Home India Ministry of Agriculture and Farmers Welfare Parliament Question: Payment of Insurance under PMFBY in Raj...
Date: 2025-12-09 Category: Not Applicable State: Union Government Country: India

Parliament Question: Payment of Insurance under PMFBY in Rajasthan

Issued by Ministry of Agriculture and Farmers Welfare · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This document presents the Minister of Agriculture and Farmers Welfare's response to Unstarred Question No. 1546 concerning the payment of insurance under the Pradhan Mantri Fasal Bima Yojana (PMFBY) in Rajasthan, specifically addressing issues raised regarding delays in insurance compensation in Sri Ganganagar and Hanumangarh districts. It also details the government's actions to improve the scheme's transparency and efficiency. The information provided is current as of October 31, 2025. **Key Points / Main Content** * **Claim Settlement Timelines:** * The majority of claims under PMFBY are settled within 21 days of receiving yield data from the State Government, as per Operational Guidelines. * **Reasons for Claim Payment Issues:** * Delays in State Government subsidy sharing. * Incorrect or delayed submission of insurance proposals by banks. * Discrepancies in yield data leading to disputes between the State Government and insurance companies. * **PMFBY Implementation:** * Implemented on an ‘Area Approach' basis with comprehensive risk coverage. * Claims are paid directly to the insured farmer's account via the DigiClaim module on the National Crop Insurance Portal (NCIP). * Localized risks and post-harvest losses are calculated on an individual insured farm basis by a joint committee. * **Government Initiatives to Improve PMFBY:** * Development of the National Crop Insurance Portal (NCIP) to ensure transparency, data coordination, and direct online enrollment. * 'Digiclaim Module' operational for claim payment involving integration of NCIP with Public Finance Management System (PFMS) for timely & transparent processing of all claims * Delinking of Central Government share of premium subsidy from State Government's share. * Penalty of 12% is auto-calculated and levied through NCIP for delayed payment by Insurance Company. * Penalty of 12% is to be paid by State Governments for the delayed premium subsidy from stipulated time period. * Tranche-based claims payment has been initiated from 2025-26. * Capturing yield data/Crop Cutting Experiments (CCEs) data through CCE-Agri App and uploading it on the NCIP. * Active support for awareness activities involving States, Insurance Companies, financial institutions, and Common Service Centers (CSCs). * Structured awareness campaign 'Crop Insurance Week/Fasal Bima Saptah' since Kharif 2021. * Nationwide Doorstep Crop Insurance Policy/receipt Distribution mega drive – ‘Meri Policy Mere Haath' * Implementation of YES-TECH (Yield Estimation System Based on Technology) for Remote-Sensing based yield estimation. * Implementation of WINDS (Weather Information Network and Data System) for setting up of Network of Automatic Weather Stations (AWS) & Automatic Rain-Gauges (ARG) * **Data Annexed:** * District-wise details of premium collected, claims paid, and farmer applications benefitted in Rajasthan (including Sri Ganganagar and Hanumangarh districts) from 2020-21 to 2024-25 are annexed. **Impact Analysis** **Farmers in Rajasthan (Including Sri Ganganagar and Hanumangarh Districts)** * **Impact:** Affected by delays in claim settlement, discrepancies in compensation amounts, and varying access to insurance benefits. * **Action Required:** To stay informed about the PMFBY scheme, report any issues with claim settlements, and ensure proper documentation for insurance proposals through banks. **State Government of Rajasthan** * **Impact:** Responsible for timely sharing of subsidy, providing accurate yield data, and resolving disputes with insurance companies. * **Action Required:** Address delays in subsidy sharing, improve data accuracy, and engage in timely dispute resolution with insurance companies. **Insurance Companies** * **Impact:** Responsible for timely claim settlement based on yield data and adherence to scheme guidelines. * **Action Required:** Settle claims within stipulated timelines, address disputes promptly, and ensure accurate claim calculations as per Operational Guidelines. **Banks** * **Impact:** Responsible for submission of insurance proposals. * **Action Required:** Ensure accurate and timely submission of insurance proposals for farmers.

