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Shivraj Singh Orders Probe into ₹1 Crop Insurance Claims

RR Team, November 4, 2025
Union Minister for Agriculture and Farmers’ Welfare, Shri Shivraj Singh Chouhan, has taken strong exception to reports of farmers receiving meagre crop insurance claims under the Pradhan Mantri Fasal Bima Yojana (PMFBY). In a high-level meeting held in Delhi, he directed immediate investigations into cases where claims as low as ₹1, ₹3, and ₹5 were disbursed, terming it a “mockery of farmers.”
During the review, the Minister connected virtually with farmers from Maharashtra’s Akola and other districts to hear their grievances first-hand. He assured them that no farmer will be harassed in the process of claim settlement and promised strict action against any irregularities by insurance firms or officials.

‘Mockery of Farmers Won’t Be Tolerated’

Shri Chouhan expressed deep displeasure at the anomalies in crop insurance claim assessments, calling such payouts unjust and unacceptable. “Receiving ₹1 or ₹5 as compensation is a joke on the hard work of farmers. The government will not allow this to continue,” he said. He directed officials to ensure that claims are assessed accurately and settled swiftly and simultaneously.

The Minister ordered that insurance companies and government departments work in full coordination so that claim processing becomes transparent and error-free. He also emphasised that delays caused by states in contributing their subsidy share should not affect the central government’s image.

Farmers’ Grievances Heard Directly

Farmers from Sehore (Madhya Pradesh) and Akola (Maharashtra) shared instances of receiving negligible compensation despite severe crop losses. Shri Chouhan questioned officials on how such calculations were made and demanded a review of the existing claim assessment methodology.

“When a farmer’s damage is recorded as 0.0048 percent, yet the claim amount is ₹1, it raises serious questions about the system’s credibility,” he said, directing the Sehore District Collector to join the meeting virtually and provide detailed information.

Scientific and Transparent Assessment Ordered

Calling for scientific reforms, the Minister instructed the PMFBY CEO to conduct field-level inquiries into all cases with extremely low claim values. He stressed the use of precise technology-based damage assessment methods, including remote sensing and satellite imagery, to ensure fairness and accuracy in the process.

He further directed that insurance company representatives must be physically present during crop loss surveys to prevent discrepancies and ensure transparency. Any official or company found responsible for misleading farmers or delaying claims will face strict consequences, he added.

Accountability from States and Insurers

Shri Chouhan criticised state governments that delay depositing their share of premium subsidies, which often leads to claim settlement delays. He instructed that states causing such delays be charged 12% interest as per existing policy and demanded proactive coordination among all stakeholders.

“Why should the Centre be blamed for states’ negligence?” the Minister questioned, adding that the government’s priority is to ensure farmers receive their rightful compensation without unnecessary bureaucracy.

Focus on Reforms and Technology Integration

To prevent such issues in the future, the Minister urged the development of a digital monitoring mechanism under PMFBY that can provide real-time updates on claim processing and damage verification. He also invited suggestions from district collectors, agricultural officers, and insurance firms to strengthen the scheme’s credibility and impact.

“Our goal is clear transparency, speed, and justice for every farmer,” Shri Chouhan concluded.

Under the leadership of Prime Minister Narendra Modi, PMFBY has been instrumental in protecting farmers from financial distress caused by natural calamities. However, the recent discrepancies have raised concerns about operational loopholes that the government now aims to eliminate through targeted reforms and strict supervision.

News #AgricultureIndia#CropInsurance#FarmersWelfare#KrishiBhawan#MaharashtraFarmers#PMFBY#PMModi#SehoreDistrict#ShivrajSinghChouhan

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