Lok Sabha Question No. 4230 (UNSTARRED), answered on 2025-08-19
Subject: Complaints of Non-Payment of PMFBY Claims
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Vijay Kumar Dubey

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

## LOK SABHA

## UNSTARRED QUESTION NO. 4230

TO BE ANSWERED ON THE 19 TH  AUGUST, 2025

## COMPLAINTS OF NON-PAYMENT OF PMFBY CLAIMS

4230. SHRI VIJAY KUMAR DUBEY:

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

(a)  whether  the  claims  paid  by  the  insurance  companies  exceed  the  total  premiums received under Pradhan Mantri Fasal Bima Yojana (PMFBY);

(b) if so, the details thereof along with the suitable examples;

(c) whether the Government frequently receives complaints from farmers regarding nonpayment of PMFBY claims or delayed payments;

(d) if so, the steps taken by the Government to resolve these issues; and

(e)  whether  special  measures  have  been taken  by the  Government  to  address  cases where insurance companies fail to make payments within the prescribed time-limit and if so, the details thereof?

## ANSWER

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

(a) & (b):    Crop insurance is a major risk mitigation tool for the benefit of farmers in the event  of  non-preventable  natural  calamities.  It  may  be  noted  that  insurance  is  not  an investment. Insurance is all about spreading the risk spatially & temporally. Insurers save premium in good seasons/years and pay high claims, if any, in bad years from the savings made in the good years.

Claims  in  excess  of  100%  of  premium  received  has  been  paid  by  insurance companies in case of natural calamities during different seasons. Year-wise, season-wise details of such States/UTs where insurance companies paid claims in excess of the total premium collected is given at Annexure .

(c) to (e): As on 30.06.2025, out of the total reported claims of Rs.1.88 lakh crore since beginning of the scheme in 2016,  Rs.1.83 lakh crore (97.34 %) 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.

Government has taken various steps to strengthen implementation of this scheme, 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 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.
-  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.

High Claim Ratio States under PMFBY (as on 30.06.2025)

