Executive Summary:
This document addresses complaints regarding non-payment or delayed payment of claims under the Pradhan Mantri Fasal Bima Yojana (PMFBY). It provides details on instances where insurance claims exceeded premiums, reasons for claim delays, and steps taken by the government to improve claim settlement. The document includes an annexure detailing state-wise claim ratios as of June 30, 2025, and highlights measures implemented up to the Kharif 2025 season.
Key Points / Main Content:
* **Claim Payments vs. Premiums:**
* Insurance companies have paid claims exceeding total premiums received in certain instances due to natural calamities.
* An Annexure provides year-wise and season-wise details of states/UTs where claims exceeded premiums.
* **Complaints and Reasons for Delay:**
* The government has received complaints about non-payment or delayed payment of PMFBY claims.
* Reasons for delays include:
* Delays in providing State Government share of subsidy.
* Non-payment/delayed payment or underpayment due to incorrect/delayed insurance proposals from banks.
* Discrepancies in yield data and disputes between State Governments and insurance companies.
* **Government Measures for Improvement:**
* Development of National Crop Insurance Portal (NCIP) for data management, subsidy payment, transparency, and direct online enrollment of farmers.
* Operationalization of Digiclaim Module for claim payments, integrating NCIP with Public Finance Management System (PFMS) and insurance companies' accounting systems (from Kharif 2022).
* Delinking of Central Government share of premium subsidy from that of State Governments.
* Mandatory opening of ESCROW accounts by State Governments for advance deposit of their premium share (w.e.f. Kharif 2025).
* Leveraging technology for yield data capture through CCEAgri App and integration of state land records with NCIP.
* Penalty of 12% is auto-calculated and levied on Insurance Companies through NCIP for delayed payments (w.e.f. Kharif 2024).
Impact Analysis:
* **Farmers:**
* Impact: Farmers are directly affected by claim settlement delays and amounts, impacting their financial stability after crop losses.
* Action Required: Farmers should ensure accurate and timely submission of insurance proposals through banks and utilize the NCIP for enrollment and information.
* **State Governments:**
* Impact: State Governments are responsible for timely subsidy payments and accurate yield data, which directly affects claim settlement.
* Action Required: State Governments must ensure timely release of their share of premium subsidy, resolve yield data discrepancies, and open ESCROW accounts for premium deposits (w.e.f. Kharif 2025).
* **Insurance Companies:**
* Impact: Insurance companies are responsible for timely claim settlement and face penalties for delays.
* Action Required: Insurance companies must integrate with the Digiclaim Module, ensure timely claim disbursal, and be prepared for potential penalties for delays (12% penalty w.e.f Kharif 2024).
* **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 underpayment of claims.
* **Central Government:**
* Impact: The Central Government is responsible for overseeing the PMFBY scheme and ensuring its effective implementation.
* Action Required: The Central Government needs to continue monitoring the scheme's progress, addressing complaints, and ensuring timely settlement of claims.
Key Entities Referenced
Pradhan Mantri Fasal Bima Yojana: A crop insurance scheme (PMFBY) implemented by the Government of India.
SHRI VIJAY KUMAR DUBEY: A member of LOK SABHA who raised a question regarding PMFBY claims.
SHRI RAMNATH THAKUR: The Minister of State for Agriculture and Farmers Welfare who provided the answer to the question.
National Crop Insurance Portal: A single source of data for crop insurance, ensuring subsidy payment, coordination, transparency, dissemination of information and delivery of services.
Public Finance Management System: A platform integrated with the National Crop Insurance Portal (NCIP) for payment of claims.
Digiclaim Module: A dedicated module operationalized for payment of claims which involves integration of National Crop Insurance Portal NCIP with Public Finance Management System PFMS and accounting system of Insurance Companies.
Crop Cutting Experiments: Method for capturing of yield data. The data is captured through CCEAgri App and uploaded it on the NCIP.
Karnataka: One of the states where the claim ratio under PMFBY was high during Kharif 2016 and Rabi 2016-17 seasons.
O.I.H.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 4230
TO BE ANSWERED ON THE 19TH AUGUST, 2025
COMPLAINTS OF NON-PAYMENT OF PMFBY CLAIMS
4230. SHRI VIJAY KUMAR DUBEY:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी
be pleased to state:
(a) whether the claims paid by the insurance companies exceed the total premiums
received under Pradhan Mantri Fasal Bima Yojana (PMFBY);
(b) if so, the details thereof along with the suitable examples;
(c) whether the Government frequently receives complaints from farmers regarding non-
payment of PMFBY claims or delayed payments;
(d) if so, the steps taken by the Government to resolve these issues; and
(e) whether special measures have been taken by the Government to address cases
where insurance companies fail to make payments within the prescribed time-limit and if
so, the details thereof?
