Home India AGRICULTURE AND FARMERS WELFARE Parliament Question: Complaints from Farmers of Karnataka re...
Date: 2025-12-16 Category: Not Applicable State: Union Government Country: India

Parliament Question: Complaints from Farmers of Karnataka regarding Crop Insurance

Issued by AGRICULTURE AND FARMERS WELFARE · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This document is the response to Lok Sabha Unstarred Question No. 2588 regarding complaints from farmers of Karnataka regarding crop insurance. It details government actions taken to address complaints related to the Pradhan Mantri Fasal Bima Yojana (PMFBY), including measures for timely claim settlement, accurate crop damage assessment, and increased transparency. The response includes information on the implementation of new technologies like YES-TECH and WINDS. The answer was given on December 16th, 2025. **Key Points / Main Content** * **Claim Settlement under PMFBY:** * Claims are generally settled within 21 days of receiving required yield data from the State Government. * Complaints mainly arise due to delays in subsidy from State Governments, incorrect/delayed insurance proposals by banks, and yield data discrepancies. * Pending claims are resolved based on scheme provisions after issue resolution. * **Grievance Redressal:** * Krishi Rakshak Portal and Helpline (KRPH) and toll-free number 14447 were developed for grievance redressal. * Fixed timelines are established for resolving issues. * **Crop Damage Assessment:** * PMFBY primarily uses an 'Area Approach' with comprehensive risk coverage. * Claims are calculated and paid directly to farmers through the DigiClaim module. * Localized losses are assessed by a joint committee. * **Technology Implementation:** * YES-TECH (Yield Estimation System Based on Technology) helps in yield assessment using remote sensing. * WINDS (Weather Information Network and Data System) provides hyper-local weather data for drought/disaster management and accurate weather prediction. * **Transparency and Scheme Improvement:** * The National Crop Insurance Portal (NCIP) serves as a single data source for subsidy payment and coordination. * The 'Digiclaim Module' monitors claim disbursal. * Penalties are levied for delayed payments by insurance companies or State Governments (12%). * Tranche-based claim payments are initiated from 2025-26. * Leveraging technology like the CCE-Agri App. * **Awareness Campaigns:** * 'Crop Insurance Week/Fasal Bima Saptah' and 'Fasal Bima Pathshalas' are organized for farmer education. * Nationwide Doorstep Crop Insurance Policy/receipt Distribution drive – ‘Meri Policy Mere Haath' has been implemented. * **Karnataka PMFBY Details** * District-wise details of coverage and claims paid under PMFBY in Karnataka during last five years i.e. from 2020-21 to 2024-25 are given in Annexure. **Impact Analysis** **Stakeholder: Farmers** * **Impact:** Benefits from timely claim settlements, improved grievance redressal, and transparent processes. They gain access to awareness programs and direct claim payments. * **Action Required:** Utilize available portals (KRPH, NCIP), helplines (14447), and participate in awareness programs to understand the scheme and ensure timely and accurate claim processing. **Stakeholder: State Governments** * **Impact:** Responsible for timely subsidy disbursement, accurate yield data provision, and collaboration in crop damage assessment. * **Action Required:** Ensure timely State Government share of subsidy to avoid penalties and collaborate with insurance companies to resolve data discrepancies. **Stakeholder: Insurance Companies** * **Impact:** Expected to settle claims within stipulated timelines, participate in joint assessment committees, and integrate with NCIP and PFMS. * **Action Required:** Process claims promptly, address grievances, and ensure accurate claim processing based on provided data and scheme guidelines. **Stakeholder: Banks** * **Impact:** Need to ensure accurate and timely submission of insurance proposals. * **Action Required:** Submit insurance proposals correctly and on time to facilitate claim processing for farmers.

