**Executive Summary**
This document is a response to an unstarred question in the Lok Sabha regarding compensation to farmers under the Pradhan Mantri Fasal Bima Yojana (PMFBY). It provides data on farmer enrollment, claims paid, and beneficiaries from 2020-21 to 2024-25 and details steps taken by the government to improve the scheme's implementation and transparency. The answer was scheduled to be presented on December 16, 2025.
**Key Points / Main Content**
* **PMFBY Claims Settlement:**
* Most claims are settled within 21 days of receiving the required yield data from the State Government.
* Past complaints involved delays due to:
* State government subsidy share delays.
* Incorrect/delayed insurance proposals from banks.
* Yield data discrepancies between State Governments and insurance companies.
* Pending claims are settled after resolving these issues as per the scheme's provisions.
* **Government Initiatives for Improved Implementation:**
* **National Crop Insurance Portal (NCIP):** Developed as a central data source for subsidy payments, coordination, transparency, information dissemination, and direct online farmer enrollment. It facilitates electronic fund transfer to farmers' accounts.
* **Digiclaim Module:** Operationalized from Kharif 2022 to monitor claim disbursal, integrating NCIP with the Public Finance Management System (PFMS) and insurance company accounting systems.
* **Premium Subsidy Delinking:** Central and State Government premium subsidy shares are delinked to ensure farmers receive proportionate claims from the Central Government share.
* **Penalty for Delayed Payments:** Insurance companies are penalized with 12% for delayed payments (effective Kharif 2024) through NCIP. States delaying premium subsidies also face a 12% penalty.
* **Tranche Based Payment:** Tranche-based claims payment initiated from 2025-26.
* **Technology Integration:** Enhanced yield data capture via the CCE-Agri App, NCIP uploads, insurance company access to CCEs, and integration of State land records with NCIP.
* **Awareness Campaigns:** Government supports awareness activities by States, insurance companies, financial institutions, and Common Service Centers (CSCs) to disseminate PMFBY features. Structured campaigns like 'Crop Insurance Week/Fasal Bima Saptah' and 'Fasal Bima Pathshalas' are conducted.
* **Policy Distribution:** Nationwide Doorstep Crop Insurance Policy/receipt Distribution drive – ‘Meri Policy Mere Haath'.
* **Technologies for Objective Crop Damage & Loss Assessment (from 2023-24):**
* **YES-TECH:** (Yield Estimation System Based on Technology) for remote-sensing based yield estimation. 30% weightage to YES-TECH derived yield mandated for paddy & wheat crops from Kharif 2023. Soybean added from Kharif 2024.
* **WINDS:** (Weather Information Network and Data System) for enhanced weather data collection through Automatic Weather Stations (AWS) & Automatic Rain-Gauges (ARG).
**Impact Analysis**
**Stakeholder: Farmers**
* **Impact:** Farmers benefit from improved claim settlement timeliness and transparency, direct enrollment, electronic fund transfers, and increased awareness of the PMFBY scheme. The scheme aims to mitigate the financial impact of crop losses due to unforeseen events.
* **Action Required:** Farmers should utilize direct enrollment, monitor claim statuses, and participate in awareness programs. They should also ensure accurate and timely submission of required information for enrollment and claim processing.
**Stakeholder: State Governments**
* **Impact:** State Governments are responsible for providing timely yield data and premium subsidies. Delays result in financial penalties. They are also involved in awareness activities and resolving yield data discrepancies.
* **Action Required:** State Governments must ensure timely submission of accurate yield data, provide their share of premium subsidies, and address issues causing claim delays. They should also actively promote PMFBY and participate in awareness initiatives.
**Stakeholder: Insurance Companies**
* **Impact:** Insurance companies are responsible for timely claim settlement as per PMFBY guidelines. Delays incur penalties. They are required to integrate with the NCIP and PFMS for claim processing.
* **Action Required:** Insurance companies must streamline claim settlement processes, adhere to stipulated timelines, integrate with NCIP and PFMS, and address discrepancies in yield data.
**Stakeholder: Banks**
* **Impact:** Banks play a role in submitting insurance proposals. Incorrect or delayed submissions cause delays in claim settlement.
