Lok Sabha Question No. 4950 (UNSTARRED), answered on 2025-04-01
Subject: Pending Insurance Claims for Climate-related Losses
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Kodikunnil Suresh

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

## LOK SABHA UNSTARRED QUESTION NO. 4950

TO BE ANSWERED ON THE 1 ST  APRIL, 2025

## PENDING INSURANCE CLAIMS FOR CLIMATE-RELATED LOSSES

4950. SHRI KODIKUNNIL SURESH:

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

- (a) the details of total number of pending insurance claims under various agricultural insurance schemes for climate-induced losses, specifically for crop damage due to rising temperature above 32 degrees; (b) the details of total amount yet to be disbursed to affected farmers particularly in Kerala, and the reasons for the delay in processing these claims, State-wise; (c) whether the Government has taken any steps to expedite the disbursal of pending claims and provide immediate financial relief to farmers struggling with climate-related agricultural losses; and
- (d) if so, the details thereof and if not, the reasons therefor ?

## ANSWER

## THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE

क ृ िष एवं िकसान कʞाण राǛ मंũी (SHRI  RAMNATH THAKUR) (a) & (b): Government is committed to provide security to the farmers against climate risks. A  yield  index  based  Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY)  and  weather  index  based Restructured Weather  Based Crop  Insurance  Scheme (RWBCIS) have been introduced from Kharif 2016 season. 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  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 upon receipt of Centre and State Government's requisite share in premium subsidy.   Farmers need not intimate crop loss in respect of these claims.    As the claims are worked out on the basis of area approach, no specific reason for the loss such as flood, drought, high temperature, climate change etc. is recorded.

State-wise  details  of  claims  reported  and  claims  paid  to  farmers during last  six  years i.e. 2018-19 to 2023-24 are annexed . (c) & (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.   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.

Annexure State-wise details of claims Reported and Claims Paid during last 6 years

## i.e. from 2018-19 to 2023-24 under PMFBY and RWBCIS (As on 31.01.2025)

| State/UT          | Total Reported Claims   | Total Paid Claims   |
|-------------------|-------------------------|---------------------|
|                   | (Rs. In Crore)          | (Rs. In Crore)      |
| A & N Islands     | 0.12                    | 0.09                |
| Andhra Pradesh    | 5,552.73                | 3,710.72            |
| Assam             | 671.30                  | 631.01              |
| Chhattisgarh      | 5,769.22                | 5,764.12            |
| Goa               | 0.11                    | 0.11                |
| Gujarat           | 3,399.54                | 3,268.50            |
| Haryana           | 7,674.09                | 7,622.18            |
| Himachal Pradesh  | 351.76                  | 346.60              |
| Jammu & Kashmir   | 124.34                  | 117.84              |
| Jharkhand         | 818.10                  | 806.52              |
| Karnataka         | 11,346.38               | 11,198.78           |
| Kerala            | 519.05                  | 512.89              |
| Madhya Pradesh    | 22,749.73               | 22,274.34           |
| Maharashtra       | 33,259.94               | 32,628.00           |
| Manipur           | 6.27                    | 6.22                |
| Meghalaya         | 9.52                    | 9.10                |
| Odisha            | 4,816.36                | 4,732.67            |
| Puducherry        | 33.98                   | 32.45               |
| Rajasthan         | 25,284.61               | 24,805.88           |
| Sikkim            | 1.10                    | 0.56                |
| Tamil Nadu        | 9,067.83                | 9,025.83            |
| Telangana         | 1,112.67                | 1,109.80            |
| Tripura           | 6.93                    | 6.34                |
| Uttar Pradesh     | 4,467.13                | 4,393.30            |
| Uttarakhand       | 818.69                  | 813.51              |
| West Bengal       | 539.56                  | 535.73              |
| Total (All India) | 1,38,401.04             | 1,34,353.09         |

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