Lok Sabha Question No. 431 (UNSTARRED), answered on 2025-02-04
Subject: Settlement of Agriculture Insurance Claims
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Deepender Singh Hooda

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

## LOK SABHA UNSTARRED QUESTION NO. 431

TO BE ANSWERED ON THE 4 TH  FEBRUARY, 2025

## SETTLEMENT OF AGRICULTURE INSURANCE CLAIMS

431. SHRI DEEPENDER SINGH HOODA:

Will  the  Minister  of  AGRICULTURE  AND  FARMERS  WELFARE क ृ िष एवं िकसान कʞाण मंũी be pleased to state: (a)  the  percentage  of  the  settlement  of  agriculture  insurance  claims  across  the  country,  Statewise/UT wise; (b) the details of claims made, insurance claim payouts and financial assistance made to farmers for crop loss during the last ten years, State-wise and year-wise; (c) whether modern technology is being used for quick and accurate assessment of crop yield/loss

- to affect speedy claim settlement under the  Pradhan Mantri Fasal Bima Yojana(PMFBY); and
- (d) if so, the details thereof and if not, the reasons therefor?

## ANSWER

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

(a) & (b) : Pradhan Mantri Fasal Bima Yojana (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 on receipt of State Government's requisite share in premium subsidy.   Farmers need not intimate crop loss in respect of these claims.     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.

These  claims  are  assessed  by  a  joint  committee  comprising  representatives  of  State Government and concerned insurance company.

Since inception of the scheme in 2016, total claims of Rs. 1,75,276.32 crore has been assessed, out of which, Rs. 1,72,138.36  crore has been paid (98.21%). Some claims remain pending due to incorrect/delayed submission of insurance proposals by banks; discrepancy in yield data & disputes between State Government and insurance companies,  delay in providing State Government share of funds etc.

State/UT-wise and year-wise details of claims paid to farmers since inception of the Scheme under PMFBY & RWBCIS is given in Annexure .

(c)  &  (d)  :  PMFBY  envisages  use  of  improved  technology  in  implementation  of  the  scheme. Accordingly,  Government  has  taken  following  steps  to  infuse  modern/  improved  technology  in implementation including quick and accurate assessment and settlement of the scheme :

-  National  Crop  Insurance  Portal  (NCIP) has  been  developed  for  ensuring  autoadministration, 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.
-  Digiclaim  : For  transparent  calculation  and  settlement  of  claims  by  insurance companies, a claims management module namely 'Digiclaim' has been developed w.e.f. Kharif 2022 season wherein all the claims are worked out through National Crop Insurance Portal  (NCIP)  and  paid  to  farmers'  accounts  using  Public  Finance  Management  System (PFMS). This ensures full cycle monitoring of claims right upto the farmer level.
-  Integration of Land Record with NCIP has been completed for Madhya Pradesh, Chhattisgarh, Andhra Pradesh, Maharashtra, Rajasthan, Karnataka and Odisha, wherein 90% of the insured area is now being validated through e-land records of the states through land record integration.
-  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. to improve timely settlement of the claims to farmers.

Further, following technology initiatives for Objective Crop Damage & Loss Assessment and transparency have been approved for implementation w.e.f. 2023-24:

-  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 and for Soyabean from Kharif 2024, where minimum 30% weightage to yield estimation will mandatorily be assigned to YES-TECH derived yield.
-  WINDS (Weather Information Network and Data System) for Network of Automatic Weather Stations (AWS) & Automatic Rain-Gauges (ARG) for collecting hyper-local weather  data  at  Block  and  Gram  Panchayat  level.    This  will  be  fed  into  a  National unified network of AWS & ARG with interoperability & sharing of data in coordination with India Meteorological Department (IMD).  WINDS will provide data not only for YES-TECH but also for effective drought & disaster management, accurate weather prediction and offering better parametric insurance products.
-  CROPIC (Collection of Real-time photos and Observations of Crops) for Geo-tagged photographs  for  validation  of  sown  Crop  with  Insured  Crop  and  use  of  pictorial analytics for Objective Crop Damage Assessment & Crop Yield Estimation.