Key Entities Referenced

Pradhan Mantri Fasal Bima Yojana (PMFBY): The primary crop insurance scheme discussed in the document, aimed at providing insurance coverage and financial support to farmers in case of crop losses. National Crop Insurance Portal (NCIP): A digital platform utilized for the implementation of PMFBY, facilitating subsidy payment, data management, coordination, and dissemination of information. Karnataka: The specific state from which complaints regarding crop insurance are being addressed in the Lok Sabha question. YES-TECH (Yield Estimation System Based on Technology): A technology-driven initiative under PMFBY for accurate crop yield estimation through remote sensing. WINDS (Weather Information Network and Data System): A network of Automatic Weather Stations (AWS) & Automatic Rain-Gauges (ARG) for collecting hyper-local weather data under PMFBY.
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GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE LOK SABHA UNSTARRED QUESTION NO. 2588 TO BE ANSWERED ON THE 16TH DECEMBER, 2025 COMPLAINTS FROM FARMERS OF KARNATAKA REGARDING CROP INSURANCE 2588. SHRI GOVIND MAKTHAPPA KARJOL: Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ(cid:874)ष एवं (cid:873)कसान क(cid:227)याण म(cid:287)ं ी be pleased to state: (a) whether the Government has received any complaints from farmers on crop insurance claims in the year 2024-25 and 2025-26 in the country; (b) if so, the details thereof and number of such complaints received from Karnataka; (c) whether the Government has taken strict action on insurance companies and concern officials in this issue, if so, the details thereof; (d) the manner in which the Government is undertaking accurate crop damage assessment; (e) the details of crop insurance provided to the farmers in Karnataka during the last five years, district-wise; and (f) the details of the steps taken by the Government to disburse crop claims timely and quickly to the farmers? ANSWER THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE कृ(cid:874)ष एवं (cid:873)कसान क(cid:227)याण रा(cid:207)य म(cid:287)ं ी (SHRI RAMNATH THAKUR) (a) to (c): As prescribed in the Operational Guidelines of the Pradhan Mantri Fasal Bima Yojana (PMFBY), majority of the claims are settled within the stipulated timelines i.e within 21 days of the receipt of requisite yield data from the concerned State Government, by the insurance companies. However, during the implementation of PMFBY, some complaints 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 StateGovernment and insurance companies etc. The pending claims because of these issues are settled after their resolution as per provisions of the scheme. To further improve the grievance redressal mechanism, Krishi Rakshak Portal and Helpline (KRPH) has been developed. A single Pan-India toll free number 14447 has been deployed and linked to the insurance companies’ database, where farmers can raise their grievances/issues. Timelines to resolve these grievances/issues has also been fixed. (d): The PMFBY is mainly implemented on ‘Area Approach’ basis and comprehensive risk coverage for crops of farmers against all non-preventable natural risks from pre-sowing to post-harvest stages of the crops at very minimum premium for the farmers is provided under the scheme. Admissible claims/crop loss, in this case, 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. 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. The extent of loss and claims in such case are assessed by a joint committee comprising representatives of State Government and concerned insurance company within stipulated time frame under the Operational Guidelines of the scheme. Further, following technologies for Objective Crop Damage & Loss Assessment and transparency have also been implemented w.e.f. 2023-24 under the scheme: i. YES-TECH (Yield Estimation System Based on Technology) for gradual migration to Remote-Sensing based yield estimation to help assess yields as well as fair and accurate Crop Yield Estimation. This initiative has been launched for paddy & wheat crops from Kharif 2023 wherein 30% weightage to yield estimation will mandatorily be assigned to YES-TECH derived yield. Soybean crop has been added from Kharif 2024 season. ii. WINDS (Weather Information Network and Data System) for setting up of Network of Automatic Weather Stations (AWS) & Automatic Rain-Gauges (ARG) to the tune of 5 times of existing network for collecting hyper-local weather data at GP & Block level. This will be fed into a National database with interoperability & sharing of data in coordination with India Meteorological Department (IMD). WINDS provides data not only for YES-TECH but also for effective drought & disaster management, accurate weather prediction and offering better parametric insurance products. (e): District-wise details of coverage and claims paid under PMFBY in Karnataka during last five years i.e. from 2020-21 to 2024-25 are given in Annexure.