Executive Summary:
This document presents the Ministry of Agriculture & Farmers Welfare's response to questions regarding delayed crop insurance claims under the Pradhan Mantri Fasal Bima Yojana (PMFBY). It addresses concerns about claim settlement delays, outlines the total value of pending payments, and details mechanisms for timely claim settlement and accountability. The information provided is current as of August 15, 2025, covering the period from 2022-23 to Kharif 2024.
Key Points / Main Content:
* **Claim Settlement Status:**
* As of 15.08.2025, Rs. 1.85 lakh crore (97.88%) out of Rs. 1.89 lakh crore reported claims since 2016 have been paid.
* Delays are attributed to state subsidy disbursement delays, incorrect/delayed insurance proposals by banks, and yield data discrepancies.
* Pending claims are settled upon resolution of these issues as per scheme provisions.
* **Grievance Redressal:**
* Stratified Grievance Redressal Mechanisms (District & State Level Committees) are in place.
* Krishi Rakshak Portal and Helpline (KRPH) with toll-free number 14447 are available for farmers to raise grievances with fixed resolution timelines.
* **Measures for Improvement:**
* The National Crop Insurance Portal (NCIP) ensures data transparency, subsidy payment, and direct online enrollment for farmers.
* The Digiclaim Module monitors claim disbursal, integrating NCIP with the Public Finance Management System (PFMS).
* Central government subsidy share is delinked from state shares.
* States must open ESCROW accounts for advance premium deposits, effective Kharif 2025.
* Technology leveraged via CCEAgri App for yield data and integration of land records with NCIP.
* A 12% penalty is automatically calculated on NCIP for claim payment delays by insurance companies.
* **Pending Claims Data:**
* Annexure I details state-wise pending claims from 2022-23 to 2024-25 (Kharif 2024) as of 15.08.2025.
* Annexure II details insurance company-wise pending claims for the same period.
Impact Analysis:
* Farmers:
* Impact: Timely claim settlement is crucial for financial security after crop losses. Delays impact their livelihoods.
* Action Required: Utilize the Krishi Rakshak Portal and Helpline (14447) to report grievances.
* State Governments:
* Impact: Responsible for implementing the scheme, disbursing subsidies, and resolving yield data disputes.
* Action Required: Ensure timely release of state share of premium subsidy, accurate and timely submission of insured area data, and resolution of disputes with insurance companies. Opening of ESCROW Account by the State Government concerned for deposit of their premium share in advance w.e.f. Kharif 2025 season.
* Insurance Companies:
* Impact: Responsible for timely claim settlement.
* Action Required: Settle claims within stipulated timelines, address grievances raised through the Krishi Rakshak Portal, and comply with penalty provisions for delays.
Key Entities Referenced
Pradhan Mantri Fasal Bima Yojana (PMFBY): A crop insurance scheme implemented across multiple States in India.
Ministry of Agriculture and Farmers Welfare: The Indian government ministry responsible for agriculture and farmers' welfare.
National Crop Insurance Portal (NCIP): A centralized platform for data related to crop insurance, subsidy payment, and farmer services.
Public Finance Management System (PFMS): A platform integrated with NCIP for managing finances and accounting related to crop insurance.
Krishi Rakshak Portal and Helpline (KRPH): A grievance redressal mechanism for farmers related to crop insurance issues.
Digiclaim Module: A dedicated module operationalized for payment of claims from Kharif 2022 onwards.
Andhra Pradesh: A state in India where delayed crop insurance claims were reported.
Maharashtra: A state in India where delayed crop insurance claims were reported.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 4277
TO BE ANSWERED ON THE 19TH AUGUST, 2025
DELAYED CROP INSURANCE CLAIMS UNDER PMFBY
4277. DR. KADIYAM KAVYA:
SHRI TANUJ PUNIA:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ(cid:874)ष एवं (cid:873)कसान क(cid:227)याण मं(cid:287)ी
be pleased to state:
(a) whether the Government is aware of delays in the settlement of crop insurance
claims under the Pradhan Mantri Fasal Bima Yojana (PMFBY) across multiple States;
(b) the total value of delayed payments and the amount of interest, if any, paid to
farmers for such delays in the last three years, State and insurer-wise;
(c) whether the Government has taken cognizance of protests by affected farmers
regarding non-payment of claims despite verified crop losses; and
(d) whether any mechanisms have been put in place to ensure the timely settlement
of claims and enforce accountability on insurers and State Governments, if so, the details
thereof?
