Lok Sabha Question No. 4277 (UNSTARRED), answered on 2025-08-19
Subject: Delayed Crop Insurance Claims under PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Tanuj Punia, Dr. Kadiyam Kavya

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

## LOK SABHA UNSTARRED QUESTION NO. 4277

TO BE ANSWERED ON THE 19 TH  AUGUST, 2025

## DELAYED CROP INSURANCE CLAIMS UNDER PMFBY

4277.  DR. KADIYAM KAVYA: SHRI TANUJ PUNIA:

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

- (a) whether  the  Government  is  aware  of  delays  in  the  settlement  of  crop  insurance claims under the Pradhan Mantri Fasal Bima Yojana (PMFBY) across multiple States;
- (b) the  total  value  of  delayed  payments  and  the  amount  of  interest,  if  any,  paid  to farmers for such delays in the last three years, State and insurer-wise;
- (c) whether  the  Government  has  taken  cognizance  of  protests  by  affected  farmers regarding non-payment of claims despite verified crop losses; and
- (d) whether any mechanisms have been put in place to ensure the timely settlement of claims and enforce accountability on insurers and State Governments, if so, the details thereof?

## ANSWER

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

- (a): As on 15.08.2025, out of the total reported claims of Rs.1.89 lakh crore since the inception of the scheme in 2016,  Rs.1.85 lakh crore (97.88 %) have already been paid to the  farmers.  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 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  Government  and insurance companies etc. The pending claims on account of these issue are settled after their resolution as per provisions of the scheme.
- (b): State-wise  details  of  pending  claims  for  the  last  three  years,  i.e.  from  2022-23  to 2024-25  (up  to  Kharif-24)  as  on  15.08.2025  has  been  given  at Annexure-I .  Insurance Company-wise details of pending claims for the same period has been given at AnnexureII .

(c): Since the scheme is implemented by the State Government, therefore, in order to resolve  the  grievances/complaints  including  those  related  to  claims  of  insured  farmers, provision  of Stratified  Grievance  Redressal  Mechanism viz.  District  Level  Grievance Redressal Committee (DGRC), State Level Grievance Redressal Committee (SGRC) has been made in the Revised Operational Guidelines  of  the  Scheme.        These  committees have been given the detailed mandate as outlined in the Operational Guidelines for hearing the complaints/ grievances   and to dispose them as per the stipulated procedure.

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): Government has taken various steps to strengthen implementation of this scheme, bring transparency, accountability 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 enrolment 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  National Crop Insurance  Portal  (NCIP) with  Public  Finance  Management  System  (PFMS)  and  accounting  system  of Insurance Companies.
-  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.
-  Opening of ESCROW Account by the State Government concerned for deposit of their premium share in advance as per provisions of the scheme has been made mandatory w.e.f. Kharif 2025 season.
-  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 and  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.
-  Provision of 12% penalty on delay in payment of claims by insurance company is auto calculated on National Crop Insurance Portal (NCIP).

PMFBY & RWBCIS: State-Wise Claims Status from 2022-23 to 2024-25 (up to Kharif24) as on 15.08.2025 (in Rs.Crore)

| State/UT         | Reported Claims   | Paid Claims    | Pending Claims   |
|------------------|-------------------|----------------|------------------|
|                  | (Rs. In Crore)    | (Rs. In Crore) | (Rs. In Crore)   |
| A & N Islands    | 0.05              | 0.02           | 0.03             |
| Andhra Pradesh   | 2,971.88          | 568.15         | 2,403.74@        |
| Assam            | 95.63             | 91.97          | 3.66             |
| Chhattisgarh     | 1,248.04          | 1,244.21       | 3.84             |
| Goa              | 0.01              | 0.01           | 0.00             |
| Haryana          | 3,103.39          | 3,068.68       | 34.71            |
| Himachal Pradesh | 207.79            | 204.89         | 2.90             |
| Jammu & Kashmir  | 66.50             | 64.25          | 2.25             |
| Jharkhand        | 20.64             | -              | 20.64 $          |
| Karnataka        | 6,858.81          | 6,844.92       | 13.89            |
| Kerala           | 265.72            | 265.58         | 0.14             |
| Madhya Pradesh   | 3,123.32          | 2,892.16       | 231.16           |
| Maharashtra      | 19,097.06         | 18,920.39      | 176.67           |
| Manipur          | 5.45              | 3.62           | 1.83             |
| Meghalaya        | 24.23             | 23.55          | 0.68             |
| Odisha           | 945.85            | 932.56         | 13.30            |
| Puducherry       | 7.67              | 5.62           | 2.06             |
| Rajasthan        | 8,569.34          | 8,281.28       | 288.05           |
| Sikkim           | 0.01              | -              | 0.01             |
| Tamil Nadu       | 1,754.50          | 1,748.56       | 5.95             |
| Tripura          | 4.65              | 4.36           | 0.29             |
| Uttar Pradesh    | 1,772.75          | 1,729.22       | 43.53            |
| Uttarakhand      | 708.82            | 708.42         | 0.40             |
| Total            | 50,852.11         | 47,602.41      | 3,249.70         |

@: Pending due to non-receipt of State's share of premium subsidy

$: Insured Area not finalized by State Government

ANNEXURE-II

## PMFBY & RWBCIS: IC-Wise Claims Status from 2022-23 to 2024-25 (up to Kharif-24) as on 15.08.2025 (in Rs. Crore)

| Insurance Company   | Reported Claims   | Paid Claims    | Pending Claims   |
|---------------------|-------------------|----------------|------------------|
|                     | (Rs. In Crore)    | (Rs. In Crore) | (Rs. In Crore)   |
| AIC                 | 19,517.84         | 18,894.27      | 623.57           |
| Bajaj Allianz       | 3,578.39          | 2,732.60       | 845.79           |
| Chola MS            | 636.19            | 632.77         | 3.42             |
| Future Generali     | 675.79            | 605.56         | 70.24            |
| HDFC Ergo           | 4,173.57          | 3,844.48       | 329.09           |
| ICICI Lombard       | 2,036.42          | 2,004.22       | 32.20            |
| IFFCO Tokio         | 1,749.30          | 1,725.91       | 23.39            |
| Kshema General      | 727.75            | 685.83         | 41.92            |
| National            | 3.81              | 3.55           | 0.26             |
| Oriental            | 4,904.32          | 4,529.44       | 374.88           |
| Reliance General    | 4,078.71          | 4,004.33       | 74.38            |
| SBI General         | 4,619.90          | 4,232.96       | 386.94           |
| Tata AIG            | 529.17            | 414.43         | 114.74           |
| United India        | 1,430.44          | 1,409.34       | 21.10            |
| Universal Sompo     | 2,190.49          | 1,882.72       | 307.76           |
| Grand Total         | 50,852.11         | 47,602.41      | 3,249.70         |

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