**Executive Summary:**
This document addresses the timely settlement of claims under the Pradhan Mantri Fasal Bima Yojana (PMFBY) and related government initiatives. It outlines steps taken to improve claim disbursal, including the use of technology and monitoring mechanisms. The document clarifies that there are no new schemes or loan waivers under consideration, but highlights the Modified Interest Subvention Scheme (MISS) for concessional interest rates on short-term agricultural loans. The effective date of the ESCROW account opening and penalty for claim delays is Kharif 2025.
**Key Points / Main Content:**
* **Pradhan Mantri Fasal Bima Yojana (PMFBY):**
* Scheme introduced in Kharif 2016 and is voluntary for states and farmers.
* State governments/joint committees handle insurance model selection, company selection, farmer enrollment, and crop loss assessment.
* Claim settlement is expected within 21 days of receiving yield data from the state government.
* Delays in claim payments have occurred due to state subsidy delays, incorrect insurance proposals from banks, and yield data discrepancies. These are resolved as per the scheme's provisions.
* **Measures to Strengthen PMFBY Implementation:**
* **National Crop Insurance Portal (NCIP):** A single data source for subsidy payment, coordination, transparency, information dissemination, and direct online enrollment of farmers.
* **DigiClaim Module:** Operational from Kharif 2022, integrates NCIP with Public Finance Management System (PFMS) for transparent claim processing.
* Penalty of 12% is autocalculated and levied through NCIP for delayed payments by insurance companies (w.e.f. Kharif 2024).
* Central government premium subsidy delinked from state subsidies.
* Mandatory opening of ESCROW accounts by state governments for advance deposit of premium share (w.e.f. Kharif 2025).
* Use of CCEAgri App for capturing Crop Cutting Experiments (CCEs) data and uploading to NCIP.
* Integration of state land records with NCIP.
* **Technologies for Crop Damage Assessment:**
* **YESTECH (Yield Estimation System Based on Technology):** Uses remote sensing for yield estimation, with mandatory weightage to YESTECH derived yield. Implemented for paddy and wheat from Kharif 2023, and soybean from Kharif 2024.
* **WINDS (Weather Information Network and Data System):** Sets up a network of Automatic Weather Stations (AWS) and Automatic Rain Gauges (ARG) for hyperlocal weather data collection, integrated with India Meteorological Department (IMD).
* **Monitoring:**
* The Department of Agriculture and Farmers Welfare regularly monitors insurance companies through weekly video conferences, one-to-one meetings, and National Review Conferences.
* **Loan Waiver and Interest Subvention:**
* No loan waiver scheme is currently in operation or under consideration.
* **Modified Interest Subvention Scheme (MISS):** Provides concessional interest rates on short-term agricultural loans through Kisan Credit Cards (KCC).
* Farmers receive KCC loans at a subsidized interest rate of 7%.
* Upfront interest subvention (IS) of 1.5% is provided to financial institutions.
* Prompt Repayment Incentive (PRI) of 3% reduces the effective interest rate to 4% per annum for loans up to Rs. 3 lakhs.
* For allied activities, the loan amount is limited to Rs. 2 lakhs.
**Impact Analysis:**
* **Farmers:**
* *Impact:* Affected by the timely settlement of PMFBY claims and the availability of concessional loans through MISS. The technologies adopted aim to give fair and accurate estimation of crop yield and crop loss.
* *Action Required:* Ensure accurate and timely submission of insurance proposals, utilize Kisan Credit Cards (KCC) for short-term agricultural loans, and promptly repay loans to avail the Prompt Repayment Incentive (PRI). Enroll directly into the PMFBY scheme via the NCIP.
* **State Governments:**
* *Impact:* Responsible for the selection of insurance models and companies, farmer enrollment, crop loss assessment, and timely submission of yield data. They are also responsible for paying their share of the premium subsidy.
* *Action Required:* Ensure timely payment of premium subsidies, accurate and timely submission of yield data, open ESCROW accounts for premium share deposits (w.e.f. Kharif 2025), and facilitate the implementation of YESTECH and WINDS.
* **Insurance Companies:**
* *Impact:* Responsible for timely settlement of claims as per PMFBY guidelines.
* *Action Required:* Ensure timely processing and disbursal of claims, integrate with NCIP and PFMS through the DigiClaim Module, and pay penalties for delays in claim settlement (w.e.f. Kharif 2024). Witness the conduct of CCEs.
* **Banks/Financial Institutions:**
* *Impact:* Involved in the disbursement of KCC loans and responsible for the correct and timely submission of insurance proposals.
* *Action Required:* Provide KCC loans at subsidized interest rates, ensure accurate and timely submission of insurance proposals, and facilitate the benefits of IS and PRI to farmers.