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): As on 15.08.2025, out of the total reported claims of Rs.1.89 lakh crore since the
inception of the scheme in 2016, Rs.1.85 lakh crore (97.88 %) 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
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.
(b): State-wise details of pending claims for the last three years, i.e. from 2022-23 to
2024-25 (up to Kharif-24) as on 15.08.2025 has been given at Annexure-I. Insurance
Company-wise details of pending claims for the same period has been given at Annexure-
II.(c): Since the scheme is implemented by the State Government, therefore, in order to
resolve the grievances/complaints including those related to claims of insured farmers,
provision of Stratified Grievance Redressal Mechanism viz. District Level Grievance
Redressal Committee (DGRC), State Level Grievance Redressal Committee (SGRC) has
been made in the Revised Operational Guidelines of the Scheme. These committees
have been given the detailed mandate as outlined in the Operational Guidelines for hearing
the complaints/ grievances and to dispose them as per the stipulated procedure.
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): Government has taken various steps to strengthen implementation of this scheme,
bring transparency, accountability 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-I
PMFBY & RWBCIS: State-Wise Claims Status from 2022-23 to 2024-25 (up to Kharif-
24) as on 15.08.2025 (in Rs.Crore)
Reported Claims Paid Claims Pending Claims
State/UT
(Rs. In Crore)
A & N Islands 0.05 0.02 0.03
Andhra Pradesh 2,971.88 568.15 2,403.74 @
Assam 95.63 91.97 3.66
Chhattisgarh 1,248.04 1,244.21 3.84
Goa 0.01 0.01 0.00
Haryana 3,103.39 3,068.68 34.71
Himachal Pradesh 207.79 204.89 2.90
Jammu & Kashmir 66.50 64.25 2.25
Jharkhand 20.64 - 20.64 $
Karnataka 6,858.81 6,844.92 13.89
Kerala 265.72 265.58 0.14
Madhya Pradesh 3,123.32 2,892.16 231.16
Maharashtra 19,097.06 18,920.39 176.67
Manipur 5.45 3.62 1.83
Meghalaya 24.23 23.55 0.68
Odisha 945.85 932.56 13.30
Puducherry 7.67 5.62 2.06
Rajasthan 8,569.34 8,281.28 288.05
Sikkim 0.01 - 0.01
Tamil Nadu 1,754.50 1,748.56 5.95
Tripura 4.65 4.36 0.29
Uttar Pradesh 1,772.75 1,729.22 43.53
Uttarakhand 708.82 708.42 0.40
Total 50,852.11 47,602.41 3,249.70
@: Pending due to non-receipt of State’s share of premium subsidy
$: Insured Area not finalized by State GovernmentANNEXURE-II
PMFBY & RWBCIS: IC-Wise Claims Status from 2022-23 to 2024-25 (up to Kharif-24)
as on 15.08.2025 (in Rs. Crore)
Reported Claims Paid Claims Pending Claims
Insurance Company
(Rs. In Crore)
AIC 19,517.84 18,894.27 623.57
Bajaj Allianz 3,578.39 2,732.60 845.79
Chola MS 636.19 632.77 3.42
Future Generali 675.79 605.56 70.24
HDFC Ergo 4,173.57 3,844.48 329.09
ICICI Lombard 2,036.42 2,004.22 32.20
IFFCO Tokio 1,749.30 1,725.91 23.39
Kshema General 727.75 685.83 41.92
National 3.81 3.55 0.26
Oriental 4,904.32 4,529.44 374.88
Reliance General 4,078.71 4,004.33 74.38
SBI General 4,619.90 4,232.96 386.94
Tata AIG 529.17 414.43 114.74
United India 1,430.44 1,409.34 21.10
Universal Sompo 2,190.49 1,882.72 307.76
Grand Total 50,852.11 47,602.41 3,249.70
*****