Home India Ministry of Agriculture and Farmers Welfare Parliament Question: Crop Insurance Claims under PMFBY...
Date: 2025-07-29 Category: Not Applicable State: Union Government Country: India

Parliament Question: Crop Insurance Claims under PMFBY

Issued by Ministry of Agriculture and Farmers Welfare · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary:** This document presents the response of the Minister for Agriculture and Farmers Welfare to questions raised in Lok Sabha regarding crop insurance claims under the Pradhan Mantri Fasal Bima Yojana (PMFBY) from 2022-23 to 2024-25 (up to Kharif 2024). It details the number of claims made, disbursed, and pending, along with the reasons for delays and steps taken to ensure timely settlement. The information was presented to the House on July 29, 2025. **Key Points / Main Content:** * **Claims Status (2022-23 to 2024-25):** * Total claims reported: Rs. 50,474.74 crore. * Claims paid: Rs. 45,192.26 crore to 926.59 lakh farmer applications. * Claims pending: Rs. 5,282 crore (10.5%). * **Reasons for Pending Claims:** * Delay in State Government subsidy share. * Incorrect/delayed insurance proposals from banks. * Discrepancies in yield data and disputes between State Governments and insurance companies. * **Government Steps for Timely Settlement:** * **National Crop Insurance Portal (NCIP):** A single data source for subsidy payment, coordination, transparency, information dissemination, and service delivery. Includes direct online enrollment, individual farmer details, and electronic transfer of claim amounts. * **Digiclaim Module:** Operationalized from Kharif 2022 for timely claim payments, integrating NCIP with Public Finance Management System (PFMS) and insurance company accounting systems (effective Kharif 2024). * Central Government subsidy share delinked from State Government share to ensure proportionate claim disbursement. * Technology leveraged for yield data capture via CCE Agri App, NCIP integration of State land records, and insurance company participation in Crop Cutting Experiments (CCEs). * Penalty of 12% on delayed payments by insurance companies, auto-calculated on NCIP. * Mandatory ESCROW Account for State Government premium share deposits (w.e.f. Kharif 2025). * **Objective Crop Damage/Loss Assessment Technologies (w.e.f. 2023-24):** * **YESTECH (Yield Estimation System Based on Technology):** Remote sensing-based yield estimation, launched for paddy and wheat (Kharif 2023) with 30% weightage to YESTECH-derived yield. Soybean added from Kharif 2024. * **WINDS (Weather Information Network and Data System):** Network of Automatic Weather Stations (AWS)/Automatic Rain Gauges (ARG) for hyperlocal weather data collection, feeding into a national database coordinated with IMD. Used for YESTECH, drought management, weather prediction, and parametric insurance products. **Impact Analysis:** **Farmers:** * *Impact:* Farmers are the primary beneficiaries of the PMFBY scheme. Timely claim settlement directly impacts their financial stability after crop losses. Delays affect their ability to reinvest in subsequent cropping seasons. * *Action Required:* Ensure accurate and timely submission of insurance proposals through banks. Utilize online enrollment via NCIP. **State Governments:** * *Impact:* Responsible for contributing their share of the premium subsidy and ensuring accurate yield data. Delays in subsidy payments contribute to pending claims. * *Action Required:* Ensure timely release of State Government subsidy share. Resolve yield data discrepancies with insurance companies. Open ESCROW accounts for premium share deposits (w.e.f. Kharif 2025). **Insurance Companies:** * *Impact:* Responsible for processing and disbursing claims. Delays can result in penalties. * *Action Required:* Integrate with the Digiclaim module for claim processing. Ensure timely settlement of claims to avoid penalties. Participate in CCEs. **Banks:** * *Impact:* Banks act as intermediaries for submitting insurance proposals. Incorrect or delayed submissions can lead to claim pendency. * *Action Required:* Ensure accurate and timely submission of insurance proposals on behalf of farmers. **Central Government:** * *Impact:* Oversees the implementation of PMFBY, provides subsidy, and monitors claim disbursal. * *Action Required:* Continue to develop and refine NCIP and Digiclaim modules. Enforce penalty provisions for delayed claim payments. Monitor the effectiveness of YESTECH and WINDS.

