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O.I.H.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 4292
TO BE ANSWERED ON THE 19TH AUGUST, 2025
ACCOUNTABILITY OF INSURANCE COMPANIES UNDER PMFBY
4292. SHRI BALYA MAMA SURESH GOPINATH MHATRE:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ(cid:874)ष एव ं (cid:873)कसान क(cid:227)याण म(cid:287)ं ी
be pleased to state:
(a) whether a significant number of farmers received compensation late or have not
received compensation, from the insurance companies under the Pradhan Mantri Fasal
Bima Yojana (PMFBY) despite suffering crop losses;
(b) whether an inordinate delay in the disbursement of compensation by the insurance
companies to farmers has come to the notice;
(c) if so, the number of farmers who did not receive compensation or whose claims were
rejected in the last three years, State-wise;
(d) whether the Government has taken any action to hold the insurance companies
accountable in these cases; and
(e) the corrective measures taken by the Government to ensure transparent and timely
disbursement of compensation?
ANSWER
MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
कृ(cid:874)ष एव ं (cid:873)कसान क(cid:227)याण रा(cid:207)य मं(cid:287)ी (SHRI RAMNATH THAKUR)
(a) to (c) : Pradhan Mantri Fasal Bima Yojana (PMFBY) is mainly implemented on ‘Area
Approach’ basis, where no intimation is required to be made by the farmers or the concerned
State Government. Admissible claims are worked out and paid directly to the insured
farmer’s account by the insurance companies through DigiClaim module on National Crop
Insurance Portal (NCIP), based on the yield data per unit area furnished to the insurance
company by the concerned State Government and claim calculation formula envisaged in
the Operational Guidelines of the scheme. Therefore, there is no rejection of the claim by
the insurance company in this case.
However, losses due to localized risks of hailstorm, landslide, inundation, cloud burst
& natural fire and post-harvest losses due to cyclone, cyclonic/unseasonal rains &
hailstorms are calculated on individual insured farm basis. Farmers are required to intimate
the loss to the concerned insurance company, State Government, financial
institutions/banks, online on National Crop Insurance Portal (NCIP) or PMFBY app etc.
Extent of loss and claims are assessed by a joint committee comprising representatives of
State Government and concerned insurance company. The insurance companies
scrutinise these loss intimations as per provisions of the Operational Guidelines of the
scheme and such claims can be rejected by insurance companies if they are in
contravention to guidelines.Majority of the claims are settled within the stipulated timelines under the Operational
Guidelines of the scheme i.e within 21 days of the receipt requisite yield data from the
concerned State Government, by the insurance companies. However, during the
implementation of PMFBY, some complaints/grievances were received in the past about
payment of claims which are primarily on account of (a) delay in providing State Government
share of subsidy (b) non-payment/delayed payment or under payment of claims on account
of incorrect/delayed submission of insurance proposals by banks (c) discrepancy in yield
data & consequent disputes between State Government and insurance companies etc. The
pending claims on account of these issue are settled after their resolution as per provisions
of the scheme. Out of the total claims of Rs. 1.88 lakh crore generated on NCIP till
30.06.2025, Rs. 1.83 lakh crore (97.34%) have already been paid to the farmers. The rest
of the claims is due on account of non-receipt of premium subsidy from State Government
non payment/delayed payment/under payment due to incorrect proposals by banks and
disputes in yield data etc.
State-wise details of number of farmer applications enrolled, claims paid and number
of farmers benefitted i.e. who received claims during last three years i.e. from 2022-23 to
2024-25 (upto Kharif 2024) are given in Annexure.
(d) & (e): Government has taken various steps to strengthen implementation of this scheme,
bring transparency and ensure timely settlement of claims:
Government has undertaken development of National Crop Insurance Portal (NCIP)
as a single source of data ensuring subsidy payment, co-ordination, transparency,
dissemination of information and delivery of services including direct online
enrolment of farmers, uploading/obtaining individual insured famer’s details for better
monitoring and to ensure transfer of claim amount electronically to the individual
farmer’s Bank Account.
In order to rigorously monitor claim disbursal process, a dedicated module namely
‘Digiclaim Module’ has been operationalized for payment of claims from Kharif 2022
onwards. It involves integration of National Crop Insurance Portal (NCIP) with Public
Finance Management System (PFMS) and accounting system of Insurance
Companies.
Delinking of Central Government share of premium subsidy from that of State
Governments has been implemented so that farmers can get proportionate claims
relating to the Central Government share.
Opening of ESCROW Account by the State Government concerned for deposit of
their premium share in advance as per provisions of the scheme has been made
mandatory w.e.f. Kharif 2025 season.
Also, towards leveraging technology in implementation of the scheme, various steps
like capturing of yield data/Crop Cutting Experiments (CCEs) data through CCE-Agri
App and uploading it on the NCIP, allowing insurance companies to witness the
conduct of CCEs, integration of State land records with NCIP etc. have already been
taken to improve timely settlement of the claims to farmers.
