Executive Summary:
This document is the response to Lok Sabha Unstarred Question No. 1566 regarding difficulties faced in availing Pradhan Mantri Fasal Bima Yojana (PMFBY) benefits. It addresses concerns about complex procedures, provides data on funds disbursed and beneficiaries in Uttar Pradesh, and details actions taken against erring insurance companies. The answer was provided on July 29, 2025, by the Minister of State for Agriculture and Farmers Welfare.
Key Points / Main Content:
PMFBY Scheme Simplification:
* The government asserts that PMFBY is a simple scheme, made more farmer-friendly and affordable.
* State Governments have a major role in implementation of the scheme.
* Central Government's role is mainly limited to policy making.
Steps to Make the Scheme Farmer Friendly:
* **DigiClaim:** A dedicated module operational since Kharif 2022 for end-to-end tracking of claim settlement disbursal, integrating NCIP with PFMS.
* **CCE AgriApp:** Captures yield data through Crop Cutting Experiments (CCEs), uploading it to NCIP, allowing insurance companies to witness CCEs.
* **Delinking of Subsidies:** Central Government share of premium subsidy is delinked from State Governments. Escrow mechanism implemented for state subsidy.
* **Krishi Rakshak Portal Helpline (KRPH):** A pan-India toll-free grievance redressal mechanism with a digital portal and call center.
Financial Data for Uttar Pradesh:
* Details of central subsidy paid and the number of farmer applications benefited in Uttar Pradesh over the last five years (2020-21 to 2024-25) are provided, totaling Rs. 2,479.21 crore and 59.78 lakhs applications benefited.
* Out of the above, 0.19 lakhs farmers applications have benefited in Azamgarh district.
Action Against Erring Companies:
* Penalty of 12% is auto-calculated and levied through NCIP if insurance companies don't make timely payments, effective from Kharif 2024.
Impact Analysis:
Farmers:
* Impact: The PMFBY scheme aims to provide easier access to crop insurance benefits, quicker claim settlements, and a grievance redressal mechanism.
* Action Required: Utilize the DigiClaim module, CCE AgriApp, and KRPH to avail benefits and report grievances.
State Governments:
* Impact: State governments play a major role in the implementation of the scheme.
* Action Required: Implement the scheme effectively and coordinate with central government.
Insurance Companies:
* Impact: Required to integrate with NCIP and PFMS for claim processing; subject to penalties for delayed payments.
* Action Required: Ensure timely claim settlement and integrate systems with NCIP and PFMS.
Central Government:
* Impact: Primarily involved in policy making and monitoring the implementation of the scheme.
* Action Required: Continue to monitor and refine the PMFBY scheme.
Key Entities Referenced
Pradhan Mantri Fasal Bima Yojana (PMFBY): A crop insurance scheme by the Government of India to provide financial support to farmers suffering crop loss/damage arising out of unforeseen events.
Uttar Pradesh: A state in India, mentioned in the context of funds provided to crop insurance companies and farmers who availed claim settlement benefits.
Azamgarh district of Uttar Pradesh: A district in Uttar Pradesh, specifically mentioned in relation to the number of farmers who availed claim settlement benefits.
DigiClaim Module: A dedicated module for calculation and payment of insurance claims under PMFBY, aiming for timely and transparent processing.
National Crop Insurance Portal (NCIP): A portal used for integration with other systems like Public Finance Management System (PFMS) and State land records for efficient claim processing and yield estimation.
Public Finance Management System (PFMS): A platform integrated with NCIP for claim settlement and disbursal process.
CCE AgriApp: An application used for capturing yield data from Crop Cutting Experiments (CCEs) and uploading it on the National Crop Insurance Portal (NCIP).
Krishi Rakshak Portal Helpline (KRPH): A pan-India single toll-free integrated grievance redressal mechanism with a digital portal and call center for farmers to lodge their grievances.
O.I.H
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 1566
TO BE ANSWERED ON THE 29th July, 2025
DIFFICULTIES FACED IN AVAILING PMFBY BENEFITS
1566 SHRI DAROGA PRASAD SAROJ :
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 farmers in the country are unable to conveniently avail the benefits of Pradhan
Mantri Fasal Bima Yojana (PMFBY) due to its complex procedures, if so, the details thereof;
(b) the amount of funds provided by the Government to crop insurance companies in Uttar
Pradesh during the last five years, year-wise;
(c) the total number of farmers to whom crop insurance claim benefits have been provided
in comparison to the amount of funds released to the insurance companies for the said
purpose;
(d) the total number of farmers availed claim settlement benefits during the last five years
particularly in Azamgarh district of Uttar Pradesh;
(e) if so, the details thereof; and
(f) the number of such erring companies in Uttar Pradesh against which action has been
taken during the last five years
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) : No, Sir. Pradhan Mantri Fasal Bima Yojana (PMFBY) is a simple scheme for farmers.
As a result of the steps taken by the Government, the scheme has been made farmer
friendly and more affordable. The State Governments have a major role in implementation
of the scheme and the Central Government’s role is mainly limited to policy making.
However, Central Government has taken following steps to make the scheme more farmer
friendly :
(i) DigiClaim: In order to rigorously track/monitor the claim settlement / disbursal process
end to end, a dedicated module namely ‘Digiclaim Module’ has been operationalized for
calculation and payment of claims from Kharif 2022 onwards. Under this module claims are
worked out and settled/disbursed by 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.
(ii) CCE Agri-App : -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 which helps in efficient yield
estimation(iii) Delinking of Central Government share of premium subsidy from that of State
Governments and Escrow mechanism for state subsidy has been implemented so that
farmers can get claims quickly.
(iv) Krishi Rakshak Portal & Helpline (KRPH) A pan-India single toll-free integrated
grievance redressal mechanism having digital portal and a call centre has been
developed to enable farmers to lodge their grievances/concerns/queries.
(b) to (e) : The year wise details of central subsidy paid and nos. of farmers’ applications
benefitted during last five years in Uttar Pradesh is as under
Farmers
Central Govt .
Applications
Share of
Year benefitted -Claims
Subsidy
Paid
(in Rs. Crore) (in lakhs)
2020-21 640.92 6.36
2021-22 612.32 10.37
2022-23 627.57 12.52
2023-24 321.98 11.85
2024-25 276.42 18.68
Total 2,479.21 59.78
The total number of farmers applications benefitted during last five years in Uttar Pradesh
is 59.78 lakhs whereas in Azamgarh District 0.19 lakhs farmers applications have
benefitted.
(f) : Although provisions of penalty existed earlier in the guidelines of the scheme, w.e.f
Kharif 2024, in case payment is not made timely by insurance companies, penalty of 12%
is auto-calculated and levied through NCIP.
*******