SRINAGAR: Crop insurance claims worth Rs 122.52 crore were reported by farmers in Jammu and Kashmir under the Pradhan Mantri Fasal Bima Yojana (PMFBY) over the past five years, of which Rs 120.28 crore has been settled, leaving pending claims of about Rs 2.24 crore, the Union Government informed the Lok Sabha on Tuesday.
The figures, placed before Parliament by the Ministry of Agriculture and Farmers Welfare, show that the Union Territory has one of the lowest pendency levels in the country, with the overwhelming majority of admissible claims already paid to insured farmers.
According to the official data, during the Kharif seasons between 2020-21 and 2024-25, claims amounting to Rs 112.24 crore were reported from Jammu and Kashmir. Of these, Rs 110.26 crore has been paid, while claims worth Rs 1.98 crore remain pending.
During the corresponding Rabi seasons, claims of Rs 10.28 crore were reported, of which Rs 10.02 crore has been settled, leaving Rs 0.26 crore pending.
The Ministry said most admissible claims under PMFBY are settled within the timelines prescribed in the scheme’s operational guidelines. However, delays in some cases across states occur due to late release of the state government’s share of premium subsidy, incorrect or delayed submission of insurance proposals by banks, and discrepancies in yield data or disputes between state governments and insurance companies.
To improve transparency and speed up settlements, the Centre has introduced several technology-driven measures. These include the National Crop Insurance Portal as a single platform for enrollment, subsidy release and direct transfer of claim amounts into farmers’ bank accounts, and the Digiclaim module integrated with the Public Finance Management System to ensure faster and transparent processing of claims.
The government has also delinked the central share of premium subsidy from the state share to enable proportionate settlement of claims, and made the opening of escrow accounts by states mandatory for advance deposit of their premium share.
Use of technology for yield estimation and loss assessment has also been expanded. The YES-TECH system employs remote sensing for crop yield estimation, while the Weather Information Network and Data System is creating a network of automatic weather stations and rain gauges to provide hyper-local weather data for more accurate assessment of crop losses.
The Ministry said insurance companies are liable to pay a 12 per cent penalty for delays in settlement of claims, which is auto-calculated through the portal.
The PMFBY provides risk coverage to farmers against crop losses due to natural calamities, pests and diseases, and is aimed at stabilising farm incomes. The government said steps taken in recent years have helped reduce pendency and ensure timely payment of insurance benefits to farmers, including those in Jammu and Kashmir.
