Lok Sabha Question No. 2582 (UNSTARRED), answered on 2025-12-16
Subject: Review of the Progress of PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Basavaraj Bommai

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

## LOK SABHA UNSTARRED QUESTION NO. 2582

TO BE ANSWERED ON THE 16 TH  DECEMBER, 2025

## REVIEW OF THE PROGRESS OF PMFBY

2582.  SHRI BASAVARAJ BOMMAI:

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

be pleased to state: (a) whether the Government has reviewed the progress made so far and also the impact of Pradhan Mantri Fasal Bima Yojana (PMFBY); (b) if  so,  the  total  amount  of  premium  paid  by  farmers  under  the  scheme  since  its implementation  and  the  number  of  farmers  received  compensation  along  with  the  total amount disbursed to them, year/State-wise; (c) whether  any  major  improvements  emerged  in  the  PMFBY  in  comparison  to  the previous crop insurance schemes and if so, the details thereof; (d) whether  any  steps  are  being  taken  to  address  the  challenges/failures  on  the implementation of the scheme; and

(e) if so, the details thereof and if not, the reasons therefor?

## ANSWER

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

(a)  &  (b):  Department  of  Agriculture  and  Farmers  Wlefare  is  regularly  monitoring  the implementation of the Pradhan Mantri Fasal Bima Yojana (PMFBY) including functioning of insurance companies, timely settlement of claims through weekly video conferences of all stakeholders,  one  to  one  meeting  as  well  as  National  Review  Conferences.    In  addition, various  studies  including  impact  studies  have  also  been  made  from  time  to  time.      As  a result  of  various  improvements  made  in  the  scheme,  the  enrollment  of  farmers  in  the scheme was at all time high in 2024-25.

State-wise and Year-wise details of number of farmer applications enrolled, farmers share in premium, claims paid and number of farmer applications benefitted from 2016-17 to 2024-25 under the PMFBY are given in Annexure-I and II respectively.

(c) to (e): Details  of  improvements  made  in  PMFBY  over  erstwhile  schemes  are  as under :

- i) To address the demand of farmers, the scheme has been made voluntary for all farmers.
2. ii) Share  of  farmer  in  actuarial  premium  has  been  rationalized  for  crops  /  areas through out the country & reduced to a lower level subject to a  maximum  ceiling of  2%  of sum insured for Kharif foodgrains, pulses & oilseed crops, 1.50% for Rabi  foodgrains,  pulses  &  oilseed  crops  and  5%  for  Kharif  &  Rabi  annual commercial / annual horticultural crops.
3. iii) The remaining part of the actuarial/bidded premium is shared by the Central and State Government on 50 : 50 basis except in North Eastern States (from Kharif 2020)  and  in  Himalayan  States  (from  Kharif  2023)  where  it  is  90:10.    Earlier, sharing pattern for NER and Himalayan States was for 50 : 50.
4. iv) States have been given the option to choose original PMFBY or alternative risk management models of Cup & Cap model 80 : 110, Cup & Cap Model 60 : 130 and Profit sharing models as per their risk perception.
- v) In  addition  to  the  Scale  of  Finance  as  decided  by  the  District  Level  Technical Committee  (DLTC)  primarily based  on  cost of cultivation of crop in the district/area, one more option i.e. notional value of average yield  has been given to the States to decide the sum insured.
6. vi) The unit area of insurance has been reduced to village/village panchayat or any other equivalent unit as notified by State Government for major crops. For other crops it may be a unit of size of village/village panchayat or above as decided by the  State  Government.     Under  Restructured  Weather  Based  Crop  Insurance Scheme (WBCIS) Reference Unit Area (RUA) is notified by the State Government based on available Automatic Weather Stations (AWSs)/Automatic Rain gauge Stations (ARSs) in the area.
7. vii) The  coverage      of      post-harvest    losses  has  been  extended  throughout  the country and unseasonal rains has been included.
8. viii) Provision of selection of implementing agencies (insurance companies) through a transparent  bidding  process  for  a  period  of  3  year  in  a  go  instead  of  one year/season has been made to increase their commitment and accountability to the farmers in the area/State.
9. ix) For detailed plan for publicity and awareness, provision for earmarked expenditure of 0.5% of Gross premium per company per season has been made.
- x) Inclusion of Perennial horticultural crops  under the ambit of PMFBY.
11. xi) Mandatory capturing of Adhaar number - This would help in de-duplication
12. xii) In view of the demand of many states, option has been given to states to choose additional risk covers besides shortfall in yield-based cover depending upon the local weather challenges and requirements of the farmers.

Further,  Government  has  taken  various  steps  to  strengthen  implementation  of  this scheme all over India to ensure effective implementation, timely compensation and 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 settlement 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.
-  Opening  of  Escrow  account  has  been  made  mandatory  under  PMFBY  for ensuring  timely  release  of  state  share  of  subsidy  for  implementing  season, thereby  controlling  delayed  claim  settlement  to  eligible  farmers.  This  enable States to  ensure that  the  premium  subsidies payments  are  not  delayed beyond the prescribed timelines as per provisions of Operational Guidelines.

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.

