop season, referencing a model agreement available on NCIP.
  • Agreement details include roles/responsibilities and performance evaluation metrics. Penalties are also part of the agreement.

Tendering and Notification Procedures

  • States/UTs are required to use a 3-year tender period to ensure longer-term commitments from Insurance Companies.

  • Individual State/UT approval from GoI is necessary for shorter tender periods (less than 3 years).

  • A model tender document is provided by the GoI.

  • A meeting of the SLCCCI is essential before the first crop season to finalize tender terms.

  • Tender documents must include details of crops, areas, sum insured, average yield, threshold yield (at IU level), and premium rates. Historical yield data (last 10 years) for all crops must be provided through the NCIP.

  • States/UTs must consider historical coverage and claim data (past 3 years).

  • The lowest weighted premium for a district is calculated using the insured area for notified, major, and minor crops from the last year, or immediately preceding year (if last year's data is missing).

  • An L1 bidder cannot withdraw bids after the tender opening. A penalty is applicable.

  • The state can stipulate a premium ceiling if risk profile or historical loss-cost justify it.

  • Insurance companies may challenge tender conditions.

  • States/UTs must notify the chosen crops, areas, and implementing agencies— following the "Area Approach." IUs are defined.

  • Risk coverage options (Basic, Add-on) must be clarified.

  • The SLCCCI may use CCE data from prior seasons with adequate sampling when evaluating crops. (consider aspects such as the existence of past yield data and the capacity for yield estimation).

  • Data are to be provided in a standardized format.

  • Additional IUs/de-notifying of existing IUs is possible (with maximum 10% deviation to already notified IUs for a crop at a district level).

  • Additional crops/IUs created after tender finalization are to be added to the scheme in the next season.

  • States/UTs must notify crops, areas, and implementing agencies

  • Indemnity levels (70%, 80%, 90%) are to be finalized for notified crops by State/UTs and the SLCCCI and must be included in tender documents.

  • Threshold Yield (based on past 7-year data and the chosen indemnity level) is to be included and remains unchanged for a given contract period unless new IUs are created or negative yield growth is observed.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Description

Test your knowledge about the essential activities required of empaneled Insurance Companies for the Pradhan Mantri Fasal Bima Yojana (PMFBY). This quiz covers important aspects such as coverage requirements, outreach strategies, and the grievance redressal mechanism. Evaluate your understanding of the responsibilities and protocols involved in the implementation of this agricultural insurance scheme.

Use Quizgecko on...
Browser
Open
Browser
Browser