Annexure State/UT-wise and year-wise details of claims paid to farmers since inception of the Scheme under PMFBY & RWBCIS

| State/ UT        | 2016-17       | 2017-18       | 2018-19       | 2019-20       | 2020-21       | 2021-22       | 2022-23       | 2023-24       |
|------------------|---------------|---------------|---------------|---------------|---------------|---------------|---------------|---------------|
| Name             | in INR Crores | in INR Crores | in INR Crores | in INR Crores | in INR Crores | in INR Crores | in INR Crores | in INR Crores |
| A & N Islands    | 0.15          | 0.00          | 0.09          | 0.00          | 0.00          | 0.00          | 0.00          | 0.00          |
| Andhra Pradesh   | 944.38        | 740.05        | 1,890.37      | 1,253.33      |               |               | 566.86        | 0.00          |
| Assam            | 5.37          | 1.22          | 2.77          | 107.30        | 192.19        | 273.30        | 16.87         | 32.73         |
| Bihar            | 347.85        | 401.52        |               |               |               |               |               |               |
| Chhattisgarh     | 159.97        | 1,391.38      | 1,087.42      | 1,303.73      | 887.23        | 1,432.83      | 533.98        | 518.65        |
| Goa              | 0.03          | 0.01          | 0.10          | 0.01          | 0.00          | 0.00          | 0.00          | 0.00          |
| Gujarat          | 1,267.22      | 1,075.83      | 2,778.02      | 490.48        |               |               |               |               |
| Haryana          | 298.23        | 898.93        | 948.30        | 938.00        | 1,285.51      | 1,714.26      | 2,496.89      | 224.43        |
| Himachal Pradesh | 45.26         | 64.71         | 55.01         | 67.55         | 84.83         | 77.60         | 24.40         | 21.48         |
| Jammu & Kashmir  |               | 9.82          | 23.64         |               |               | 56.05         | 6.04          | 31.87         |
| Jharkhand        | 31.09         | 47.18         | 778.77        | 27.75         |               |               |               |               |
| Karnataka        | 2,093.84      | 856.79        | 2,987.75      | 1,515.53      | 1,030.33      | 1,489.93      | 1,561.73      | 2,184.87      |
| Kerala           | 43.73         | 10.99         | 26.74         | 88.94         | 122.99        | 95.20         | 179.01        | 0.00          |
| Madhya Pradesh   | 2,043.85      | 5,881.35      | 3,782.78      | 6,195.53      | 7,792.36      | 2,909.92      | 1,027.48      | 565.28        |
| Maharashtra      | 2,317.85      | 3,315.69      | 6,144.15      | 6,758.35      | 1,559.65      | 4,613.47      | 5,032.19      | 8,492.49      |
| Manipur          | 1.96          | 0.67          | 0.00          | 1.14          | 0.00          | 1.48          | 1.62          | 1.98          |
| Meghalaya        | 0.03          | 0.02          | 0.22          | 0.18          | 0.07          |               | 0.01          | 8.63          |
| Odisha           | 432.75        | 1,820.12      | 1,170.50      | 1,157.72      | 572.44        | 1,045.88      | 568.01        | 209.03        |
| Puducherry       | 7.55          |               | 0.45          | 7.27          | 13.77         | 8.02          | 2.95          | 0.00          |
| Rajasthan        | 1,917.40      | 2,242.59      | 3,454.51      | 5,087.84      | 4,357.51      | 5,176.77      | 4,141.98      | 2,066.02      |
| Sikkim           | 0.11          | 0.04          | 0.00          | 0.00          | 0.02          | 0.53          | 0.00          | 0.00          |
| Tamil Nadu       | 3,646.22      | 2,097.29      | 2,663.90      | 1,214.00      | 2,681.31      | 836.07        | 898.58        | 704.29        |
| Telangana        | 179.60        | 648.43        | 572.23        | 507.96        |               |               |               |               |
| Tripura          | 0.71          | 1.00          | 0.02          | 0.81          | 2.60          | 2.63          | 0.28          | 0.00          |
| Uttar Pradesh    | 574.57        | 380.88        | 469.17        | 1,084.66      | 507.06        | 988.00        | 945.65        | 396.62        |
| Uttarakhand      | 27.47         | 39.45         | 72.38         | 103.24        | 134.86        | 122.86        | 207.21        | 46.51         |
| West Bengal      | 421.69        | 261.11        | 535.73        |               |               |               |               |               |
| All India        | 16,808.8 5    | 22,187.08     | 29,445.00     | 27,911.32     | 21,224.74     | 20,844.77     | 18,211.73     | 15,504.87     |

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