Page 75 - MGMG JAN to JUNE-2018 FINAL

Samrakshane - Workflow for Management of Crop Insurance
Government of Karnataka

Introduction

Agriculture in Karnataka is prone to variety of risks as more than 66% per cent of Agricultural area is
dependent on rain fed system. Karnataka has been continuously reeling under drought for six years and
in the last 16-year nature has been kind only three times. 78% farmers are small and marginal and
herefore suffer much more from such risk. Climate change is adding to the complexity of
the problem.

It is in this background that efficient Crop Insurance system acquires much more relevance and
importance. A well designed Crop Insurance system which is transparent and quick in providing relief
largely assures the farmers and helps in even catalyzing private investment/ capital formation in
Agriculture sector. The Government of India realized the short comings in NAIS and MNAIS (earlier
crop insurance schemes) and introduced Pradhan Mantri Fasal Bima Yojana with new features.

The coverage of Crop Insurance Schemes in Karnataka has been one of the lowest amongst other States.
The average number of farmers covered has not exceeded 15% in Kharif and 30-40% in Rabi with most
of the covered farmers as loanee farmers i.e. 65% of total insured farmers. The involvement of
agriculture and Horticulture Department in scheme implementation was minimal with its role largely
limited to issue of Crop Insurance notifications and release of some advertisement. District
administration involvement was also minimal.

The insurance agencies worked with banks and a very opaque and closed system existed with no
information on details of covered farmers, the lands or the crop was available with the State Govt. The
system of Crop Cutting Experiment (CCE) was neglected and opaque. Manual system ensured that yield
data came as late as three months after crop harvest was over with no way for any stakeholder including
farmers to verify or challenge the correctness of data. The claim settlement was delayed by months
together. There was no way for Government or farmers to know which all farmers got the claims and
when they actually got the money into their bank accounts.

The farmers had therefore lost all interest in Crop Insurance scheme. After understanding these short
comings, it was decided to work towards evolving an e-Governance solution called “Samarakshane”.

Objectives

? To create a transparent and farmer friendly system for enrolment, registering claims,
compensation calculation and payment of compensation to farmers under the Crop Insurance
Schemes.

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