Key Entities Referenced

PM Fasal Bima Yojana: A crop insurance scheme in India, also referred to as PMFBY in the document. The document discusses claims made and disbursed under this scheme. Ministry of Agriculture and Farmers Welfare: The Indian government ministry responsible for agriculture and farmers' welfare. The document originates from this ministry. Lok Sabha: The lower house of the Parliament of India, where the starred question related to crop insurance claims was raised. SHRI SHIVRAJ SINGH CHAUHAN: The Minister for Agriculture and Farmers Welfare who provided the answer to the Lok Sabha question. National Crop Insurance Portal: A centralized online platform (NCIP) for data related to crop insurance, subsidy payments, and claim processing under PMFBY. Public Finance Management System: A platform (PFMS) integrated with the National Crop Insurance Portal to facilitate timely and transparent processing of insurance claims. Weather Information Network and Data System: A network (WINDS) for setting up weather stations to collect hyperlocal weather data for various applications, including yield estimation and disaster management. Andhra Pradesh: A state in India mentioned in the annexure regarding State Wise Claims Farmer applications and Farmers Benefitted from 202223 to Kharif 202425
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GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE LOK SABHA STARRED QUESTION NO. 127 TO BE ANSWERED ON THE 29TH JULY, 2025 CROP INSURANCE CLAIMS UNDER PMFBY *127. SHRI ANTO ANTONY: SHRI TANUJ PUNIA: 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 details and total number of crop insurance claims made by farmers under the PM Fasal Bima Yojana (PMFBY) in each State/UT during the last three years, State/UT- wise; (b) the total number of claims disbursed and the total amount paid to farmers, State/UT- wise; (c) the number of claims pending for disbursal and the reasons for such delays, State/UT-wise; and (d) the details of steps being taken to ensure timely settlement of pending claims ? ANSWER THE MINISTER FOR AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी (SHRI SHIVRAJ SINGH CHAUHAN) (a) to ( d) : A statement is laid on the Table of the House.STATEMENT REFERRED TO PART (a) TO (d) OF LOK SABHA STARRED QUESTION NO. 127 FOR 29TH JULY, 2025 REGARDING CROP INSURNACE CLAIMS UNDER PMFBY. (a) to (c) : During 2022-23 to 2024-25 (upto Kharif 2024), claims of Rs. 50,474.74 crore has been reported under Pradhan Mantri Fasal Bima Yojana (PMFBY), out of which Rs. 45,192.26 core has been paid already to 926.59 lakh farmer applications. Further, Rs. 5,282 crore (10.5%) is pending for payment. The major reasons for pendency of these claims are (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. During Kharif 2022-23 to Kharif 2024, about 69% claims have been settled within 30 days from reporting of yield by States/crop loss notification by State or intimation by farmers. . (d) : 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 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 National Crop Insurance Portal (NCIP) with Public Finance Management System (PFMS) and accounting system of Insurance Companies to provide timely & transparent processing of all claims w.e.f. Kharif 2024.  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.  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 theconduct 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).  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. Following technologies for Objective Crop Damage & Loss Assessment and transparency have also been implemented recently 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.Annexure PMFBY & RWBCIS: State Wise Claims Farmer applications and Farmers Benefitted from 2022-23 to Kharif 2024-25 Farmers Applications Insured (In No.) Farmers Benefitted (In No.) States 2022-23 2023-24 2024-25 2022-23 2023-24 2024-25 A & N Islands 171 187 150 7 86 39 Andhra Pradesh 1,23,87,364 1,31,29,912 85,43,555 6,29,229 - - Assam 4,89,981 7,93,506 7,61,951 26,240 99,561 20,817 Chhattisgarh 77,30,456 81,25,985 67,56,016 15,31,966 15,00,347 2,50,598 Goa 403 234 216 5 2 64 Haryana 14,51,535 1,02,67,729 94,27,621 7,52,993 25,15,329 17,24,053 Himachal Pradesh 2,67,618 2,78,055 1,09,605 1,39,516 1,07,964 31,257 Jammu & Kashmir 91,582 2,45,757 1,47,346 17,903 73,579 72,354 Jharkhand 25,48,512 31,825 Karnataka 27,18,915 30,77,232 30,48,823 18,40,873 23,60,145 10,25,637 Kerala 1,46,546 1,74,102 92,743 1,30,053 28,695 - Madhya Pradesh 1,77,32,045 1,77,95,826 97,17,150 36,88,740 39,43,417 32,64,868 Maharashtra 1,07,33,625 2,41,73,494 1,64,14,758 76,44,275 1,32,27,119 73,92,889 Manipur 4,066 5,073 4,619 3,395 4,170 - Meghalaya 337 38,569 47,749 68 14,398 18,952 Odisha 80,20,747 1,41,60,653 1,37,81,469 17,83,312 11,49,287 7,30,087 Puducherry 38,274 42,344 8,781 7,263 5,846 5,857 Rajasthan 3,90,71,541 3,90,16,977 2,15,31,458 1,16,18,304 83,11,462 27,20,571 Sikkim 5,025 3,104 489 - 23 - Tamil Nadu 61,37,961 54,56,594 3,15,826 19,37,875 17,00,553 1,48,721 Telangana Tripura 3,56,201 3,65,378 8,231 20,515 10,905 3,554 Uttar Pradesh 42,83,991 60,68,754 50,72,290 12,51,998 11,84,713 14,41,310 Uttarakhand 2,82,068 2,27,291 1,28,244 1,99,847 1,71,124 92,045 West Bengal - - Grand Total 11,19,50,452 14,34,46,756 9,84,67,602 3,32,24,377 3,64,08,725 1,89,75,498 - Not Implemented/Very low coverageAnnexure-II PMFBY & RWBCIS: State Wise Claims Status from 2022-23 to 2024-25 (upto Kharif 2024) as on June, 2025 Consolidated from 2022-23 to 2024-25 (upto Kharif 2024) State/UT (Rs. In Crore) Reported Claims Paid Claims Claims Pending A & N Islands 0.05 0.02 0.03 Andhra Pradesh 3,138.80 - 2,592.07 State share in subsidy and farmers premium share is pending from State Gov ernment Assam 557.12 531.51 25.61 Chhattisgarh 3,558.22 3,554.19 4.04 Goa 0.01 0.01 0.00 Haryana 5,921.08 5,858.83 62.25 Himachal Pradesh 369.71 362.51 7.20 Jammu & Kashmir 119.21 116.92 2.29 Jharkhand 20.64 - 20.64 Insured Area not finalised by State Go vernment Karnataka 9,536.91 9,513.35 23.56 Kerala 461.26 460.58 0.69 Madhya Pradesh 13,688.21 12,380.21 1,308.00 Maharashtra 24,912.02 24,588.57 323.46 Manipur 5.10 5.08 0.03 Meghalaya 24.30 23.61 0.68 Odisha 2,556.29 2,541.31 14.98 Puducherry 10.96 8.49 2.48 Rajasthan 17,421.93 16,474.21 947.72 Sikkim 0.03 0.02 0.01 Tamil Nadu 5,225.14 5,207.59 17.56 Telangana - - - Tripura 9.87 9.57 0.29 Uttar Pradesh 3,208.86 3,157.58 51.27 Uttarakhand 966.13 965.74 0.39 Total 91711.854 86306.61247 5405.241 ******

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