Key Entities Referenced

Pradhan Mantri Fasal Bima Yojana (PMFBY): A government-sponsored crop insurance scheme aimed at providing financial support to farmers suffering crop losses. Rajasthan: The Indian state where the PMFBY is being assessed in the context of payment of insurance. Ministry of Agriculture and Farmers Welfare: The central ministry responsible for the PMFBY scheme and related policies. National Crop Insurance Portal (NCIP): A centralized data source and portal for managing and implementing crop insurance schemes, including PMFBY. Sri Ganganagar and Hanumangarh: Districts in Rajasthan specifically mentioned due to farmers facing issues in receiving insurance compensation under PMFBY.
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O.I.H. GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE LOK SABHA UNSTARRED QUESTION NO. 1546 TO BE ANSWERED ON THE 9TH DECEMBER, 2025 PAYMENT OF INSURANCE UNDER PMFBY IN RAJASTHAN 1546. SHRI KULDEEP INDORA: 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 that thousands of farmers in Sri Ganganagar, Hanumangarh districts and several other areas are not receiving insurance compensation under the Pradhan Mantri Fasal Bima Yojana (PMFBY) often due to the arbitrariness of insurance companies, incorrect survey reports or other technical problems; (b) if so, the details thereof and the steps being taken by the Government to improve this situation; (c) the details of the total premium collected, insurance compensation claimed, approved amount and disbursed insurance amount under PMFBY during the past five years specifically for Rajasthan and Sri Ganganagar and Hanumangarh district, year, State and district-wise; (d) the reasons for the lower compensation received by farmers in Sri Ganganagar district; and (e) whether any new initiatives are being taken to make the scheme more transparent and simple so that all farmers take benefit? 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 मं(cid:287)ी (SHRI RAMNATH THAKUR) (a) to (d) : As prescribed 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.The PMFBY is mainly implemented on ‘Area Approach’ basis and comprehensive risk coverage for crops of farmers against all non-preventable natural risks from pre-sowing to post-harvest stages of the crops at very minimum premium for the farmers is provided under the scheme. Admissible claims, in this case, are worked out and paid directly to the insured farmer’s account by the insurance companies through DigiClaim module on National Crop Insurance Portal (NCIP), based on the yield data per unit area furnished to the insurance company by the concerned State Government and claim calculation formula envisaged in the Operational Guidelines of the scheme. As the claims are being worked out on an average shortfall in yield. However, losses due to localized risks of hailstorm, landslide, inundation, cloud burst & natural fire and post-harvest losses due to cyclone, cyclonic/unseasonal rains & hailstorms are calculated on individual insured farm basis. The extent of loss and claims in such case are assessed by a joint committee comprising representatives of State Government and concerned insurance company within stipulated time frame under the Operational Guidelines of the scheme. Thus insurance companies are bound to pay the claims as worked out on National Crop Insurance Portal (NCIP) based on the yield data submitted by the State Government concerned and/or as per report of the Committee. District wise details of premium collected from farmers, Claims Paid and number of farmer applications benefitted by claims in Rajasthan including Sri Ganganagar and Hanumangarh districts from 2020-21 to 2024-25 are annexed. (e) : 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 PMFBY & RWBCIS: District wise details of premium collected from farmers, Claims Paid and no. of farmer applications benefitted by claims including Sri Ganganagar and Hanumangarh districts of Rajasthan from 2020-21 to 2024-25 (as on 31st October, 2025) Farmer Share Claims Paid Farmer Application Benefitted District in Premium (Rs. In Crore) (In No.) Ajmer 110.48 582.69 16,74,716 Alwar 82.89 47.71 2,28,932 Banswara 30.66 26.57 3,05,338 Baran 122.12 280.02 3,73,533 Barmer 240.73 1,021.12 22,13,270 Bharatpur 76.42 57.03 12,23,757 Bhilwara 114.58 384.20 15,07,111 Bikaner 311.73 1,360.62 17,81,848 Bundi 120.18 322.83 7,10,218 Chittorgarh 144.85 397.24 11,48,519 Churu 298.81 2,848.80 27,21,713 Dausa 28.17 19.06 72,720 Dholpur 9.71 4.31 36,423 Dungarpur 16.44 36.38 4,10,683 Hanumangarh 302.99 2,697.87 69,39,714 Jaipur 158.07 553.31 19,30,089 Jaisalmer 156.12 625.07 2,45,468 Jalore 328.09 1,483.86 17,02,858 Jhalawar 199.42 597.61 12,76,043 Jhunjhunu 133.49 540.08 15,32,057 Jodhpur 338.14 1,361.59 13,02,107 Karauli 16.14 7.87 35,334 Kota 127.04 146.56 3,38,467 Nagaur 307.92 1,071.17 9,72,757 Pali 93.93 338.44 5,66,043 Pratapgarh 63.68 126.13 3,60,380 Rajsamand 15.88 7.88 48,084 Sawai Madhopur 50.53 102.03 5,61,740 Sikar 142.09 409.50 11,95,669 Sirohi 22.30 56.84 68,086 Sri Ganganagar 228.59 883.75 29,43,663 Tonk 148.64 371.72 9,02,341 Udaipur 27.54 91.90 5,61,972 Total 4,568.37 18,861.78 3,78,91,653 *******

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