| Season       | State/UT Name            | Gross Premium   | Paid Claims    | Claim Ratio   |
|--------------|--------------------------|-----------------|----------------|---------------|
|              |                          | Rs. In Crore    | Rs. In Crore   | Rs. In Crore  |
| Kharif 2016  | Karnataka                | 837.89          | 1,227.72       | 147%          |
| Kharif 2016  | Kerala                   | 8.57            | 17.92          | 209%          |
| Kharif 2016  | Tamil Nadu               | 9.98            | 10.60          | 106%          |
| Rabi 2016-17 | Andhra Pradesh           | 133.03          | 296.17         | 223%          |
| Rabi 2016-17 | Karnataka                | 482.98          | 866.12         | 179%          |
| Rabi 2016-17 | Kerala                   | 24.58           | 25.81          | 105%          |
| Kharif 2017  | Tamil Nadu               | 1,161.25        | 3,635.62       | 313%          |
|              | Chhattisgarh             | 289.49          | 1,312.19       | 453%          |
|              | Haryana                  | 298.62          | 808.35         | 271%          |
|              | Madhya Pradesh           | 3,269.72        | 5,561.15       | 170%          |
|              | Odisha                   | 800.50          | 1,777.28       | 222%          |
|              | Tamil Nadu               | 50.29           | 90.51 621.94   | 180% 102%     |
| Rabi 2017-18 | Telangana Andhra Pradesh | 611.45 146.60   | 211.71         | 147%          |
|              |                          |                 | 79.19          | 109%          |
|              | Chhattisgarh             | 72.39           |                |               |
|              | Tamil Nadu               | 1,222.98        | 2,006.78       | 165%          |
| Kharif 2018  | Andhra Pradesh           | 1,124.08        | 1,277.73       | 114%          |
|              | Chhattisgarh             | 810.94          | 1,024.62       | 126%          |
|              | Haryana                  | 568.92          | 806.32         | 142%          |
|              | Jharkhand                | 386.13          | 738.15         | 191%          |
|              | Karnataka                | 1,380.60        | 1,934.66       | 140%          |
|              | Kerala                   | 12.81 1,114.83  | 15.36 1,129.89 | 120% 101%     |
|              | Odisha Rajasthan         | 2,417.83        | 2,680.78       | 111%          |
|              | Tamil Nadu               | 67.31           | 112.16         | 167%          |
|              | Uttarakhand              | 41.49           | 47.67          | 115%          |
| Rabi 2018-19 | Andhra Pradesh           | 296.66          | 614.69         | 207%          |
| Rabi 2018-19 | Jharkhand                | 11.30           | 13.00          | 115%          |
| Rabi 2018-19 | Karnataka                | 416.15          | 1,053.10       | 253%          |
| Rabi 2018-19 | Maharashtra              | 1,470.41        | 2,010.59       | 137%          |
| Rabi 2018-19 | Odisha                   | 8.45            | 30.48          | 361%          |
| Rabi 2018-19 | Tamil Nadu               | 1,581.38        | 2,541.37       | 161%          |
| Rabi 2018-19 | Telangana                | 51.80           | 81.22          | 157%          |
| Kharif 2019  | Himachal Pradesh         | 7.12            | 8.63           | 121%          |
| Kharif 2019  | Kerala                   | 39.08           | 54.09          | 138%          |
| Kharif 2019  | Madhya Pradesh           | 2,787.67        | 5,972.20       | 214%          |
| Kharif 2019  | Maharashtra              | 4,789.69        | 5,954.96       | 124%          |
| Kharif 2019  | Tamil Nadu               | 123.24          | 167.28         | 136%          |
| Kharif 2019  | Uttar Pradesh            | 721.97          | 786.55         | 109%          |
| Rabi 2019-20 | Chhattisgarh             | 77.26           | 638.67         | 827%          |
| Rabi 2019-20 | Kerala                   | 33.42           | 33.82          | 101%          |
| Rabi 2019-20 | Odisha                   | 10.85           | 99.26          | 915%          |
| Kharif 2020  | Haryana                  | 963.51          | 1,007.36       | 105%          |
| Kharif 2020  | Kerala                   | 45.01           | 81.38          | 181%          |
|              | Madhya Pradesh           | 4,696.43        | 7,074.95       | 151%          |
|              | Tamil Nadu               | 151.56          | 166.66         | 110%          |
|              | Chhattisgarh             | 190.56          | 248.56         | 130%          |
| Rabi 2020-21 | Kerala                   | 38.21           | 45.78          | 120%          |
| Kharif 2021  | Assam                    | 71.50           | 85.63          | 123%          |

| Haryana          | 870.01   | 1,382.86   | 159%   |
|------------------|----------|------------|--------|
| Jammu & Kashmir  | 23.73    | 50.73      | 214%   |
| Rajasthan        | 3,564.19 | 3,878.24   | 109%   |
| Assam            | 74.14    | 170.78     | 253%   |
| Chhattisgarh     | 203.67   | 402.18     | 197%   |
| Kerala           | 58.12    | 64.62      | 111%   |
| Haryana          | 956.86   | 2,004.59   | 212%   |
| Kerala           | 64.59    | 100.06     | 155%   |
| Haryana          | 350.37   | 514.07     | 148%   |
| Kerala           | 73.36    | 82.96      | 113%   |
| Maharashtra      | 1,098.18 | 1,346.60   | 123%   |
| Odisha           | 9.97     | 11.63      | 118%   |
| Rajasthan        | 2,607.05 | 2,670.70   | 103%   |
| Himachal Pradesh | 18.98    | 27.66      | 147%   |
| Karnataka        | 2,559.74 | 3,159.37   | 124%   |
| Maharashtra      | 7,815.18 | 7,894.65   | 102%   |
| Meghalaya        | 10.59    | 14.04      | 138%   |
| Chhattisgarh     | 279.84   | 390.44     | 140%   |
| Uttarakhand      | 180.89   | 265.68     | 147%   |
| Tamil Nadu       | 25.79    | 60.37      | 278%   |
| Uttarakhand      | 82.42    | 153.47     | 186%   |

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