Archive · 28 Sep 2025
Study: Delays in PMFBY Claims Hamper Farmers, Need Reforms
Imagine farmers buy insurance to protect their crops.
This insurance, called PMFBY, helps them if their crops get damaged.
However, a new study found that farmers sometimes have to wait up to a year or more to get their insurance money after their crops are damaged.
This makes it hard for them to grow new crops because they don't have money to buy seeds or equipment.
The study recommends changes to speed up the process and make it easier for farmers to get their money on time, which is key to the success of the scheme.
Study reveals many farmers face delays, up to 14 months, in receiving insurance claims under PMFBY.
The study recommends streamlining claims processes, using technology, and enforcing strict timelines.
Expansion of crop insurance coverage to include more crops and risk types like wild animals and wildfires is advised.
Low insurance literacy among non-loanee farmers leads them to see insurance as an added cost.
Over Rs 1.82 lakh crore paid to farmers since 2016, with 4.19 crore enrolled in 2024-25.
- Who
- Farmers enrolled in the Pradhan Mantri Fasal Bima Yojana (PMFBY)
- What
- Facing delays in claim settlements under the PMFBY crop insurance scheme.
- When
- Since the launch of the scheme in 2016, with a recent study focusing on its impact.
- Where
- India, specifically impacting farmers who have utilized the PMFBY.
- Why
- Study indicated delays undermine timely reinvestment. Additionally, cumbersome enrollment procedures and weak outreach contribute.
Farmers
Insurance Providers/Government
Timeliness of Claims
Farmers
Experiencing long delays (up to 14 months) in receiving claim settlements, hindering timely reinvestment.
Insurance Providers/Government
Facing challenges in processing claims efficiently; striving to streamline processes and adhere to timelines.
Transparency and Accessibility
Farmers
Low transparency in premium deductions, and cumbersome enrollment procedures.
Insurance Providers/Government
Working to improve user-friendly processes, including digital tracking, while ensuring that schemes must evolve beyond risk transfer
- Scheme Name
- Pradhan Mantri Fasal Bima Yojana (PMFBY)
- Claim Settlement Delay
- Up to 14 months
- Farmers Enrolled (2024-25)
- 4.19 crore
- Total Premiums Paid by Farmers (since 2016)
- Rs 35,864 crore
- Compensation Paid to Farmers (since 2016)
- Rs 1.82 lakh crore
- Central Govt Expenditure (FY25)
- Rs 15,864 crore