* **Action Required:** Banks must ensure accurate and timely submission of insurance proposals to avoid impacting farmers' claim settlement.
Key Entities Referenced
Pradhan Mantri Fasal Bima Yojana (PMFBY): Crop insurance scheme aimed at providing financial support to farmers suffering crop loss/damage arising out of unforeseen events.
National Crop Insurance Portal (NCIP): A single source of data for ensuring subsidy payment, co-ordination, transparency, dissemination of information related to crop insurance.
Ministry of Agriculture and Farmers Welfare: The central ministry responsible for policies and programs related to agriculture and farmers' welfare.
YES-TECH (Yield Estimation System Based on Technology): Technology for gradual migration to Remote-Sensing based yield estimation to help assess yields as well as fair and accurate Crop Yield Estimation.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 2608
TO BE ANSWERED ON THE 16th DECEMBER, 2025
FARMERS RECEIVED COMPENSATION UNDER PMFBY
2608. SHRI BAPI HALDAR:
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) the number of farmers and the amount received as compensation under Pradhan
Mantri Fasal Bima Yojana (PMFBY) during the last five years, State-wise and year-wise;
(b) whether farmers have been facing any problems in claiming compensation, if so, the
details thereof;
(c) the average number of days between claim made and receival of compensation; and
(d) the measures taken by the Government to make the process of insurance claim
settlement simple and time-bound?
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): State-wise and Year-wise details of number of farmer applications enrolled, claims
paid and number of farmer applications benefitted from 2020-21 to 2024-25 under the
Pradhan Mantri Fasal Bima Yojana (PMFBY) are given in Annexure-I and II respectively.
(b) & (c): As per provisions contained 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 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.
(d): 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.
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.Annexure-I
PMFBY & RWBCIS: State Wise Details of Application Enrolled, Paid Claims and
Application Benefitted from 2020-21 to 2024-25 (as on 31st October, 2025)
State/UT Name Application Enrolled Paid Claims Farmers
Application
Benefitted
(In No.) (Rs. In Crore) (In No.)
A & N Islands 1,413 0.02 86
Andhra Pradesh 3,48,75,727 747.08 14,57,780
Assam 50,95,937 605.74 8,47,219
Chhattisgarh 3,49,34,309 3,709.21 82,22,424
Goa 1,371 0.01 70
Haryana 3,30,14,711 5,957.76 66,75,269
Himachal Pradesh 13,55,624 374.95 5,74,975
Jammu & Kashmir 6,36,073 119.91 2,13,993
Jharkhand 27,02,750 - -
Karnataka 1,29,95,086 10,006.16 74,65,914
Kerala 7,15,122 572.99 4,00,586
Madhya Pradesh 7,17,51,158 13,863.37 2,10,28,519
Maharashtra 7,92,47,032 26,342.00 3,69,07,277
Manipur 16,565 6.73 12,473
Meghalaya 87,127 24.05 33,195
Odisha 5,47,87,922 2,579.54 84,74,312
Puducherry 1,76,266 10.78 30,959
Rajasthan 15,98,80,717 18,851.16 3,89,75,706
Sikkim 11,305 0.03 41
Tamil Nadu 2,87,60,131 5,829.86 1,17,74,309
Tripura 13,38,763 9.67 1,17,331
Uttar Pradesh 2,93,87,768 3,311.67 58,43,071
Uttarakhand 11,10,625 968.50 6,93,560
Total 55,28,83,502 93,891.19 14,97,49,069Annexure-II
PMFBY & RWBCIS: State Wise Details of Application Enrolled, Paid Claims and
Application Benefitted from 2020-21 to 2024-25 (as on 31st October, 2025)
Year Application Enrolled Paid Claims Farmers Application
Benefitted
(In No.) (Rs. In Crore) (In No.)
2020-21 6,24,55,870 20,457.76 1,93,44,233
2021-22 8,29,80,129 20,563.65 3,43,65,103
2022-23 11,24,87,613 19,840.78 3,28,08,066
2023-24 14,35,72,488 20,773.33 3,70,64,583
2024-25 15,13,87,403 12,255.67 2,61,67,084
Total 55,28,83,503 93,891.19 14,97,49,069
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