**Executive Summary**
This report details updates to the Pradhan Mantri Fasal Bima Yojana (PMFBY) as of February 3, 2026. States are now permitted to include coverage for crop losses due to wild animal attacks as an add-on. The report outlines revisions to the PMFBY's operational guidelines, technological advancements for claim processing and assessment, and the introduction of new systems for yield estimation and weather data collection. Opening of ESCROW account by State Government has been made mandatory w.e.f. Kharif 2025 season.
**Key Points / Main Content**
* **Add-on Cover for Wild Animal Damage:**
* States can now include coverage for crop losses due to wild animals, individually assessed, at the State Government's expense, following detailed protocol in the scheme's Operational Guidelines.
* **Coverage for Inundation:**
* Inundation is a risk cover available to all notified crops under PMFBY, except in case of localized claims for hydrophilic crops like paddy, jute, mesta, sugarcane.
* **Periodic Revisions to Operational Guidelines:**
* The Government has revised the PMFBY Operational Guidelines periodically in 2018, 2020 and 2023, incorporating stakeholder feedback.
* **Claim Settlement:**
* Most claims are settled within stipulated timelines.
* Pending claims related to issues like delays in state subsidy, incorrect bank submissions, and yield data discrepancies are resolved as per scheme provisions.
* **Strengthening Implementation:**
* National Crop Insurance Portal (NCIP) development ensures transparency and timely claim settlement.
* 'Digiclaim Module' has been operationalized for payment of claims from Kharif 2022 onwards, integrated with NCIP and PFMS for timely processing of all claims w.e.f. Kharif 2024.
* Premium subsidy from Central Government and State Governments have been delinked.
* Use of technology:
* Yield data/Crop Cutting Experiments (CCEs) data are captured through CCE-Agri App & uploaded on NCIP.
* Integration of State land records with NCIP.
* Penalty of 12% on delay in payment of claims by insurance company is auto calculated on NCIP.
* Opening of ESCROW account by State Government is mandatory from Kharif 2025.
* **Objective Crop Damage & Loss Assessment (w.e.f. 2023-24):**
* YES-TECH (Yield Estimation System Based on Technology): Gradual migration to Remote-Sensing for accurate Crop Yield Estimation (30% weightage).
* WINDS (Weather Information Network and Data System): Setting up network of Automatic Weather Stations (AWS) & Automatic Rain-Gauges (ARG) to collect hyperlocal weather data.
**Impact Analysis**
**Stakeholder: States**
* **Impact:** Increased flexibility in offering comprehensive crop insurance by allowing add-on covers for wild animal damage and increased data availability for more accurate assessment.
* **Action Required:** Notify losses by wild animals as add-on cover at the State Government cost. Open ESCROW account for deposit of premium share w.e.f. Kharif 2025 season.
**Stakeholder: Farmers**
* **Impact:** Enhanced claim settlement process through the Digiclaim Module and increased transparency via NCIP, resulting in more timely and accurate insurance payouts.
* **Action Required:** No direct action specified in the document. However, farmers benefit from the NCIP and streamlined claim processes.
**Stakeholder: Insurance Companies**
* **Impact:** Integration with NCIP and the Digiclaim Module streamlines claim processing and increases transparency; 12% penalty for delay in payment of claims.
* **Action Required:** Adapt to the new technologies and procedures outlined in the revised Operational Guidelines, including NCIP and Digiclaim Module integration, and ensure timely claim settlements.
**Stakeholder: Ministry of Agriculture & Farmers Welfare**
* **Impact:** Enhanced monitoring and control over the PMFBY implementation through the NCIP, improved data collection, and streamlined processes.
* **Action Required:** Ensure the effective implementation of the new guidelines and monitor the progress of the technological advancements.
Key Entities Referenced
Pradhan Mantri Fasal Bima Yojana (PMFBY): Comprehensive risk insurance scheme against crop damage due to non-preventable natural risks, including coverage for losses due to wild animals under certain conditions.
National Crop Insurance Portal (NCIP): A single source of data for subsidy payment, co-ordination, transparency, dissemination of information and delivery of services under PMFBY.
Operational Guidelines of the PMFBY: Detailed protocol that provides guidance to implement the Pradhan Mantri Fasal Bima Yojana scheme. Periodically revised by the government.
Ministry of Agriculture & Farmers Welfare: The ministry responsible for administering the PMFBY scheme.
Ministry of Agriculture & Farmers Welfare
PMFBY Provides Comprehensive Crop
Insurance; States Allowed Add-On Cover for Wild
Animal Damage
Posted On: 03 FEB 2026 8:09PM by PIB Delhi
The Pradhan Mantri Fasal Bima Yojana (PMFBY), introduced in the country from 2016-17 is providing
comprehensive risk insurance against crop damage due to non-preventable natural risks from pre-sowing
to post-harvest for the crops/areas notified by the concerned State Government. The losses to crops due
to wild animals, being preventable in nature, were therefore not covered earlier. However, at the request
of Ministry of Environment, Forest and Climate Change and State Governments, States have been allowed
to notify the losses by wild animals on individual assessment as add on cover at the cost of State
Government. Detailed protocol for such coverage has been given in the Operational Guidelines of the
scheme.
Inundation as a risk cover is available to all notified crops under PMFBY. However, for hydrophilic crops
like paddy, jute, mesta, sugarcane, such cover is available except in case of localized claims.
Considering requests from various stakeholders for inclusion of these perils under localized calamities in
PMFBY, a Committee was constituted for “Defining Modalities of Crop Loss by Wild Animal Attack and
Inundation for Paddy Crop under Localised Risk”. The Committee has submitted its report alongwith
recommendations and Standard Operating Procedures (SOPs) for coverage of these risks.
Further, the review/revisions / improvements in the crop insurance schemes is a continuous process and
decision on suggestion/ representations/ recommendations of the stakeholders/studies are taken from time
to time. Based on the experience gained, views of various stakeholders, to ensure better transparency,
accountability, timely payment of claims to the farmers and to make the scheme more farmer friendly,
Government has periodically revised the Operational Guidelines of the PMFBY comprehensively in 2018,
2020 and 2023.
Majority of the claims are settled within the stipulated timelines under the Operational Guidelines of the
scheme 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.
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/obtainingindividual 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.
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.
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).
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.
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.
This information was given by Minister of State for Agriculture and Farmers Welfare, Shri Ramnath
Thakur in a written reply in Lok Sabha today.
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RC/PU/489
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