**Executive Summary:**
This document addresses questions raised in Lok Sabha regarding the Pradhan Mantri Fasal Bima Yojana (PMFBY), including claim settlement percentages, the use of technology for yield assessment, crop damage by wild animals, and the utilization of vacant agricultural land. It outlines the government's responses concerning claim settlement status, technological interventions for yield estimation, provisions for crop damage by wild animals, and initiatives to support farmers in utilizing their land during lean seasons. The implementation of YESTECH for yield estimation started with Kharif 2023 for paddy and wheat crops and Kharif 2024 for soybean crops.
**Key Points / Main Content:**
* **Claim Settlement under PMFBY:**
* The majority of claims are settled within 21 days of receiving the required yield data from State Governments.
* Delays in claim payments have occurred due to delays in State Government subsidy payments, incorrect insurance proposals by banks, and discrepancies in yield data.
* Out of reported claims of Rs. 1.88 lakh crore, Rs. 1.83 lakh crore (97.34%) has been paid.
* Pending claims are due to non-receipt of premium subsidy from State Governments, incorrect proposals by banks, and disputes in yield data.
* **Technology for Yield Assessment:**
* YESTECH (Yield Estimation System Based on Technology) is being implemented for remote sensing-based yield estimation.
* YESTECH uses inputs like remote sensing data and soil moisture data.
* Launched for paddy and wheat crops from Kharif 2023 and for soybean crop from Kharif 2024.
* 10 major States have adopted YESTECH for implementation.
* **Crop Damage by Wild Animals:**
* PMFBY covers crop damage due to non-preventable natural risks.
* Losses due to wild animals, considered preventable, were not covered initially.
* States can now notify losses by wild animals on individual assessment as an add-on cover at their own cost, following a detailed protocol in the Operational Guidelines.
* **Utilization of Vacant Agricultural Land:**
* The Government has various initiatives/schemes such as Bee-Keeping, Bamboo Plantation, Livestock rearing fisheries etc. to provide income support to farmers during lean seasons.
**Impact Analysis**
**Stakeholder: Farmers**
* *Impact:* Farmers benefit from timely settlement of insurance claims, technological advancements in yield assessment, and potential compensation for crop damage by wild animals (if the State Government opts for the add-on cover). They also receive support for income generation during lean seasons.
* *Action Required:* Farmers should ensure accurate submission of insurance proposals through banks and be aware of State-specific provisions for compensation related to wild animal damage.
**Stakeholder: State Governments**
* *Impact:* State Governments are responsible for providing premium subsidies, ensuring timely and accurate yield data, and can choose to provide additional coverage for crop damage by wild animals at their own cost.
* *Action Required:* State Governments need to ensure timely release of premium subsidies, resolve yield data discrepancies, and decide whether to implement the add-on cover for wild animal damage. They must also adopt and implement YESTECH for accurate yield estimation.
**Stakeholder: Insurance Companies**
* *Impact:* Insurance companies are responsible for settling claims within the stipulated timelines based on yield data provided by State Governments.
* *Action Required:* Insurance companies must ensure timely claim settlement upon receiving accurate yield data and adherence to the scheme's operational guidelines.
**Stakeholder: Banks**
* *Impact:* Banks play a role in submitting insurance proposals on behalf of farmers.
* *Action Required:* Banks need to ensure accurate and timely submission of insurance proposals to avoid delays or rejection of claims.
Key Entities Referenced
Pradhan Mantri Fasal Bima Yojana PMFBY: A government-sponsored crop insurance scheme in India aimed at providing financial support to farmers suffering crop losses due to natural calamities.
Ministry of Agriculture and Farmers Welfare: The Indian government ministry responsible for agriculture and farmers' welfare.
Uttar Pradesh: A state in northern India.
Bihar: A state in eastern India.
Madhya Pradesh: A state in central India.
Odisha: A state in eastern India.
Mahalanobis National Crop Forecasting Centre MNCFC: An organization under the Department of Agriculture & Farmers Welfare involved in crop forecasting and yield estimation using technology.
YESTECH Yield Estimation System Based on Technology: A technology-driven system for estimating crop yield, utilizing remote sensing and other data inputs.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 1602
TO BE ANSWERED ON THE 29th July, 2025
ASSESSMENT OF CLAIMS AND COMPENSATION UNDER PMFBY
1602 Dr. Indra Hang Subba:
Shri Virendra Singh:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी
be pleased to state:
(a) the percentage of the settlement of agriculture insurance claims under Pradhan Mantri
Fasal Bima Yojana (PMFBY) across the country, State/UT-wise;
(b) whether modern technology is being used for quick and accurate assessment of crop
yield/loss, if so, the details thereof;
(c) whether wild animals like nilgai, banroach, wild boar, porcupine and cattle etc. cause
heavy damage to the crops of farmers;
(d) whether the Government proposes to provide compensation to the farmers for the
damage caused to their crops by wild animals through PMFBY and if so, the quantum of
compensation paid and if not, the reasons therefor;
(e) whether many farmers are unable to use their agricultural land due to lack of resources
and information and thus their farm remain vacant from April to July in many States including
Uttar Pradesh, Bihar, Madhya Pradesh and Odisha; and
(f) whether the Government has any scheme so that their land can be used at the same
time and farmers can get benefits, if so, the details thereof and if not, the reasons therefor?
ANSWER
MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
कृ िष एवं िकसान क(cid:670)ाण रा(cid:475) मं(cid:361)ी (SHRI RAMNATH THAKUR)
(a) : 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 accountof 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 reported claims of Rs. 1.88 lakh crore so far, 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 Govt,, non payment/delayed
payment/under payment due to incorrect proposals by banks and disputes in yield data etc.
(b) : In order to bring in more efficiency and transparency in yield assessment as well as
keeping in view various difficulties like increase in number of Crop Cutting Experiments
(CCEs) due to reduction in unit area of insurance to village/village panchayat, shortage of
manpower/infrastructure with States, short window available for conducting of CCEs,
manual data collection and transmission resulting in delay in calculation and settlement of
claims; it has been decided to infuse technology in estimation of yield. Accordingly, based
on the different pilot studies, conducted through Mahalanobis National Crop Forecasting
Centre (MNCFC) under the Department of Agriculture & Farmers Welfare, it has been
decided to implement YES-TECH (Yield Estimation System Based on Technology) for
gradual migration to Remote-Sensing based yield estimation. Under YESTECH, various
models using various inputs like remote sensing data, soil moisture data etc., have been
developed and implemented. This initiative has been launched for paddy & wheat crops
from Kharif 2023 and for soybean crop from Kharif 2024 wherein 30% weightage to yield
estimation is to be mandatorily be assigned to YES-TECH derived yield. 10 major States
have adopted the YES-TECH for implementation in their respective States.
(c) & (d): PMFBY provides for comprehensive risk insurance against crop damage due to
non-preventable natural risks from pre-sowing to post-harvest for the crops/areas notified
by the concerned State Government. The losses to crops due to wild animals, being
preventable in nature, were therefore not covered earlier. However, at the request of
Ministry of Environment, Forest and Climate Change and State Governments, States have
been allowed to notify the losses by wild animals on individual assessment as add on cover
at the cost of State Government. Detailed protocol for such coverage has been given in the
Operational Guidelines of the scheme.
(e) & (f): Govt. has taken various initiatives/schemes such as Bee-Keeping, Bamboo
Plantation, Live-stock rearing & fisheries etc. to provide income support to farmers in
addition to their regular farming activities during lean seasons.
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