Lok Sabha Question No. 3118 (UNSTARRED), answered on 2023-08-08
Subject: Claim Setttled by Insurance Companies
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Hemant Tukaram Godse, Kalaben Mohanbhai Delkar, Gajanan Chandrakant Kirtikar

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

## LOK SABHA UNSTARRED QUESTION NO. 3118

TO BE ANSWERED ON THE 8 TH  AUGUST, 2023

## CLAIM SETTTLED BY INSURANCE COMPANIES

3118.  SHRI HEMANT TUKARAM GODSE: SHRIMATI DELKAR KALABEN MOHANBHAI: SHRI GAJANAN KIRTIKAR:

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

(a) whether the Government is aware that the insurance companies are not able to settle the claims despite the timely payment of premium by the farmers due to which several claims of farmers are pending for settlement;

(b) if so, the details thereof, State/UT-wise including Dadra & Nagar Haveli and Daman & Diu along with the reasons therefor; and

(c) the corrective measures taken by the Government to resolve the problem and settle the said pending claims of the farmers in each State of the country along with details thereof?

## ANSWER

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

(a) to (c)  : 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 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.

All the major work relating to the 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.    However, during implementation of the PMFBY, some complaints against insurance companies about non-payment  and  delayed  payment  of  claims;  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.,    have  been  received  in  the  past  in  the  country.      Most  of  the complaints have been suitably addressed.

Union Territory of Dadra & Nagar Haveli and Daman & Diu is not implementing the scheme.  State/UT-wise details of claims pending under PMFBY till the year 2021-22 is given in Annexure.

With a view to ensure timely settlement of claims to the farmers, the Government has released Central share of subsidy for the period Kharif 2018 to Rabi 2020-21 by delinking the same with the States' share of subsidy. Insurance Companies have disbursed claims to the tune Rs.209.57 crore on pro-rata basis, benefitting around 4.82  lakh farmers throughout the country,  Further,  in the State of Jharkhand, with the intervention of Government of India, an amount of Rs. 764 crore has been disbursed for the Season Kharif 2018 to Rabi 2019-20

Department has been regularly monitoring the functioning of insurance companies, including timely settlement of claims through weekly video conferences of all stakeholders, one to one meeting as well as National Review Conferences.  To more rigorously monitor claim disbursal process an end to end module by the name of 'Digiclaim Module' has been operationalized for payment of claims from Kharif 2022 onwards.  It involves integration of National  Crop  Insurance  Portal  (NCIP)  with  PFMS  and  accounting  system  of  Insurance Companies  to  provide  timely  &  transparent  processing  of  all  claims.    Various  innovative technologies are also adopted to increase the timeliness for flow of requisite information/data amongst stakeholders.

Based on the experience gained, views of various stakeholders and with a view to ensure better transparency, accountability, timely payment of claims to the farmers and to make  the  scheme  more  farmer  friendly,  Government  has  periodically  comprehensively revised the Operational Guidelines of the PMFBY to ensure that the eligible benefits under the scheme reach the farmers timely and transparently.

## Cumulative State-wise details of pending claims till 2021-22 under PMFBY (as on 30.06.2023)

| State/UT Name    |   Pending Claims (Rs. In Cr.) |
|------------------|-------------------------------|
| Andhra Pradesh   |                         13.9  |
| Assam            |                         34.54 |
| Chhattisgarh     |                         17.41 |
| Gujarat          |                        258.87 |
| Haryana          |                         51.9  |
| Himachal Pradesh |                         23.04 |
| Jammu & Kashmir  |                          3.91 |
| Jharkhand        |                        128.24 |
| Karnataka        |                        132.25 |
| Kerala           |                         53.96 |
| Madhya Pradesh   |                         77.69 |
| Maharashtra      |                        336.22 |
| Odisha           |                         69.61 |
| Puducherry       |                         10.58 |
| Rajasthan        |                       1387.34 |
| Sikkim           |                          0.02 |
| Tamil Nadu       |                         83.55 |
| Telangana        |                         34.11 |
| Tripura          |                          0    |
| Uttar Pradesh    |                         26.46 |
| Uttarakhand      |                         13.17 |
| West Bengal      |                          4.31 |
| GRAND TOTAL      |                       2761.1  |

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