Home India Ministry of Agriculture and Farmers Welfare Parliament Question: Timely settlement of Insurance Claims o...
Date: 2025-12-09 Category: Not Applicable State: Union Government Country: India

Parliament Question: Timely settlement of Insurance Claims of PMFBY

Issued by Ministry of Agriculture and Farmers Welfare · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This document pertains to Unstarred Question No. 1605 in Lok Sabha, set to be answered on December 9th, 2025, regarding the timely settlement of insurance claims under the Pradhan Mantri Fasal Bima Yojana (PMFBY). It provides information on measures taken to ensure timely claim settlement, the use of technology for crop loss assessment, and data on farmer enrollments under the scheme. The annexure contains the enrolment information from 2016-17 to 2024-25, up to October 31st, 2025. **Key Points / Main Content** * **PMFBY and RWBCIS Introduction:** * The Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS) were introduced in the country from the Kharif 2016 season. * **Measures for Timely Claim Settlement:** * The government has taken steps to strengthen the implementation of PMFBY across India, aiming for effective execution, timely compensation, transparency, and timely claim settlement. * **National Crop Insurance Portal (NCIP):** * The government has developed NCIP as a single data source to ensure subsidy payment, coordination, transparency, information dissemination, and service delivery. * NCIP enables direct online enrollment of farmers, uploading/obtaining insured farmer details, and electronic transfer of claim amounts to farmers' bank accounts. * **'Digiclaim Module':** * A dedicated 'Digiclaim Module' has been operationalized for payment of claims from Kharif 2022 onwards. * It integrates NCIP with the Public Finance Management System (PFMS) and insurance company accounting systems for timely and transparent claim processing. * **Premium Subsidy Delinking:** * The Central Government's share of premium subsidy has been delinked from that of State Governments to ensure farmers receive proportionate claims relating to the Central Government share. * **Penalty for Delayed Payments:** * As per PMFBY Operational Guidelines, a 12% penalty is auto-calculated and levied via NCIP on insurance companies if payment is not made timely, effective Kharif 2024. * Similarly, a 12% penalty is imposed on State Governments if they delay their premium subsidy. * **Tranche Based Settlement:** * Tranche based claims settlement has been initiated from 2025-26. * **Technology Integration:** * Steps like capturing yield data/Crop Cutting Experiments (CCEs) via CCE-Agri App and uploading it on NCIP, along with integration of State land records with NCIP, have been taken to improve timely claim settlement. * **Escrow Account:** * Opening of an Escrow account has been made mandatory under PMFBY to ensure timely release of the state share of subsidies, controlling delayed claim settlement to eligible farmers. * **Objective Crop Damage Assessment Technologies:** * Implemented from 2023-24: * YES-TECH (Yield Estimation System Based on Technology) for gradual migration to Remote-Sensing based yield estimation and fair Crop Yield Estimation. From Kharif 2023, 30% weightage to yield estimation will mandatorily be assigned to YES-TECH derived yield. Soybean crop has been added from Kharif 2024 season. * WINDS (Weather Information Network and Data System) for setting up a network of Automatic Weather Stations (AWS) & Automatic Rain-Gauges (ARG) to collect hyper-local weather data. * **Data provided in Annexure:** * State-wise farmers' applications insured from 2016-17 to 2024-25 (as of October 31st, 2025). * Details of Farmer Applications Insured in Jalore and Sirohi Districts of Rajasthan from 2016-17 to 2024-25 (as on 31st October, 2025). **Impact Analysis** **Farmers** * **Impact:** Benefit from strengthened PMFBY implementation, timely compensation, transparent processes, and accurate claim settlement. They also benefit from online enrollment and electronic claim transfer. * **Action Required:** Enroll online, provide accurate details, and ensure bank accounts are properly linked for direct claim transfer. **Insurance Companies** * **Impact:** Required to adhere to stricter timelines for claim settlement and are subject to penalties for delays. * **Action Required:** Integrate with NCIP and PFMS for timely claim processing, witness conduct of CCEs, and ensure timely claim disbursal. **State Governments** * **Impact:** Need to ensure timely release of premium subsidies and are subject to penalties for delays. Must open Escrow Accounts. * **Action Required:** Implement PMFBY effectively, release subsidies on time, integrate land records with NCIP, and ensure timely payment of subsidies to avoid penalties. **Central Government** * **Impact:** Streamlined implementation and monitoring of PMFBY, increased transparency, and better coordination with States and insurance companies. * **Action Required:** Maintain and enhance NCIP, ensure effective coordination with State Governments and insurance companies.

