Lok Sabha Question No. 356 (UNSTARRED), answered on 2021-11-30
Subject: Payment of Insurance Claims under PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Ramesh Chandra Majhi, Achyutananda Samanta

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION NO. 356

TO BE ANSWERED ON THE 30 TH  NOVEMBER, 2021

## PAYMENT OF INSURANCE CLAIMS UNDER PMFBY

356. SHRI RAMESH CHANDRA MAJHI  : SHRI ACHYUTANANDA SAMANTA :

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष एवं कसान कयाण मंी be pleased to state:

- (a) whether insurance claims are being paid to farmers on time after crop damage/failure under the Pradhan Mantri Fasal Bima Yojana (PMFBY), if so, the details thereof;
- (b) whether in many States, including Odisha, the payment of insurance claims for crop failure in 2018-19, 2019-20 and 2020-21 is still pending, if so the details thereof;
- (c) whether the Government proposes to take steps for payment of all these outstanding claims;
- (d) if so, the details thereof and the time by which the outstanding claims will be fully paid and if not, the reasons therefor; and
- (e)  the  steps  being  taken  by  the  Government  to  ensure  that  farmers  are  being compensated  properly  especially  during  crop  loss  in  cases  of  drought  or  deficient rainfall?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE कृ िष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

(a)  to  (e)  :  The  admissible  claims  under  the  Pradhan  Mantri  Fasal  Bima  Yojana (PMFBY) are generally paid by the concerned insurance companies within two months of completion of Crop Cutting Experiments (CCEs)/harvesting period and one month of notification for invoking the risks/perils of prevented sowing, mid-season adversity and post harvest losses subject to receipt of total share of premium subsidy from concerned Government within time. However, settlement of few claims  in  some States  including Odisha got delayed due to reasons like delayed transmission of yield data; late release of their share in premium subsidy, yield related disputes between insurance companies and States, non-receipt of account details of some farmers for transfer of claims to the bank account of eligible farmers and National Electronic Fund Transfer (NEFT) related issues, erroneous/incomplete entry of individual farmers data on National  Crop Insurance  Portal  (NCIP),  delay  in  remittance  of  farmers  share  of  premium/nonremittance of farmers share of premium to concerned insurance company etc.

This Department is regularly monitoring the implementation of PMFBY including timely settlement of claims through weekly video conference of stakeholders, one to one meetings  with  insurance  companies/States  etc.    Further,  penalty  provisions  for  late settlement  of  claims  by  insurance  companies  and  late  release  of  funds  by  State Governments  have  also  been  stipulated  under  the  revised/revamped  operational guidelines of the scheme.  Insurance companies have to pay penal interest @12% per annum  to  the  farmers  for  the  period  beyond  the  stipulated  period  in  the  PMFBY Guidelines from the date of receipt of final yield data from the State Government and completion of crop damage survey.

Further, this Department is regularly reviewing the schemes in consultation with State  Governments  and  other  stakeholders  to  streamline the process  for early settlement of claims and to provide timely and adequate benefits to the eligible farmers under the scheme.

State-wise  details  of  pending  claims  including  Odisha,  for  the  years  2018-19, 2019-20 and 2020-21 are annexed .

