Lok Sabha Question No. 4102 (UNSTARRED), answered on 2026-03-17
Subject: Allegations against Insurance Companies under PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Raja Ram Singh

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

## LOK SABHA UNSTARRED QUESTION NO. 4102

TO BE ANSWERED ON THE 17 TH   MARCH, 2026

## ALLEGATIONS AGAINST INSURANCE COMPANIES UNDER PMFBY

4102. Shri Raja Ram Singh:

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

- (a) whether the Government is aware that farmers of various States have staged protests alleging  non-payment  and  arbitrary  settlement  of  crop  insurance  claims  under  PMFBY, despite documented crop losses and if so, the details thereof;
- (b) the number of claims pending and amount unpaid during the last five agricultural seasons, State-wise;
- (c)  whether any inquiry has been ordered into allegations of manipulation of Crop Cutting Experiments (CCEs) and collusion between insurance companies and local officials; and
- (d) if so, the details of the steps taken to ensure time-bound and transparent settlement of claims in the States and methods to prevent such acts?

## ANSWER

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

- (a) & (b)  : As on 31.12.2025, out of the total reported claims of Rs.1.97 lakh crore since the inception of the scheme in 2016,  Rs.1.93 lakh crore (97.68 %) have already been paid to  the  farmers  under Pradhan Mantri Fasal  Bima Yojana (PMFBY).  State-wise details of claims reported, paid and pending during last five years i.e. from 2020-21 to 2024-25 under PMFBY are at Annexure .

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  issues  are  settled  after  their  resolution  as  per provisions of the scheme.

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  facilitate  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  PMFBY,  bring transparency and ensure timely settlement of claims under PMFBY :

-  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 National Crop Insurance Portal (NCIP) with Public Finance Management System (PFMS) and accounting system of Insurance Companies to provide timely & transparent processing of all claims.
-  W.e.f.  Kharif  2024,  in  case  payment  is  not  made  timely  by  Insurance  Company, penalty.of 12% is auto-calculated and levied through NCIP.
-  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.
-  12% penalty is also levied on State Government for delay in release of State share of subsidy.
-  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 for bringing financial discipline.
-  Also, towards leveraging technology in implementation of the scheme, various steps like  capturing of yield  data/Crop Cutting Experiments (CCEs) data through CCEAgri 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.
-  Tranche based claim settlement has been initiated w.e.f. Rabi 2024-25. Following  technologies  for  Objective  Crop  Damage  &  Loss  Assessment  and transparency  have  also  been  implemented  recently  w.e.f.  2023-24  under  the scheme:
-  YES-TECH  (Yield  Estimation  System  Based  on  Technology) for  gradual migration to Remote-Sensing based yield estimation to help in  fair and accurate Crop Yield Estimation . This initiative has been launched for paddy & wheat crops from Kharif 2023 and  Soybean crop from Kharif 2024 season.  YES-TECH is being implemented by 13 States/UTs during 2025-26.
-  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.   WINDS provides data not only for YES-TECH but also for effective drought & disaster management, accurate weather prediction.     So far, 10 States have initiated the implementation of WINDS.

Annexure

| PMFBY & RWBCIS: All India Claims Report from 2020-21 to 2024-25 as on 31.12.2025   |
|------------------------------------------------------------------------------------|

| State/UT Name    | Reported Claims   | Paid Claims    | Pending Claims   |
|------------------|-------------------|----------------|------------------|
|                  | (Rs. In Crore)    | (Rs. In Crore) | (Rs. In Crore)   |
| A & N Islands    | 0.05              | 0.05           | 0.00             |
| Andhra Pradesh   | 3,793.60          | 751.94         | 3,041.66         |
| Assam            | 639.85            | 617.84         | 22.01            |
| Chhattisgarh     | 3,713.87          | 3,712.42       | 1.44             |
| Goa              | 0.01              | 0.01           | 0.00             |
| Haryana          | 6,015.02          | 5,966.52       | 48.49            |
| Himachal Pradesh | 385.62            | 376.79         | 8.83             |
| Jammu & Kashmir  | 122.53            | 120.28         | 2.24             |
| Jharkhand        | 27.28             | -              | 27.28            |
| Karnataka        | 11,251.80         | 11,182.78      | 69.02            |
| Kerala           | 587.24            | 574.54         | 12.70            |
| Madhya Pradesh   | 13,923.73         | 13,877.83      | 45.90            |
| Maharashtra      | 27,115.96         | 26,812.78      | 303.18           |
| Manipur          | 6.90              | 6.74           | 0.16             |
| Meghalaya        | 24.30             | 24.08          | 0.21             |
| Odisha           | 2,594.33          | 2,583.67       | 10.67            |
| Puducherry       | 14.81             | 13.20          | 1.61             |
| Rajasthan        | 19,374.25         | 18,994.26      | 379.99           |
| Sikkim           | 0.04              | 0.03           | 0.01             |
| Tamil Nadu       | 5,961.62          | 5,917.27       | 44.35            |
| Tripura          | 9.78              | 9.67           | 0.11             |
| Uttar Pradesh    | 3,354.45          | 3,315.66       | 38.79            |
| Uttarakhand      | 1,168.26          | 1,119.45       | 48.81            |
| Total            | 100,085.31        | 95,977.84      | 4,107.48         |

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