What happened: PMFBY/RWBCIS loss assessment rules and NCIP-driven settlement
The Government sets out crop loss assessment methods for PMFBY and RWBCIS and connects them to claim-settlement mechanisms through the National Crop Insurance Portal (NCIP) and the Digiclaim Module. The stated aim is timely, transparent processing of claims and subsidy payments, including automated penalties and escrow-linked premium deposits.
Background and earlier position: area approach claims vs individualized assessment for certain risks
PMFBY and RWBCIS are implemented mainly on an “Area Approach” basis for insurance claims, where claims are calculated on land parcel area using the shortfall in actual yield against threshold yield. Yield estimates are based on Crop Cutting Experiments (CCE) and, where applicable, YES-TECH technology-based yield estimation, as per the scheme Operational Guidelines.
For localized risks such as hailstorm, landslide, inundation, cloud burst, and natural fire, and for post-harvest losses due to cyclone, cyclonic/unseasonal rains, and hailstorms, the schemes use an individual insured farm basis. For such localized and post-harvest perils, a joint committee with representatives of the State Government and the concerned insurance company assesses the extent of loss and claim amount within the stipulated timeframe under Operational Guidelines.
For disaster relief, loss assessment follows the National Policy on Disaster Management (NPDM) framework. States use the State Disaster Response Fund (SDRF), and for disasters of “severe nature,” states follow prescribed procedures for additional assistance from the National Disaster Response Fund (NDRF). NDRF assessment includes evaluation based on an Inter-Ministerial Central Team (IMCT) visit, and SDRF loss assessment uses a joint field survey by Revenue and Agriculture officials. SDRF-related input subsidy becomes payable only when assessed crop loss is 33% or more; SDRF and NDRF assessments are limited to natural calamities in specific areas and are not regular district-level crop loss assessments.
Related current affairs
- Digital systems for timely and transparent PMFBY claim settlement: NCIP, Digiclaim, ESCROW, and penalty for delays
- PMFBY digital and governance framework: NCIP, DigiClaim, land-record integration, CCE Agri app, CROPIC and grievance redressal
- Use of Crop Loss Assessment App (CLAP) made mandatory under PMFBY for localized crop loss assessment
- Restructured Weather-Based Crop Insurance Scheme (RWBCIS): design, payout triggers and coverage for fruits/vegetables/plantation crops
- PMFBY premium rates and government subsidy sharing: farmer contribution norms and NE/Himalayan coverage
- Implementation of YES-TECH (Technology-based yield estimation) for objective crop damage assessment under PMFBY