Government Makes Crop Insurance Easier for Remote Area Farmers

Farmers in remote districts face unique challenges when accessing government schemes. The Pradhan Mantri Fasal Bima Yojana (PMFBY), India’s flagship crop insurance program, has enrolled over one lakh farmers from two remote Assam districts in the past five years. However, the government recognizes that reaching farmers in distant areas requires special efforts and continuous improvements.

Coverage in Remote Districts

Between 2020-21 and 2024-25, the crop insurance scheme enrolled 72,011 farmers from Karbi Anglong district and 30,950 farmers from Dima Hasao district in Assam. These remote regions present specific difficulties—difficult terrain, limited connectivity, and scattered populations make both enrollment and claim settlement more complex than in accessible areas.

The PMFBY operates as a voluntary program for both states and farmers. State governments handle most operational tasks, including selecting which crops and areas to cover, choosing insurance companies through transparent bidding, enrolling farmers, assessing crop losses, and processing claims. This decentralized approach allows states to adapt the program to local conditions.

How the System Works

State governments and insurance companies share responsibilities under clear guidelines. They upload data about expected crop yields and actual yields to the National Crop Insurance Portal (NCIP). The system then calculates claims and transfers money directly to farmers’ bank accounts. This digital approach eliminates middlemen and reduces delays.

Making Claims Faster and Transparent

The government has introduced several reforms to speed up claim payments and increase transparency. The National Crop Insurance Portal serves as the central database for the entire program. Farmers can enroll directly online, officials can monitor the process closely, and the system ensures claims reach farmers’ accounts electronically.

Starting from Kharif 2022, the government launched the ‘Digiclaim Module’ to track every claim payment. This module connects the insurance portal with the Public Finance Management System and insurance companies’ accounting systems. The integration creates a transparent trail for every rupee paid as a claim.

Penalties for Delays

The government now enforces strict penalties for delayed payments. If an insurance company fails to pay claims on time, the National Crop Insurance Portal automatically calculates and charges a 12 percent penalty from Kharif 2024 onwards. State governments also face the same 12 percent penalty if they delay their share of premium subsidies.

These penalties protect farmers from bureaucratic delays. The automatic calculation removes any scope for negotiation or exceptions.

Protecting Farmers from State Delays

Previously, if a state government delayed its premium subsidy payment, farmers had to wait for their entire claim. The government has now delinked the central government’s share from the state’s share. This means farmers receive their proportionate claims from the central government even if the state delays its payment. This reform ensures farmers don’t suffer because of administrative issues beyond their control.

The government has also introduced tranche-based payments starting from 2025-26. This allows farmers to receive partial payments while the full assessment continues, providing immediate relief.

Using Technology for Accurate Assessment

Technology helps assess crop damage more objectively. Field workers now capture yield data through the CCE-Agri App and upload it directly to the portal. Insurance companies can witness crop cutting experiments remotely, ensuring transparency in the assessment process.

The system integrates state land records with the insurance portal, making verification faster. New technologies like YES-TECH (Yield Estimation System Based on Technology) use advanced methods to estimate crop yields. WINDS (Weather Information Network and Data System) provides accurate weather data for assessing weather-related crop losses.

These technological tools reduce human errors and disputes. Farmers get fairer assessments based on objective data rather than subjective opinions.

Spreading Awareness in Remote Areas

Many farmers in remote regions don’t know about crop insurance or how to enroll. The government supports awareness campaigns conducted by state governments, insurance companies, banks, and Common Service Centres. These campaigns explain the scheme’s benefits in local languages.

Since Kharif 2021, the ministry organizes ‘Crop Insurance Week’ or ‘Fasal Bima Saptah’ every season. During this week, officials conduct intensive awareness drives across the country. They also organize ‘Fasal Bima Pathshalas’ at village and gram panchayat levels. These are training sessions where farmers learn about enrollment procedures, premium rates, claim processes, and their rights under the scheme.

Bringing Policies to Farmers’ Doorsteps

Understanding that many farmers struggle with paperwork, the government launched ‘Meri Policy Mere Haath’ (My Policy in My Hands). Through this mega drive, officials distribute hard copies of insurance policy receipts directly to farmers at special camps in villages and gram panchayats.

This physical documentation gives farmers proof of enrollment. Many rural farmers prefer having paper documents they can hold and show to their families. The doorstep distribution also creates an opportunity for officials to explain policy details face-to-face.

Building a Better Future

These reforms show the government’s commitment to making crop insurance work for farmers in the most remote corners of India. Digital portals, automatic penalties, technology-driven assessments, and grassroots awareness campaigns work together to overcome the challenges of distance and connectivity.

For farmers in districts like Karbi Anglong and Dima Hasao, these improvements mean better access to financial protection against crop losses. As the system continues to evolve, more remote area farmers can secure their livelihoods against the uncertainties of weather and nature.