Key Entities Referenced

Pradhan Mantri Fasal Bima Yojana (PMFBY): Crop Insurance Scheme National Crop Insurance Portal (NCIP): A single source of data for ensuring subsidy payment, co-ordination, and transparency for the PMFBY. Rajasthan: State in India where Jalor and Sirohi districts are located. Mentioned because of focus on districts within the state. Ministry of Agriculture and Farmers Welfare: The central government ministry responsible for administering PMFBY. Digiclaim Module: A module operationalized for payment of claims from Kharif 2022 onwards.
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GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE LOK SABHA UNSTARRED QUESTION NO. 1605 TO BE ANSWERED ON THE 9th DECEMBER, 2025 TIMELY SETTLEMENT OF INSURANCE CLAIMS OF PMFBY 1605. SHRI LUMBARAM CHOUDHARY : SHRI BIDYUT BARAN MAHATO : 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 total number of farmers who have been Insured under Pradhan Mantri Fasal Bima Yojana (PMFBY) since the implementation of this scheme, State-wise and particularly in Jalore and Sirohi districts in Rajasthan; (b) the details of measures which have been taken to ensure timely settlement of insurance claims to farmers of the country, State-wise including Jharkhand and particularly in Jalore and Sirohi districts in Rajasthan: (c) whether the Government has developed a digital monitoring or remote-sensing based system to assess crop losses more accurately; and (d) if so, the details thereof? 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) : The Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS) were introduced in the country from Kharif 2016 season. State-wise details of farmers application enrolled under the scheme along with Jalore & Sirohi Distts. of Rajasthan, since inception of the scheme in 2016-17 are given in Annexure. (b) to (d) : Government has taken various steps to strengthen implementation of this scheme all over India including Jharkhand and Rajasthan to ensure effective implementation, timely compensation and 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 settlement 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.  Opening of Escrow account has been made mandatory under PMFBY for ensuring timely release of state share of subsidy for implementing season, thereby controlling delayed claim settlement to eligible farmers. This enable States to ensure that the premium subsidies payments are not delayed beyond the prescribed timelines as per provisions of Operational Guidelines.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: State wise Farmers Applications Insured from 2016-17 to 2024-25 (as on 31st October, 2025) State/UT Application Insured (In No.) A & N Islands 2,920 Andhra Pradesh 4,37,16,203 Assam 62,88,099 Bihar 52,31,142 Chhattisgarh 4,35,44,198 Goa 3,891 Gujarat 83,94,495 Haryana 3,88,85,481 Himachal Pradesh 26,69,243 Jammu & Kashmir 9,61,259 Jharkhand 71,63,259 Karnataka 2,23,55,687 Kerala 9,63,528 Madhya Pradesh 10,19,37,987 Maharashtra 13,08,08,719 Manipur 38,748 Meghalaya 91,819 Odisha 6,54,84,317 Puducherry 1,97,592 Rajasthan 19,42,16,079 Sikkim 13,589 Tamil Nadu 3,81,69,842 Telangana 39,04,037 Tripura 14,00,683 Uttar Pradesh 5,29,44,824 Uttarakhand 20,00,126 West Bengal 1,38,05,173 Total 78,51,92,940 PMFBY & RWBCIS: Details of Farmer Applications Insured in Jalore and Sirohi Districts of Rajasthan from 2016-17 to 2024-25 (as on 31st October, 2025) District Application Insured (In No.) Jalore 70,73,426 Sirohi 7,02,608 ******

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