Lok Sabha Question No. 4292 (UNSTARRED), answered on 2025-08-19
Subject: Accountability of Insurance Companies under PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Balya Mama Suresh Gopinath Mhatre

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

## LOK SABHA UNSTARRED QUESTION NO. 4292

TO BE ANSWERED ON THE 19 TH  AUGUST, 2025

## ACCOUNTABILITY OF INSURANCE COMPANIES UNDER PMFBY

4292.  SHRI BALYA MAMA SURESH GOPINATH MHATRE:

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

- (a)  whether  a  significant  number  of  farmers  received  compensation  late  or  have  not received compensation, from the insurance companies under the Pradhan Mantri Fasal Bima Yojana (PMFBY) despite suffering crop losses;
- (b) whether an inordinate delay in the disbursement of compensation by the insurance companies to farmers has come to the notice;
- (c) if so, the number of farmers who did not receive compensation or whose claims were rejected in the last three years, State-wise;
- (d)  whether  the  Government  has  taken  any  action  to  hold  the  insurance  companies accountable in these cases; and
- (e) the corrective measures taken by the Government to ensure transparent and timely disbursement of compensation?

## ANSWER

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

(a) to (c) :   Pradhan Mantri Fasal Bima Yojana (PMFBY) is mainly implemented on 'Area Approach' basis, where no intimation is required to be made by the farmers or the concerned State  Government.    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.  Therefore, there is no rejection of the claim by the insurance company in this case.

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.  Farmers  are required to intimate the loss to the concerned insurance company, State Government, financial institutions/banks,  online  on  National  Crop  Insurance  Portal  (NCIP)  or  PMFBY  app  etc. Extent of loss and  claims are assessed by a joint committee comprising representatives of State  Government  and  concerned  insurance  company.      The  insurance  companies scrutinise  these  loss  intimations  as  per  provisions  of  the  Operational  Guidelines  of  the scheme  and  such  claims  can  be  rejected  by  insurance  companies  if  they  are  in contravention to guidelines.

O.I.H.

Majority of the claims are settled  within the stipulated timelines under the Operational Guidelines  of  the  scheme  i.e  within  21  days  of  the  receipt  requisite  yield  data  from  the concerned  State  Government,    by  the  insurance  companies.        However,  during  the implementation of PMFBY, some complaints/grievances 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.    Out  of  the  total  claims  of  Rs.  1.88  lakh  crore  generated  on  NCIP  till 30.06.2025, Rs. 1.83 lakh crore (97.34%)  have already been paid to the farmers.  The rest of the claims is due on account of non-receipt of premium subsidy from State Government non payment/delayed payment/under payment due to incorrect proposals by banks  and disputes in yield data etc.

State-wise details of number of farmer applications enrolled, claims paid and number of farmers benefitted i.e. who received claims during last three years i.e. from 2022-23 to 2024-25 (upto Kharif 2024) are given in Annexure.

(d) & (e): 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.
-  Provision of 12% penalty on delay in payment of claims by insurance company is auto calculated on National Crop Insurance Portal (NCIP).

*****

## Annexure

State-wise details of number of farmer applications enrolled, claims paid and number of farmers benefitted i.e. who received claims during last three years i.e. from 2022-23 to 2024-25 (upto Kharif 2024) under PMFBY and RWBCIS (As on 30.06.2025)

