Home India Ministry of Agriculture and Farmers Welfare PAYMENT OF COMPENSATION UNDER PRADHAN MANTRI FASAL BIMA YOJA...
Date: 2025-08-01 Category: Not Applicable State: Union Government Country: India

PAYMENT OF COMPENSATION UNDER PRADHAN MANTRI FASAL BIMA YOJANA

Issued by Ministry of Agriculture and Farmers Welfare · Not Applicable

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Executive Summary & Key Takeaways

**Summary:** As of June 30, 2025, the Pradhan Mantri Fasal Bima Yojana (PMFBY) has insured 78.407 Crore farmer applications since its inception in 2016. Claims totaling Rs. 1.83 lakh Crores have been paid to 22.667 Crore farmers during this period. The government has implemented measures to enhance the scheme's implementation, transparency, and timely claim settlement. Key initiatives include the development of the National Crop Insurance Portal (NCIP) for data management, subsidy payment, coordination, and direct online farmer enrollment. The Digiclaim Module, operational since Kharif 2022, integrates the NCIP with the Public Finance Management System (PFMS) and insurance company accounting systems for streamlined claim payments. The central government's premium subsidy share is now delinked from state governments to ensure proportionate claims for farmers. State governments are mandated to open ESCROW accounts for advance deposit of their premium share starting from the Kharif 2025 season. Technology is being leveraged through the CCEAgri App for capturing yield data from Crop Cutting Experiments (CCEs) and uploading it to the NCIP. Insurance companies can now witness CCEs, and state land records are integrated with the NCIP to expedite claim settlements. A 12% penalty is automatically calculated on the NCIP for delayed claim payments by insurance companies. Both public and private insurance companies are involved to expand farmer coverage, particularly among non-loanee farmers, and foster competition. This competition has led to decreased actuarial/bidded premium rates. Farmer application coverage has increased from 371 lakhs in 2014-15 to 1510 lakhs in 2024-25, with non-loanee farmer applications increasing from 20 lakhs to 522 lakhs in the same period. This information was provided by Minister of State for Agriculture and Farmers Welfare, Shri Ramnath Thakur, in a written reply in Rajya Sabha.

Key Entities Referenced

Ministry of Agriculture Farmers Welfare: The Indian governmental ministry responsible for agriculture and farmers' welfare. Pradhan Mantri Fasal Bima Yojana: A government-sponsored crop insurance scheme in India. National Crop Insurance Portal NCIP: A centralized online platform for crop insurance data management, subsidy payment, and service delivery under the Pradhan Mantri Fasal Bima Yojana. Digiclaim Module: A dedicated module for payment of claims under Pradhan Mantri Fasal Bima Yojana. Public Finance Management System PFMS: A platform for managing government finances in India, integrated with NCIP for claim disbursal. Crop Cutting Experiments CCEs: A method for estimating crop yield, data from which is captured through CCEAgri App and uploaded on the NCIP. CCEAgri App: Application used to capture yield data from Crop Cutting Experiments (CCEs) and upload it to the National Crop Insurance Portal (NCIP). Rajya Sabha: The Upper House of the Parliament of India, where information regarding the scheme was provided.
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Ministry of Agriculture & Farmers Welfare PAYMENT OF COMPENSATION UNDER PRADHAN MANTRI FASAL BIMA YOJANA Posted On: 01 AUG 2025 4:33PM by PIB Delhi Since its inception in 2016 till 2024-25, as on 30.06.2025, 78.407 Crore Farmer Applications have been insured under Pradhan Mantri Fasal Bima Yojana. Out of these applications, 22.667 Crore farmers received claims totalling to Rs. 1.83 lakh Crores for the same period. Government has taken various steps to strengthen implementation of this scheme, bring transparency and ensure timely settlement of claims, such as: Development of National Crop Insurance Portal (NCIP) as a single source of data ensuring (cid:108) subsidy payment, co-ordination, transparency, dissemination of information and delivery of services including direct online enrolment 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 (cid:108) 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. Delinking of Central Government share of premium subsidy from that of State Governments has (cid:108) 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 (cid:108) 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 (cid:108) 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 (cid:108) on National Crop Insurance Portal (NCIP). Both Public Sector and Private Insurance Companies have been involved to increase the coverage of farmers especially non-loanee farmers and to bring more competition in crop insurance sector so as to provide the best services to farmers at competitive rates. Due to increased competition, actuarial/bidded premium rates have also decreased. As compared to erstwhile crop insurance schemes, coverage of farmer applications has increased from 371 lakhs in 2014-15 to 1510 lakhs in 2024-25. Number of non-loanee farmer applications has also increased from 20 lakhs in 2014-15 to 522 lakhs in 2024-25. This information was given by Minister of State for Agriculture and Farmers Welfare, Shri Ramnath Thakur in a written reply in Rajya Sabha today. ****** RC/ KSR/AR(Release ID: 2151351)

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