Key Entities Referenced
Pradhan Mantri Fasal Bima Yojana: A Government of India crop insurance scheme (PMFBY) aimed at providing financial support to farmers suffering crop loss/damage arising out of unforeseen events.
Maharashtra: A state in India, mentioned in the context of city-wise details of schemes.
Dadra and Nagar Haveli: A Union Territory in India, mentioned in the context of city-wise details of schemes.
Madhya Pradesh: A state in India, mentioned in the context of city-wise details of schemes.
National Crop Insurance Portal: A digital platform (NCIP) developed by the Government of India for crop insurance related activities including data management, subsidy payment, and information dissemination.
Digiclaim Module: A dedicated module operationalized for payment of claims involving integration of NCIP with Public Finance Management System (PFMS) and accounting system of Insurance Companies to provide timely transparent processing of all claims.
Modified Interest Subvention Scheme: A Central Sector Scheme (MISS) implemented across various States and UTs on pan India that aims to provide concessional interest rates on short-term agricultural loans obtained by farmers through Kisan Credit Cards.
Kisan Credit Cards: A credit card (KCC) provided to farmers for their working capital requirements with concessional interest rates under the Modified Interest Subvention Scheme.
O.I.H.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 246
TO BE ANSWERED ON THE 22ND JULY, 2025
TIMELY SETTLMENT OF PMFBY CLAIMS
246. DR. SHIVAJI BANDAPPA KALGE:
SHRI BALYA MAMA SURESH GOPINATH MHATRE:
SHRI BHUMARE SANDIPANRAO ASARAM:
SMT. DELKAR KALABEN MOHANBHAI:
SHRI GYANESHWAR PATIL:
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 the claims under the Pradhan Mantri Fasal Bima Yojana (PMFBY) are being
settled of farmers timely along with actions taken by the Government to overcome the
challenges being faced in this regard;
(b) whether the Government proposes to launch any new schemes or take any initiatives
to reduce the debt burden on farmers;
(c) if so, the city-wise details thereof pertaining to Maharashtra, Dadra and Nagar Haveli
and Madhya Pradesh; and
(d) the details of the Government's policy with regard to agricultural loan waiver and
whether the Government propose to implement in same national level?
ANSWER
THE 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 Yojna (PMFBY) was introduced in the country from
Kharif 2016 season. The scheme is voluntary for the States and farmers. All the major
work like selection of insurance model, selection of Insurance Companies through
transparent bidding process, enrollment of farmers, assessment of crop yield/crop loss for
calculation of admissible claims are being performed by the concerned State Government
or Joint Committee of State Government officials and concerned insurance company. The
roles and responsibilities of each stakeholder are defined in the Operational Guidelines of
the scheme for the proper execution of the scheme.
Majority of the claims are settled within the stipulated timelines under the
Operational Guidelines of the scheme i.e within 21 days of the receipt requisite yield data
from the concerned State Government, by the insurance companies. However, during
the implementation of PMFBY, some complaints/grievances 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 StateGovernment and insurance companies etc. The pending claims on account of these
issue are settled after their resolution as per provisions of the scheme.
Government has taken various steps to strengthen implementation of this scheme,
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 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
w.e.f. Kharif 2024, in case payment is not made timely by Insurance Company,
penalty of 12% is auto-calculated and levied through NCIP.
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 & 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).
Further, following technologies for Objective Crop Damage & Loss Assessment and
transparency have also been implemented recently 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.
Department is regularly monitoring the functioning of insurance companies,
including timely settlement of claims through weekly video conferences of all stakeholders,
one to one meeting as well as National Review Conferences.
(b) to (d) : No Sir. Presently, no scheme for loan waiver is in operation and/or under
consideration in the Department of Agriculture & Farmers Welfare. However, the
government is implementing a 100% centrally funded Central Sector Scheme known as theModified Interest Subvention Scheme (MISS) across various States and UTs on pan India.
This scheme aims to provide concessional interest rates on short-term agricultural loans
obtained by farmers through Kisan Credit Cards (KCC) for their working capital
requirements.
Under this scheme, farmers receive KCC loans at a subsidized interest rate of 7%.
To facilitate this, an up front interest subvention (IS) of 1.5% is provided to financial
institutions. Additionally, farmers who repay their loans promptly receive a 3% Prompt
Repayment Incentive (PRI), effectively reducing the interest rate to 4% per annum.
The benefits of IS and PRI are available for loan limits up to Rs.3 lakhs. However, if
the short-term loan is taken for allied activities (other than crop husbandry), the loan amount
is limited to Rs.2 lakhs.
*****