| Annexure                                                                                          | Annexure                                                                                          | Annexure                                                                                          | Annexure                                                                                          | Annexure                                                                                          | Annexure                                                                                          |
|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|
| State-Wise Status of Pending Claims under PMFBY for 2018-19, 2019-20 and 2020-21 as on 25.11.2021 | State-Wise Status of Pending Claims under PMFBY for 2018-19, 2019-20 and 2020-21 as on 25.11.2021 | State-Wise Status of Pending Claims under PMFBY for 2018-19, 2019-20 and 2020-21 as on 25.11.2021 | State-Wise Status of Pending Claims under PMFBY for 2018-19, 2019-20 and 2020-21 as on 25.11.2021 | State-Wise Status of Pending Claims under PMFBY for 2018-19, 2019-20 and 2020-21 as on 25.11.2021 | State-Wise Status of Pending Claims under PMFBY for 2018-19, 2019-20 and 2020-21 as on 25.11.2021 |
| State/UT Name                                                                                     | States/UTs                                                                                        | (Rs. in crore) Reported Claims                                                                    | Paid Claims                                                                                       | Claims Pending                                                                                    | Reason for Pendency                                                                               |
| 2018-19                                                                                           | A & N Islands                                                                                     | 0.09                                                                                              | 0.01                                                                                              | 0.08                                                                                              | Payment Failure                                                                                   |
| 2018-19                                                                                           | Andhra Pradesh                                                                                    | 1,890.05                                                                                          | 1,885.76                                                                                          | 4.29                                                                                              | Payment Failure                                                                                   |
| 2018-19                                                                                           | Gujarat                                                                                           | 2,778.08                                                                                          | 2,777.89                                                                                          | 0.18                                                                                              | State Subsidy Pending                                                                             |
| 2018-19                                                                                           | Haryana                                                                                           | 948.01                                                                                            | 947.75                                                                                            | 0.27                                                                                              | Payment Failure                                                                                   |
| 2018-19                                                                                           | Jharkhand                                                                                         | 684.94                                                                                            | 50.98                                                                                             | 633.95                                                                                            | State Subsidy Pending                                                                             |
| 2018-19                                                                                           | Karnataka                                                                                         | 2,948.56                                                                                          | 2,947.99                                                                                          | 0.57                                                                                              | Payment Failure                                                                                   |
| 2018-19                                                                                           | Madhya Pradesh                                                                                    | 3,777.31                                                                                          | 3,777.14                                                                                          | 0.17                                                                                              | Payment Failure                                                                                   |
| 2018-19                                                                                           | Maharashtra                                                                                       | 6,149.46                                                                                          | 6,146.19                                                                                          | 3.27                                                                                              | Payment Failure                                                                                   |
| 2018-19                                                                                           | Telangana                                                                                         | 587.35                                                                                            | 148.92                                                                                            | 438.43                                                                                            | State Subsidy Pending                                                                             |
| 2018-19                                                                                           | West Bengal                                                                                       | 535.52                                                                                            | 529.85                                                                                            | 5.67                                                                                              | Payment Failure; State Subsidy Pending                                                            |
| 2018-19 Total                                                                                     |                                                                                                   | 29,341.04                                                                                         | 28,254.15                                                                                         | 1,086.89                                                                                          |                                                                                                   |
| 2019-20                                                                                           | Andhra Pradesh                                                                                    | 1,259.01                                                                                          | 1,254.03                                                                                          | 4.98                                                                                              | Payment Failure                                                                                   |
| 2019-20                                                                                           | Assam                                                                                             | 21.27                                                                                             | -                                                                                                 | 21.27                                                                                             | State Subsidy Pending                                                                             |
| 2019-20                                                                                           | Chhattisgarh                                                                                      | 1,314.60                                                                                          | 1,296.59                                                                                          | 18.02                                                                                             | Payment Failure                                                                                   |
| 2019-20                                                                                           | Gujarat                                                                                           | 369.40                                                                                            | 111.67                                                                                            | 257.73                                                                                            | State Subsidy Pending                                                                             |
| 2019-20                                                                                           | Haryana                                                                                           | 933.08                                                                                            | 928.36                                                                                            | 4.72                                                                                              | Payment Failure                                                                                   |
| 2019-20                                                                                           | Himachal Pradesh                                                                                  | 67.54                                                                                             | 66.61                                                                                             | 0.93                                                                                              | Payment Failure                                                                                   |
| 2019-20                                                                                           | Jharkhand                                                                                         | 25.46                                                                                             | -                                                                                                 | 25.46                                                                                             | State Subsidy Pending                                                                             |
| 2019-20                                                                                           | Karnataka                                                                                         | 1,572.28                                                                                          | 1,349.26                                                                                          | 223.02                                                                                            | Payment Failure; Pending clarifications from State Government                                     |
|                                                                                                   | Madhya Pradesh                                                                                    | 5,991.92                                                                                          | 5,947.35                                                                                          | 44.57                                                                                             | Under Process                                                                                     |
