Lok Sabha Question No. 2588 (UNSTARRED), answered on 2025-12-16
Subject: Complaints from Farmers of Karnataka regarding Crop Insurance
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Govind Makthappa Karjol

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

## LOK SABHA UNSTARRED QUESTION NO. 2588

TO BE ANSWERED ON THE 16 TH  DECEMBER, 2025

## COMPLAINTS FROM FARMERS OF KARNATAKA REGARDING CROP INSURANCE

2588. SHRI GOVIND MAKTHAPPA KARJOL:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ͪष एवं ͩकसान कãयाण मंğी

- be pleased to state: (a) whether  the  Government  has  received  any  complaints  from  farmers  on  crop insurance claims in the year 2024-25 and 2025-26 in the country; (b) if so, the details thereof and number of such complaints received from Karnataka; (c) whether  the  Government  has  taken  strict  action  on  insurance  companies  and concern officials in this issue, if so, the details thereof; (d) the  manner  in  which  the  Government  is  undertaking  accurate  crop  damage assessment; (e) the details of crop insurance provided to the farmers in Karnataka during the last five years, district-wise; and the details of the steps taken by the Government to disburse crop claims timely and

## ANSWER

THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE कृ ͪष एवं ͩकसान कãयाण राÏय मंğी (SHRI RAMNATH THAKUR)

(a) to  (c):  As prescribed in the Operational Guidelines of  the Pradhan Mantri Fasal Bima Yojana (PMFBY),  majority of the claims are settled within the stipulated timelines i.e within 21 days of the receipt of requisite yield data from the concerned State Government,  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

- (f) quickly to the farmers?

Government and insurance companies etc.  The pending claims because of these issues are settled after their resolution as per provisions of the scheme.

To further improve the grievance redressal  mechanism, Krishi Rakshak Portal and Helpline (KRPH) has been developed.  A single Pan-India toll free number 14447 has been deployed and linked to the insurance companies' database, where farmers can raise their grievances/issues.  Timelines to resolve these grievances/issues has also been fixed.

- (d): The PMFBY is mainly  implemented  on  'Area  Approach' basis  and  comprehensive risk coverage for crops of farmers against all non-preventable natural risks from pre-sowing to  post-harvest stages of the crops at very minimum premium for the farmers is provided under  the  scheme.  Admissible  claims/crop  loss,  in  this  case,  are  worked  out  and  paid directly  to  the  insured  farmer's  account  by  the  insurance  companies  through  DigiClaim module on National Crop Insurance Portal (NCIP), based on the yield data per unit area furnished  to  the  insurance  company  by  the  concerned  State  Government  and  claim calculation formula envisaged in the Operational Guidelines of the scheme.

However, losses due to localized risks of hailstorm, landslide, inundation, cloud burst &  natural  fire  and  post-harvest  losses  due  to  cyclone,  cyclonic/unseasonal  rains  & hailstorms are calculated on individual insured farm basis.    The extent of loss and  claims in  such  case  are  assessed  by  a  joint  committee  comprising  representatives  of  State Government  and  concerned  insurance  company  within  stipulated  time  frame  under  the Operational Guidelines of the scheme.

Further, following technologies for Objective Crop Damage & Loss Assessment and transparency have also been implemented 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.
3. (e): District-wise details of coverage and claims paid under PMFBY in Karnataka during last five years i.e. from 2020-21 to 2024-25 are given in Annexure .

(f): Government has taken various steps to strengthen implementation of this scheme all over India to 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/obtaining individual insured famer's details for better monitoring and to ensure transfer of claim amount electronically to the individual farmer's Bank Account.
-  In order to rigorously monitor claim disbursal process, a dedicated module namely 'Digiclaim Module' has  been operationalized for  payment of claims from Kharif 2022 onwards.  It involves integration of NCIP with Public Finance Management System (PFMS) and accounting system of Insurance Companies to provide timely & transparent processing of all claims.
-  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.
-  As per the Operational Guidelines of PMFBY, in case payment is not made timely by Insurance Company, a penalty  of 12% is auto-calculated  and levied through National Crop Insurance Portal (NCIP) w.e.f. Kharif 2024.
-  Similarly, if  State  Government delayed its  premium subsidy from stipulated time period, a penalty of 12% is to be paid by them also.
-  Tranche based claims payment has been initiated from 2025-26.
-  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.
-  The Government has actively supported the awareness activities being carried out by  the  States,  implementing  Insurance  Companies,  financial  institutions,  and Common Service Centres (CSCs) network to disseminate key features of PMFBY amongst farmers and members of Panchayati Raj Institutions (PRIs).
-  Structured awareness campaign 'Crop Insurance Week/Fasal Bima Saptah' has been  initiated  by  the  Ministry  of  Agriculture  and  Farmers  Welfare  since  Kharif 2021 season onwards.  Along  with  this,  'Fasal  Bima  Pathshalas'  are  also  being organized at village/GP level for knowledge building of farmers on various aspects of scheme implementation.
-  Government had also organized a nationwide Doorstep Crop Insurance Policy/receipt Distribution mega drive - 'Meri Policy Mere Haath'. Hard copies of crop insurance policy  receipts  are  distributed to  farmers  enrolled  under PMFBY through special camps at gram Panchayat/village level.