Further, the  review/revisions /  rationalization /  improvements  in the crop insurance schemes is a continuous process and decision on suggestion/ representations/ recommendations of the stakeholders/studies are taken from time to time.   Based on the experience  gained,  views  of  various  stakeholders  and  with  a  view  to  ensure  better transparency,  accountability,  timely  payment  of  claims  to  the  farmers  and  to  make  the scheme  more  farmer  friendly, Government  has  periodically revised  the  Operational Guidelines  of  the  PMFBY  comprehensively  to  ensure that  the  eligible  benefits  under  the scheme reach the farmers timely and transparently.

Annexure-I

PMFBY & RWBCIS: State Wise details from 2016-17 to 2024-25 (as on 31st October 2025)

| State/UT Name    | Application Enrolled   | Premium collected from farmers   | Paid Claims    | Farmers Application Benefitted   |
|------------------|------------------------|----------------------------------|----------------|----------------------------------|
|                  | (In No.)               | (Rs. In Crore)                   | (Rs. In Crore) | (In No.)                         |
| A & N Islands    | 2,920                  | 0.05                             | 0.25           | 624                              |
| Andhra Pradesh   | 4,37,16,203            | 795.50                           | 5,575.64       | 59,58,221                        |
| Assam            | 62,88,099              | 35.49                            | 724.54         | 10,77,849                        |
| Bihar            | 52,31,142              | 402.54                           | 811.06         | 4,70,922                         |
| Chhattisgarh     | 4,35,44,198            | 1,627.25                         | 7,651.92       | 1,11,86,002                      |
| Goa              | 3,891                  | 0.19                             | 0.15           | 728                              |
| Gujarat          | 83,94,495              | 1,499.42                         | 5,737.24       | 30,05,111                        |
| Haryana          | 3,88,85,481            | 2,351.19                         | 9,006.35       | 81,85,047                        |
| Himachal Pradesh | 26,69,243              | 274.50                           | 607.57         | 11,43,155                        |
| Jammu & Kashmir  | 9,61,259               | 67.90                            | 156.88         | 2,65,772                         |
| Jharkhand        | 71,63,259              | 75.42                            | 857.29         | 8,66,732                         |
| Karnataka        | 2,23,55,687            | 2,536.34                         | 17,475.54      | 1,25,41,433                      |
| Kerala           | 9,63,528               | 76.17                            | 741.92         | 5,79,767                         |
| Madhya Pradesh   | 10,19,37,987           | 6,819.99                         | 31,722.62      | 3,02,86,712                      |
| Maharashtra      | 13,08,08,719           | 5,522.25                         | 44,978.38      | 6,20,50,428                      |
| Manipur          | 38,748                 | 3.75                             | 10.50          | 27,638                           |
| Meghalaya        | 91,819                 | 0.84                             | 24.49          | 34,148                           |
| Odisha           | 6,54,84,317            | 1,154.56                         | 7,179.76       | 1,13,15,566                      |
| Puducherry       | 1,97,592               | 1.44                             | 18.79          | 35,726                           |
| Rajasthan        | 19,42,16,079           | 6,827.46                         | 31,411.26      | 4,97,50,339                      |
| Sikkim           | 13,589                 | 0.46                             | 0.18           | 330                              |
| Tamil Nadu       | 3,81,69,842            | 1,396.75                         | 15,488.07      | 1,78,54,870                      |
| Telangana        | 39,04,037              | 696.38                           | 1,906.38       | 12,21,538                        |
| Tripura          | 14,00,683              | 3.78                             | 12.29          | 1,33,265                         |
| Uttar Pradesh    | 5,29,44,824            | 3,099.96                         | 5,801.19       | 91,55,286                        |
| Uttarakhand      | 20,00,126              | 344.77                           | 1,211.02       | 10,07,387                        |
| West Bengal      | 1,38,05,173            | 305.51                           | 1,262.78       | 19,14,960                        |
| Total            | 78,51,92,940           | 35,919.87                        | 1,90,374.05    | 23,00,69,556                     |

Annexure-II

| PMFBY & RWBCIS: Year Wise details from 2016-17 to 2024-25 (as on 31 st October 2025)   |
|----------------------------------------------------------------------------------------|

| Year    | Application Enrolled   | Premium collected from farmers   | Paid Claims    | Farmers Application Benefitted   |
|---------|------------------------|----------------------------------|----------------|----------------------------------|
|         | (In No.)               | (Rs. In Crore)                   | (Rs. In Crore) | (In No.)                         |
| 2016-17 | 5,85,88,795            | 4,120.78                         | 16,870.75      | 1,50,38,954                      |
| 2017-18 | 5,37,73,010            | 4,203.51                         | 22,231.34      | 1,78,42,813                      |
| 2018-19 | 5,79,24,389            | 4,814.17                         | 29,362.02      | 2,28,70,902                      |
| 2019-20 | 6,20,23,243            | 4,484.95                         | 28,018.74      | 2,45,67,818                      |
| 2020-21 | 6,24,55,870            | 4,048.87                         | 20,457.76      | 1,93,44,233                      |
| 2021-22 | 8,29,80,129            | 3,728.64                         | 20,563.65      | 3,43,65,103                      |
| 2022-23 | 11,24,87,613           | 3,980.71                         | 19,840.78      | 3,28,08,066                      |
| 2023-24 | 14,35,72,488           | 3,203.46                         | 20,773.33      | 3,70,64,583                      |
| 2024-25 | 15,13,87,403           | 3,334.79                         | 12,255.67      | 2,61,67,084                      |
| Total   | 78,51,92,940           | 35,919.87                        | 1,90,374.05    | 23,00,69,556                     |

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