(f): Government has taken various steps to strengthen implementation of this scheme all over India to 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 enrollment 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 NCIP with Public Finance Management System (PFMS) and accounting system of Insurance Companies to provide timely & transparent processing of all claims.  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.  As per the Operational Guidelines of PMFBY, in case payment is not made timely by Insurance Company, a penalty of 12% is auto-calculated and levied through National Crop Insurance Portal (NCIP) w.e.f. Kharif 2024.  Similarly, if State Government delayed its premium subsidy from stipulated time period, a penalty of 12% is to be paid by them also.  Tranche based claims payment has been initiated from 2025-26.  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 & 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.  The Government has actively supported the awareness activities being carried out by the States, implementing Insurance Companies, financial institutions, and Common Service Centres (CSCs) network to disseminate key features of PMFBY amongst farmers and members of Panchayati Raj Institutions (PRIs).  Structured awareness campaign ‘Crop Insurance Week/Fasal Bima Saptah’ has been initiated by the Ministry of Agriculture and Farmers Welfare since Kharif 2021 season onwards. Along with this, ‘Fasal Bima Pathshalas’ are also being organized at village/GP level for knowledge building of farmers on various aspects of scheme implementation.  Government had also organized a nationwide Doorstep Crop Insurance Policy/receipt Distribution mega drive – ‘Meri Policy Mere Haath’. Hard copies of crop insurance policy receipts are distributed to farmers enrolled under PMFBY through special camps at gram Panchayat/village level.Annexure PMFBY & RWBCIS: District Wise details of coverage and claims paid in Karnataka from 2020-21 to 2024-25 (as on 31st October, 2025) District Application Area Sum Premium Paid Farmers Application Enrolled Insured Insured Collected Claims Benefitted from Farmers (In No.) (In Lakh Ha.) (Rs. In Crore) (In No.) Bagalkot 2,01,427 2.30 1,382.15 42.54 295.75 97,704 Ballari 75,844 0.72 455.57 11.03 44.67 28,428 Belagavi 3,28,700 2.73 1,716.61 53.55 361.22 1,45,225 Bengaluru Rural 41,526 0.17 96.14 2.81 10.93 16,605 Bengaluru Urban 3,091 0.01 6.78 0.20 1.07 1,287 Bidar 12,94,302 8.38 3,151.56 62.90 232.26 6,08,296 Chamarajnagar 77,990 0.40 155.42 3.34 15.62 27,694 Chikkaballapur 2,10,129 0.98 587.00 15.23 151.21 1,43,757 Chikkamagaluru 2,48,281 1.34 1,220.73 58.99 278.67 1,41,991 Chitradurga 5,81,527 6.94 3,443.35 80.15 559.91 2,48,212 Dakshinakannada 8,57,238 2.22 2,458.46 122.82 880.55 5,17,156 Davangere 2,67,241 2.00 1,414.33 43.70 335.32 1,71,939 Dharwad 8,62,748 9.05 3,990.59 114.10 534.18 4,28,555 Gadag 10,81,988 13.25 5,781.39 144.39 1,119.02 7,25,367 Hasan 5,09,126 2.22 970.31 28.97 186.89 2,55,647 Haveri 14,54,731 11.01 6,186.39 147.99 1,256.37 10,82,578 Kalaburgi 6,76,778 7.95 3,440.31 72.57 730.45 7,99,443 Kodagu 14,545 0.09 55.09 2.57 9.95 7,596 Kolar 93,469 0.45 233.68 8.78 35.66 50,272 Koppal 5,80,117 6.38 2,815.63 61.09 301.81 2,65,259 Mandya 2,95,869 0.82 307.24 5.77 71.53 1,78,456 Mysuru 41,662 0.18 74.67 1.72 7.07 15,356 Raichur 3,36,102 4.00 2,347.83 52.73 153.97 93,764 Ramanagara 60,998 0.31 184.92 7.77 57.90 37,583 Shivamogga 4,37,205 2.24 2,304.14 98.83 496.72 2,99,067 Tumakuru 6,46,346 3.84 2,099.58 63.28 250.80 3,13,788 Udupi 62,774 0.16 181.25 8.86 55.70 33,702 Uttarkannada 7,57,386 2.37 2,006.07 76.08 305.18 4,21,818 Vijayanagara 1,81,837 1.64 909.24 18.77 219.80 1,40,485 Vijayapura 6,54,244 9.37 5,452.65 162.54 1,015.20 3,60,493 Yadgiri 59,865 0.73 403.58 10.15 30.79 29,406 Total 1,29,95,086 104.24 55,832.68 1,584.22 10,006.16 76,86,929 ******

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