| State            | 2022-23                               | 2022-23               | 2022-23                          | 2023-24                               | 2023-24               | 2023-24                          | 2024-25 (upto Kharif 2024)       | 2024-25 (upto Kharif 2024)   | 2024-25 (upto Kharif 2024)   | Total                                 | Total                 | Total                            |
|------------------|---------------------------------------|-----------------------|----------------------------------|---------------------------------------|-----------------------|----------------------------------|----------------------------------|------------------------------|------------------------------|---------------------------------------|-----------------------|----------------------------------|
| State            | Farmers Applications Insured (In No.) | Paid Claims (In Crs.) | Applications Benefitted (In No.) | Farmers Applications Insured (In No.) | Paid Claims (In Crs.) | Applications Benefitted (In No.) | Applications Benefitted (In No.) | Paid Claims (In Crs.)        | Farmers Benefitted (In No.)  | Farmers Applications Insured (In No.) | Paid Claims (In Crs.) | Applications Benefitted (In No.) |
| A & N Islands    | 171                                   | -                     | 7                                | 187                                   | 0.02                  | 86                               | 150                              | -                            | 39                           | 508                                   | 0.02                  | 132                              |
| Andhra Pradesh   | 1,23,87,364                           | 546.73                | 6,29,229                         | 1,31,29,912                           | -                     | -                                | 85,43,555                        | -                            | -                            | 3,40,60,831                           | 546.73                | 6,29,229                         |
| Assam            | 4,89,981                              | 19.98                 | 26,240                           | 7,93,506                              | 58.21                 | 99,561                           | 7,61,951                         | 8.89                         | 20,817                       | 20,45,438                             | 87.07                 | 1,46,618                         |
| Chhattisgarh     | 77,30,456                             | 534.27                | 15,31,966                        | 81,25,985                             | 588.25                | 15,00,347                        | 67,56,016                        | 111.45                       | 2,50,598                     | 2,26,12,457                           | 1,233.97              | 32,82,911                        |
| Goa              | 403                                   | 0.00                  | 5                                | 234                                   | 0.00                  | 2                                | 216                              | 0.01                         | 64                           | 853                                   | 0.01                  | 71                               |
| Haryana          | 14,51,535                             | 2,518.66              | 7,52,993                         | 1,02,67,729                           | 265.23                | 25,15,329                        | 94,27,621                        | 262.63                       | 17,24,053                    | 2,11,46,885                           | 3,046.52              | 49,92,375                        |
| Himachal Pradesh | 2,67,618                              | 69.06                 | 1,39,516                         | 2,78,055                              | 131.70                | 1,07,964                         | 1,09,605                         | 0.00                         | 31,257                       | 6,55,278                              | 200.77                | 2,78,737                         |
| Jammu & Kashmir  | 91,582                                | 6.33                  | 17,903                           | 2,45,757                              | 34.62                 | 73,579                           | 1,47,346                         | 23.25                        | 72,354                       | 4,84,685                              | 64.20                 | 1,63,836                         |
| Jharkhand        | -                                     | -                     | -                                | -                                     | -                     | -                                | 25,48,512                        | -                            | 31,825                       | 25,48,512                             | -                     | 31,825                           |
| Karnataka        | 27,18,915                             | 2,386.06              | 18,40,873                        | 30,77,232                             | 3,349.62              | 23,60,145                        | 30,48,823                        | 1,163.81                     | 10,25,637                    | 88,44,970                             | 6,899.50              | 52,26,655                        |
| Kerala           | 1,46,546                              | 183.01                | 1,30,053                         | 1,74,102                              | 47.68                 | 28,695                           | 92,743                           | -                            | -                            | 4,13,391                              | 230.69                | 1,58,748                         |
| Madhya Pradesh   | 1,77,32,045                           | 1,049.47              | 36,88,740                        | 1,77,95,826                           | 776.16                | 39,43,417                        | 97,17,150                        | -                            | 32,64,868                    | 4,52,45,021                           | 1,825.63              | 1,08,97,025                      |
| Maharashtra      | 1,07,33,625                           | 5,390.90              | 76,44,275                        | 2,41,73,494                           | 9,522.62              | 1,32,27,119                      | 1,64,14,758                      | 3,588.69                     | 73,92,889                    | 5,13,21,877                           | 18,502.22             | 2,82,64,283                      |
| Manipur          | 4,066                                 | 1.62                  | 3,395                            | 5,073                                 | 2.00                  | 4,170                            | 4,619                            | -                            | -                            | 13,758                                | 3.62                  | 7,565                            |
| Meghalaya        | 337                                   | 0.01                  | 68                               | 38,569                                | 14.04                 | 14,398                           | 47,749                           | 9.49                         | 18,952                       | 86,655                                | 23.54                 | 33,418                           |
| Odisha           | 80,20,747                             | 581.04                | 17,83,312                        | 1,41,60,653                           | 232.56                | 11,49,287                        | 1,37,81,469                      | 112.05                       | 7,30,087                     | 3,59,62,869                           | 925.65                | 36,62,686                        |
| Puducherry       | 38,274                                | 3.55                  | 7,263                            | 42,344                                | 0.92                  | 5,846                            | 8,781                            | 0.52                         | 5,857                        | 89,399                                | 4.99                  | 18,966                           |
| Rajasthan        | 3,90,71,541                           | 4,360.35              | 1,16,18,304                      | 3,90,16,977                           | 3,062.62              | 83,11,462                        | 2,15,31,458                      | 0.00                         | 27,20,571                    | 9,96,19,976                           | 7,422.96              | 2,26,50,337                      |
| Sikkim           | 5,025                                 | -                     | -                                | 3,104                                 | -                     | 23                               | 489                              | -                            | -                            | 8,618                                 | -                     | 23                               |
| Tamil Nadu       | 61,37,961                             | 917.01                | 19,37,875                        | 54,56,594                             | 759.68                | 17,00,553                        | 3,15,826                         | 60.37                        | 1,48,721                     | 1,19,10,381                           | 1,737.06              | 37,87,149                        |
| Tripura          | 3,56,201                              | 2.03                  | 20,515                           | 3,65,378                              | 1.88                  | 10,905                           | 8,231                            | 0.46                         | 3,554                        | 7,29,810                              | 4.36                  | 34,974                           |
| Uttar Pradesh    | 42,83,991                             | 977.14                | 12,51,998                        | 60,68,754                             | 467.70                | 11,84,713                        | 50,72,290                        | 279.42                       | 14,41,310                    | 1,54,25,035                           | 1,724.26              | 38,78,021                        |
| Uttarakhand      | 2,82,068                              | 207.94                | 1,99,847                         | 2,27,291                              | 347.07                | 1,71,124                         | 1,28,244                         | 153.47                       | 92,045                       | 6,37,603                              | 708.48                | 4,63,016                         |
| Total            | 11,19,50,452                          | 19,755.17             | 3,32,24,377                      | 14,34,46,756                          | 19,662.59             | 3,64,08,725                      | 9,84,67,602                      | 5,774.51                     | 1,89,75,498                  | 35,38,64,810                          | 45,192.26             | 8,86,08,600                      |

- -Not Implemented/Very low figure