Provision of 12% penalty on delay in payment of claims by insurance company is
auto calculated on National Crop Insurance Portal (NCIP).Annexure
State-wise details of number of farmer applications enrolled, claims paid and number of farmers benefitted i.e. who
received claims during last three years i.e. from 2022-23 to 2024-25 (upto Kharif 2024) under PMFBY and RWBCIS
(As on 30.06.2025)
State 2022-23 2023-24 2024-25 (upto Kharif 2024) Total
Farmers Paid Applications Farmers Paid Applications Applications Paid Farmers Farmers Paid Applications
Applications Claims Benefitted Applications Claims Benefitted Benefitted Claims Benefitted Applications Claims Benefitted
Insured (In (In Crs.) (In No.) Insured (In (In Crs.) (In No.) (In No.) (In Crs.) (In No.) Insured (In (In Crs.) (In No.)
No.) No.) No.)
A & N Islands 171 - 7 187 0.02 86 150 - 39 508 0.02 132
Andhra Pradesh 1,23,87,364 546.73 6,29,229 1,31,29,912 - - 85,43,555 - - 3,40,60,831 546.73 6,29,229
Assam 4,89,981 19.98 26,240 7,93,506 58.21 99,561 7,61,951 8.89 20,817 20,45,438 87.07 1,46,618
Chhattisgarh 77,30,456 534.27 15,31,966 81,25,985 588.25 15,00,347 67,56,016 111.45 2,50,598 2,26,12,457 1,233.97 32,82,911
Goa 403 0.00 5 234 0.00 2 216 0.01 64 853 0.01 71
Haryana 14,51,535 2,518.66 7,52,993 1,02,67,729 265.23 25,15,329 94,27,621 262.63 17,24,053 2,11,46,885 3,046.52 49,92,375
Himachal Pradesh 2,67,618 69.06 1,39,516 2,78,055 131.70 1,07,964 1,09,605 0.00 31,257 6,55,278 200.77 2,78,737
Jammu & Kashmir 91,582 6.33 17,903 2,45,757 34.62 73,579 1,47,346 23.25 72,354 4,84,685 64.20 1,63,836
Jharkhand - - - - - - 25,48,512 - 31,825 25,48,512 - 31,825
Karnataka 27,18,915 2,386.06 18,40,873 30,77,232 3,349.62 23,60,145 30,48,823 1,163.81 10,25,637 88,44,970 6,899.50 52,26,655
Kerala 1,46,546 183.01 1,30,053 1,74,102 47.68 28,695 92,743 - - 4,13,391 230.69 1,58,748
Madhya Pradesh 1,77,32,045 1,049.47 36,88,740 1,77,95,826 776.16 39,43,417 97,17,150 - 32,64,868 4,52,45,021 1,825.63 1,08,97,025
Maharashtra 1,07,33,625 5,390.90 76,44,275 2,41,73,494 9,522.62 1,32,27,119 1,64,14,758 3,588.69 73,92,889 5,13,21,877 18,502.22 2,82,64,283
Manipur 4,066 1.62 3,395 5,073 2.00 4,170 4,619 - - 13,758 3.62 7,565
Meghalaya 337 0.01 68 38,569 14.04 14,398 47,749 9.49 18,952 86,655 23.54 33,418
Odisha 80,20,747 581.04 17,83,312 1,41,60,653 232.56 11,49,287 1,37,81,469 112.05 7,30,087 3,59,62,869 925.65 36,62,686
Puducherry 38,274 3.55 7,263 42,344 0.92 5,846 8,781 0.52 5,857 89,399 4.99 18,966
Rajasthan 3,90,71,541 4,360.35 1,16,18,304 3,90,16,977 3,062.62 83,11,462 2,15,31,458 0.00 27,20,571 9,96,19,976 7,422.96 2,26,50,337
Sikkim 5,025 - - 3,104 - 23 489 - - 8,618 - 23
Tamil Nadu 61,37,961 917.01 19,37,875 54,56,594 759.68 17,00,553 3,15,826 60.37 1,48,721 1,19,10,381 1,737.06 37,87,149
Tripura 3,56,201 2.03 20,515 3,65,378 1.88 10,905 8,231 0.46 3,554 7,29,810 4.36 34,974
Uttar Pradesh 42,83,991 977.14 12,51,998 60,68,754 467.70 11,84,713 50,72,290 279.42 14,41,310 1,54,25,035 1,724.26 38,78,021
Uttarakhand 2,82,068 207.94 1,99,847 2,27,291 347.07 1,71,124 1,28,244 153.47 92,045 6,37,603 708.48 4,63,016
Total 11,19,50,452 19,755.17 3,32,24,377 14,34,46,756 19,662.59 3,64,08,725 9,84,67,602 5,774.51 1,89,75,498 35,38,64,810 45,192.26 8,86,08,600
- Not Implemented/Very low figure
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