Union Agriculture Minister Shri Shivraj Singh Chouhan took decisive action on November 3, 2025, addressing mounting concerns over irregularities in crop insurance claim settlements under the Pradhan Mantri Fasal Bima Yojana (PMFBY). The move comes after numerous complaints from farmers, particularly in Maharashtra and Madhya Pradesh, who reported receiving claim amounts as meager as ₹1 or ₹3 despite substantial crop losses.
High-level Meeting in Delhi: Voices of Farmers Heard
During a high-level meeting at Krishi Bhawan, Delhi, Shri Shivraj Singh Chouhan listened directly to the grievances of affected farmers via virtual connection. He expressed strong displeasure over reports of nominal claim amounts, terming such payouts a “mockery of farmers.” The minister insisted the government would not tolerate such discrepancies and ordered an immediate thorough investigation into these cases.
Strict Instructions to Insurance Companies and Officials
Shri Shivraj Singh issued strict directives to insurance firms and officials to expedite claim disbursements and ensure that settlements are processed quickly and collectively. He emphasized that accurate and scientific methods must be used for damage assessment, and any discrepancies must be resolved without delay. State officials who joined virtually, including those from Maharashtra, were tasked with investigating complaints and ensuring that no farmer is unjustly treated.
Addressing Structural Issues and Policy Gaps
The minister raised concerns about damage assessment methodologies—such as remote sensing—and questioned why some claims were so low even when losses were evident. He directed a review of guideline provisions and recommended field-level investigations. Insurance companies were told to send representatives for all survey activities to maintain transparency. States have also been warned against delaying their premium subsidies, as these delays impact claim payments to farmers, and would henceforth attract a 12% interest penalty in cases of late contributions by the states.
Ensuring Farmers’ Rights and Future Reforms
Shri Shivraj Singh Chouhan reiterated that the Central Government, under Prime Minister Shri Narendra Modi’s leadership, will not allow the PMFBY to become a symbolic gesture. Instead, it must remain a genuine safety net for farmers against natural calamities. The minister called for further suggestions from officials, insurance representatives, and farmers themselves to continue strengthening the crop insurance scheme and ensure it delivers justice and relief as intended.
Conclusion
The Union Agriculture Minister’s actions underscore the government’s commitment to safeguarding farmers’ interests. With a probe underway and policy reforms on the horizon, there is a renewed push towards restoring trust in crop insurance and ensuring timely, fair claim settlements for all affected cultivators.
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Source: PIB