Annexure

| PMFBY &RWBCIS: District Wise details of coverage and claims paid in Karnataka from 2020-21 to 2024-25   |
|---------------------------------------------------------------------------------------------------------|
| (as on 31st October, 2025)                                                                              |

| District        | Application Enrolled   | Area Insured   | Sum Insured   | Premium Collected from Farmers   | Paid Claims    | Farmers Application Benefitted   |
|-----------------|------------------------|----------------|---------------|----------------------------------|----------------|----------------------------------|
| District        | (In No.)               | (In Lakh Ha.)  | (In Lakh Ha.) | (Rs. In Crore)                   | (Rs. In Crore) | (In No.)                         |
| Bagalkot        | 2,01,427               | 2.30           | 1,382.15      | 42.54                            | 295.75         | 97,704                           |
| Ballari         | 75,844                 | 0.72           | 455.57        | 11.03                            | 44.67          | 28,428                           |
| Belagavi        | 3,28,700               | 2.73           | 1,716.61      | 53.55                            | 361.22         | 1,45,225                         |
| Bengaluru Rural | 41,526                 | 0.17           | 96.14         | 2.81                             | 10.93          | 16,605                           |
| Bengaluru Urban | 3,091                  | 0.01           | 6.78          | 0.20                             | 1.07           | 1,287                            |
| Bidar           | 12,94,302              | 8.38           | 3,151.56      | 62.90                            | 232.26         | 6,08,296                         |
| Chamarajnagar   | 77,990                 | 0.40           | 155.42        | 3.34                             | 15.62          | 27,694                           |
| Chikkaballapur  | 2,10,129               | 0.98           | 587.00        | 15.23                            | 151.21         | 1,43,757                         |
| Chikkamagaluru  | 2,48,281               | 1.34           | 1,220.73      | 58.99                            | 278.67         | 1,41,991                         |
| Chitradurga     | 5,81,527               | 6.94           | 3,443.35      | 80.15                            | 559.91         | 2,48,212                         |
| Dakshinakannada | 8,57,238               | 2.22           | 2,458.46      | 122.82                           | 880.55         | 5,17,156                         |
| Davangere       | 2,67,241               | 2.00           | 1,414.33      | 43.70                            | 335.32         | 1,71,939                         |
| Dharwad         | 8,62,748               | 9.05           | 3,990.59      | 114.10                           | 534.18         | 4,28,555                         |
| Gadag           | 10,81,988              | 13.25          | 5,781.39      | 144.39                           | 1,119.02       | 7,25,367                         |
| Hasan           | 5,09,126               | 2.22           | 970.31        | 28.97                            | 186.89         | 2,55,647                         |
| Haveri          | 14,54,731              | 11.01          | 6,186.39      | 147.99                           | 1,256.37       | 10,82,578                        |
| Kalaburgi       | 6,76,778               | 7.95           | 3,440.31      | 72.57                            | 730.45         | 7,99,443                         |
| Kodagu          | 14,545                 | 0.09           | 55.09         | 2.57                             | 9.95           | 7,596                            |
| Kolar           | 93,469                 | 0.45           | 233.68        | 8.78                             | 35.66          | 50,272                           |
| Koppal          | 5,80,117               | 6.38           | 2,815.63      | 61.09                            | 301.81         | 2,65,259                         |
| Mandya          | 2,95,869               | 0.82           | 307.24        | 5.77                             | 71.53          | 1,78,456                         |
| Mysuru          | 41,662                 | 0.18           | 74.67         | 1.72                             | 7.07           | 15,356                           |
| Raichur         | 3,36,102               | 4.00           | 2,347.83      | 52.73                            | 153.97         | 93,764                           |
| Ramanagara      | 60,998                 | 0.31           | 184.92        | 7.77                             | 57.90          | 37,583                           |
| Shivamogga      | 4,37,205               | 2.24           | 2,304.14      | 98.83                            | 496.72         | 2,99,067                         |
| Tumakuru        | 6,46,346               | 3.84           | 2,099.58      | 63.28                            | 250.80         | 3,13,788                         |
| Udupi           | 62,774                 | 0.16           | 181.25        | 8.86                             | 55.70          | 33,702                           |
| Uttarkannada    | 7,57,386               | 2.37           | 2,006.07      | 76.08                            | 305.18         | 4,21,818                         |
| Vijayanagara    | 1,81,837               | 1.64           | 909.24        | 18.77                            | 219.80         | 1,40,485                         |
| Vijayapura      | 6,54,244               | 9.37           | 5,452.65      | 162.54                           | 1,015.20       | 3,60,493                         |
| Yadgiri         | 59,865                 | 0.73           | 403.58        | 10.15                            | 30.79          | 29,406                           |
| Total           | 1,29,95,086            | 104.24         | 55,832.68     | 1,584.22                         | 10,006.16      | 76,86,929                        |

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