|                                                                                                   | Maharashtra                                                                                       | 6,757.36                                                                                          | 6,748.51                                                                                          | 8.85                                                                                              | Payment Failure                                                                                   |
|                                                                                                   | Odisha                                                                                            | 1,170.11                                                                                          | 1,152.81                                                                                          | 17.30                                                                                             | Pending clarifications from State Government                                                      |
|                                                                                                   | Puducherry                                                                                        | 7.16                                                                                              | 6.23                                                                                              | 0.93                                                                                              | Payment Failure                                                                                   |
|                                                                                                   | Rajasthan                                                                                         | 4,921.91                                                                                          | 4,920.18                                                                                          | 1.73                                                                                              | Payment Failure                                                                                   |
|                                                                                                   | Tamil Nadu                                                                                        | 1,168.60                                                                                          | 1,136.46                                                                                          | 32.14                                                                                             | State Subsidy Pending                                                                             |
|                                                                                                   | Telangana                                                                                         | 512.78                                                                                            | -                                                                                                 | 512.78                                                                                            | State Subsidy Pending                                                                             |
|                                                                                                   | Uttar Pradesh                                                                                     | 1,110.56                                                                                          | 1,086.56                                                                                          | 24.01                                                                                             | Payment Failure; Pending clarifications from State Government                                     |
| 2019-20 Total                                                                                     |                                                                                                   | 27,394.34                                                                                         | 26,195.86                                                                                         | 1,198.48                                                                                          |                                                                                                   |
| 2020-21 (Provisional)                                                                             | Chhattisgarh                                                                                      | 882.09                                                                                            | 853.95                                                                                            | 28.14                                                                                             | State Subsidy Pending;                                                                            |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Payment Failure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Haryana                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 1,126.01                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 1,118.64                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 7.36                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | State Subsidy Pending; Payment Failure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Himachal Pradesh                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 36.22                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 19.16                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 17.06                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | State Subsidy Pending; Payment Failure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Karnataka                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 539.67                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 485.80                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 53.87                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Under Process                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Kerala                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 103.03                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 70.02                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 33.01                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | State Subsidy Pending                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Maharashtra                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 1,311.35                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 940.62                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 370.73                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | State Subsidy Pending                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Odisha                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 550.24                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 546.00                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 4.25                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Under Process                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Puducherry                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 16.25                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 16.25                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | State Subsidy Pending                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Rajasthan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 3,610.07                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 3,449.35                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 160.73                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | State Subsidy Pending; Payment Failure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Tamil Nadu                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 952.44                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 565.69                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 386.75                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Under Process; Payment Failure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Uttar Pradesh                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 491.12                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 486.75                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 4.36                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | State Subsidy Pending                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Uttarakhand                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 104.55                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 99.72                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 4.84                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Payment Failure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 2020-21 Total (Provisional)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 9,725.24                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 8,637.89                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 1,087.35                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Grand Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 66,460.62                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 63,087.90                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 3,372.72                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| * Cases where claims are settled have not been reported but are included in year totals Note : All admissible claims are being transferred electronically to the bank account of the eligible insured farmers directly or Aadhar Enabled Payment System (AEPS). However, payment failure occur due to error in banking details essential for money transfer such as mismatch in name in bank accounts, IFSC Code, Account number, dormant bank account and death of eligible insured farmer without nomination etc., in transfer of claims amount. | * Cases where claims are settled have not been reported but are included in year totals Note : All admissible claims are being transferred electronically to the bank account of the eligible insured farmers directly or Aadhar Enabled Payment System (AEPS). However, payment failure occur due to error in banking details essential for money transfer such as mismatch in name in bank accounts, IFSC Code, Account number, dormant bank account and death of eligible insured farmer without nomination etc., in transfer of claims amount. | * Cases where claims are settled have not been reported but are included in year totals Note : All admissible claims are being transferred electronically to the bank account of the eligible insured farmers directly or Aadhar Enabled Payment System (AEPS). However, payment failure occur due to error in banking details essential for money transfer such as mismatch in name in bank accounts, IFSC Code, Account number, dormant bank account and death of eligible insured farmer without nomination etc., in transfer of claims amount. | * Cases where claims are settled have not been reported but are included in year totals Note : All admissible claims are being transferred electronically to the bank account of the eligible insured farmers directly or Aadhar Enabled Payment System (AEPS). However, payment failure occur due to error in banking details essential for money transfer such as mismatch in name in bank accounts, IFSC Code, Account number, dormant bank account and death of eligible insured farmer without nomination etc., in transfer of claims amount. | * Cases where claims are settled have not been reported but are included in year totals Note : All admissible claims are being transferred electronically to the bank account of the eligible insured farmers directly or Aadhar Enabled Payment System (AEPS). However, payment failure occur due to error in banking details essential for money transfer such as mismatch in name in bank accounts, IFSC Code, Account number, dormant bank account and death of eligible insured farmer without nomination etc., in transfer of claims amount. | * Cases where claims are settled have not been reported but are included in year totals Note : All admissible claims are being transferred electronically to the bank account of the eligible insured farmers directly or Aadhar Enabled Payment System (AEPS). However, payment failure occur due to error in banking details essential for money transfer such as mismatch in name in bank accounts, IFSC Code, Account number, dormant bank account and death of eligible insured farmer without nomination etc., in transfer of claims amount. |

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