Lok Sabha Question No. 2785 (UNSTARRED), answered on 2025-03-18
Subject: Operational Guidelines of PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri S Venkatesan

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

## LOK SABHA UNSTARRED QUESTION NO. 2785

TO BE ANSWERED ON THE 18 TH  MARCH, 2025

## OPERATIONAL GUIDELINES OF PMFBY

## 2785. SHRI S VENKATESAN:

Will the Minister of AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी be pleased to state:

- (a) whether as per the provisions of revamped Operational Guidelines of the PM Bima Fasal Yojana, insurance companies are required to pay penal interest @12% per annum to the farmers for the period beyond the period stipulated in the PMFBY Guidelines from the date of  receipt of final yield data from the State Government and completion of crop damage survey, if so, the details thereof;
- (b) whether insurance companies settled all the claims in stipulated time after revamped Operational Guidelines are issued, if so, the details thereof;
- (c)  the  details  of  quantum  of  penal  interest  paid  by  the  insurance  companies  after  the implementation of revamped Operational Guidelines for the delayed settlement of claims, Statewise and company-wise; and
- (d)  the  details  of  non  payment  of  penal  interest  by  private  companies  and  action  taken thereon?

## ANSWER

THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण राǛ मंũी (SHRI RAMNATH THAKUR)

- (a) : Yes Sir.
- (b)  to  (d)  :  All  the  major  work  like  selection  of  insurance  model,  selection  of  Insurance Companies through transparent bidding process, enrollment of farmers, assessment of crop yield/crop loss for calculation of admissible claims are being performed by the concerned State  Government  or  Joint  Committee  of  State  Government  officials  and  concerned insurance company.   Further, all the data relating to payment of claims was available with the States/UTs, therefore, they were advised to impose penalties on insurance companies themselves.    The  roles  and  responsibilities  of  each  stakeholder  are  defined  in  the Operational Guidelines of the scheme for the proper execution of the scheme.

Majority of the claims are settled  within the stipulated timelines under the Operational Guidelines of the scheme by the insurance companies.  However, during the implementation of  PMFBY,  some  complaints  were  received  in  the  past  about  non-payment,  delayed payment  or  under  payment  of  claims  on  account  of  incorrect/delayed  submission  of insurance proposals by banks; discrepancy in yield data & consequent disputes between State Government and insurance companies,  delay in providing State Government share of funds, non-deployment of sufficient personnel by insurance companies etc.,  which were suitably addressed as per provisions of the scheme.

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. This modules gives GOI visibility of claims payable, claims paid and pending. This is used for monitoring of claims, which was not possible earlier.  It involves integration of National Crop Insurance Portal (NCIP) with Public Finance Management System (PFMS) and accounting system of Insurance Companies to provide timely & transparent processing of all claims.  W.e.f. Kharif 2024, in case payment is not made timely by Insurance Company, penalty of 12% is auto-calculated and levied through NCIP.   This is the first season for implementation of auto calculated penalty on NCIP and Department is taking all necessary steps for its enforcement.

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