Pending Crop Insurance Claims Under PMFBY: Challenges and Resolutions

Pending Crop Insurance Claims Under PMFBY: Challenges and Resolutions
Pending Crop Insurance Claims Under PMFBY: Challenges and Resolutions

Recent data has exposed a substantial bottleneck in the Pradhan Mantri Fasal Bima Yojna (PMFBY), as a noteworthy backlog of crop insurance claims, totaling approximately Rs. 2,716.10 crore, remained unresolved until the fiscal year 2021-22. Notably, Rajasthan takes the lead with the highest quantum of pending claims, closely followed by Maharashtra and Gujarat.

The complexities surrounding the prolonged resolution of these claims have been elucidated by Agriculture Minister Narendra Singh Tomer. These intricacies encompass late submissions of yield data, delayed disbursement of the government’s share of premium subsidies, and disputes concerning yield-related matters between insurance companies and state entities. Collectively, these hurdles conspire to create protracted waiting periods for farmers eager to access their rightfully deserved compensation.

Rajasthan emerges as the epicenter of this predicament, bearing the brunt of the backlog with a staggering Rs. 1,378.34 crore in pending claims. Maharashtra trails behind with Rs. 336.22 crore, followed closely by Gujarat with Rs. 258.87 crore. Karnataka and Jharkhand also contribute to the unresolved claims tally, with Rs. 132.25 crore and Rs. 128.24 crore, respectively.

Acknowledging the process’s intricacies, the Agriculture Minister emphasizes that the primary tasks related to assessing crop yields and losses for calculating admissible claims are being conducted by the respective state governments or joint committees comprising state officials and representatives from insurance companies.

Efforts Towards Resolution: Tackling the Backlog and Enhancing Transparency

In response to mounting complaints about non-payment and delayed settlement of claims against insurance companies during PMFBY implementation, certain states have made commendable strides in addressing these concerns.

To expedite claim settlements and eliminate bottlenecks, the government has decoupled the central subsidy share from the states’ subsidy share for the period spanning Kharif 2018 to Rabi 2020-21. This strategic move ensures timely compensation for farmers.

In an earnest pursuit of transparency and accountability, the government has escalated its oversight of insurance companies. Weekly video conferences have been instituted to facilitate the punctual resolution of claims. A transformative step was also introduced with the launch of the “Digiclaim Module” from Kharif 2022 onwards. This innovative system interlinks the National Crop Insurance Portal (NCIP), the Public Financial Management System (PFMS), and the accounting frameworks of insurance companies. Through this cohesive approach, the government endeavors to enhance efficiency and transparency in the intricate claim processing landscape.