ANSWER
THE 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) & (b): Crop insurance is a major risk mitigation tool for the benefit of farmers in the
event of non-preventable natural calamities. It may be noted that insurance is not an
investment. Insurance is all about spreading the risk spatially & temporally. Insurers save
premium in good seasons/years and pay high claims, if any, in bad years from the savings
made in the good years.
Claims in excess of 100% of premium received has been paid by insurance
companies in case of natural calamities during different seasons. Year-wise, season-wise
details of such States/UTs where insurance companies paid claims in excess of the total
premium collected is given at Annexure.
(c) to (e): As on 30.06.2025, out of the total reported claims of Rs.1.88 lakh crore since
beginning of the scheme in 2016, Rs.1.83 lakh crore (97.34 %) have already been paid to
the farmers. Majority of the claims are settled within the stipulated timelines under the
Operational Guidelines of the scheme 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 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.
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.
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.ANNEXURE
High Claim Ratio States under PMFBY (as on 30.06.2025)
Gross Premium Paid Claims Claim Ratio
Season State/UT Name
Rs. In Crore
Karnataka 837.89 1,227.72 147%
Kharif 2016 Kerala 8.57 17.92 209%
Tamil Nadu 9.98 10.60 106%
Andhra Pradesh 133.03 296.17 223%
Karnataka 482.98 866.12 179%
Rabi 2016-17
Kerala 24.58 25.81 105%
Tamil Nadu 1,161.25 3,635.62 313%
Chhattisgarh 289.49 1,312.19 453%
Haryana 298.62 808.35 271%
Madhya Pradesh 3,269.72 5,561.15 170%
Kharif 2017
Odisha 800.50 1,777.28 222%
Tamil Nadu 50.29 90.51 180%
Telangana 611.45 621.94 102%
Andhra Pradesh 146.60 211.71 147%
Chhattisgarh 72.39 79.19 109%
Rabi 2017-18
Odisha 19.01 42.84 225%
Tamil Nadu 1,222.98 2,006.78 165%
Andhra Pradesh 1,124.08 1,277.73 114%
Chhattisgarh 810.94 1,024.62 126%
Haryana 568.92 806.32 142%
Jharkhand 386.13 738.15 191%
Karnataka 1,380.60 1,934.66 140%
Kharif 2018
Kerala 12.81 15.36 120%
Odisha 1,114.83 1,129.89 101%
Rajasthan 2,417.83 2,680.78 111%
Tamil Nadu 67.31 112.16 167%
Uttarakhand 41.49 47.67 115%
Andhra Pradesh 296.66 614.69 207%
Jharkhand 11.30 13.00 115%
Karnataka 416.15 1,053.10 253%
Rabi 2018-19 Maharashtra 1,470.41 2,010.59 137%
Odisha 8.45 30.48 361%
Tamil Nadu 1,581.38 2,541.37 161%
Telangana 51.80 81.22 157%
Himachal Pradesh 7.12 8.63 121%
Kerala 39.08 54.09 138%
Madhya Pradesh 2,787.67 5,972.20 214%
Kharif 2019
Maharashtra 4,789.69 5,954.96 124%
Tamil Nadu 123.24 167.28 136%
Uttar Pradesh 721.97 786.55 109%
Chhattisgarh 77.26 638.67 827%
Rabi 2019-20 Kerala 33.42 33.82 101%
Odisha 10.85 99.26 915%
Haryana 963.51 1,007.36 105%
Kerala 45.01 81.38 181%
Kharif 2020
Madhya Pradesh 4,696.43 7,074.95 151%
Tamil Nadu 151.56 166.66 110%
Chhattisgarh 190.56 248.56 130%
Rabi 2020-21
Kerala 38.21 45.78 120%
Kharif 2021 Assam 71.50 85.63 123%Haryana 870.01 1,382.86 159%
Jammu & Kashmir 23.73 50.73 214%
Rajasthan 3,564.19 3,878.24 109%
Assam 74.14 170.78 253%
Rabi 2021-22 Chhattisgarh 203.67 402.18 197%
Kerala 58.12 64.62 111%
Haryana 956.86 2,004.59 212%
Kharif 2022
Kerala 64.59 100.06 155%
Haryana 350.37 514.07 148%
Kerala 73.36 82.96 113%
Rabi 2022-23 Maharashtra 1,098.18 1,346.60 123%
Odisha 9.97 11.63 118%
Rajasthan 2,607.05 2,670.70 103%
Himachal Pradesh 18.98 27.66 147%
Karnataka 2,559.74 3,159.37 124%
Kharif 2023
Maharashtra 7,815.18 7,894.65 102%
Meghalaya 10.59 14.04 138%
Chhattisgarh 279.84 390.44 140%
Rabi 2023-24
Uttarakhand 180.89 265.68 147%
Tamil Nadu 25.79 60.37 278%
Kharif 2024
Uttarakhand 82.42 153.47 186%
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