PMFBY Operational Guidelines Explained: Why Crop Insurance Applications Get Rejected and How Farmers Can Appeal
18 December 2025, New Delhi: The Government of India has reiterated the strict operational framework governing the Pradhan Mantri Fasal Bima Yojana (PMFBY), underlining that all crop insurance applications undergo mandatory quality checks before approval. The clarification was provided by the Minister of State for Agriculture and Farmers Welfare, Shri Ramnath Thakur, in a written reply in the Lok Sabha, highlighting how compliance, validation timelines, and grievance redressal mechanisms function under the scheme.
Under the National Crop Insurance Portal (NCIP), every farmer’s application is verified against key eligibility conditions laid down in the operational guidelines of PMFBY. These include proof of insurable interest in the crop, ownership of land or valid documentation as a tenant or sharecropper, accuracy of insured land area vis-à-vis the actual land parcel, alignment between the insured crop and the crop actually sown, and matching of the farmer’s name with Aadhaar records. Any application found lacking correct details, complete documentation, or meeting these basic prerequisites is liable to be rejected by the concerned insurance company.
As per the guidelines, insurance companies are allowed a maximum of 60 days from the cut-off date of premium debit or farmer enrolment to complete validation and take a decision on applications. Typically, the cut-off date is 31 July for the Kharif season and 31 December for the Rabi season. Applications that are incomplete due to missing documents are not immediately rejected; instead, they are returned to the enrolment channel—such as Common Service Centres (CSCs), banks, or insurance intermediaries—for rectification. If farmers submit the required documents within the stipulated period, the applications may be approved; otherwise, they are rejected.
For farmers who disagree with the rejection of their PMFBY applications, the scheme provides multiple channels for grievance redressal. Complaints can be lodged through the KrishiRakshak Portal and Helpline, or farmers may approach agriculture officers at the taluk, tehsil, or district level. Additionally, rejected cases can be reviewed by the District Level Grievance Redressal Committee (DGRC), provided the farmer submits the necessary supporting documents for reconsideration.
The government has also clarified that while the PMFBY operational guidelines provide for delayed claim payments in cases where claim settlement timelines are exceeded, there is no provision to impose penalties solely for rejection of applications. Rejections must be reconciled and reviewed by the respective district and state governments, and only those applications approved for rejection by the state government through the NCIP can be formally rejected by insurance companies.
To ensure oversight and accountability, PMFBY mandates the formation of District Level Monitoring Committees, chaired by District Magistrates, and State Level Monitoring Committees, chaired by the Principal Secretary of the Agriculture Department. These committees monitor overall implementation of the scheme. At the first level, farmer grievances are addressed through the KrishiRakshak Portal & Helpline (KRPH), accessible via the toll-free number 14447. The service operates 24×7 throughout the year, supported by more than 500 trained executives across 10 locations nationwide, handling complaints through both voice calls and the web portal.
Beyond this, an appellate grievance redressal structure is also in place through the District Grievance Redressal Committee (DGRC) and the State Grievance Redressal Committee (SGRC), ensuring that farmers have multiple avenues to seek justice under the crop insurance scheme.
The government’s response in Parliament underscores that while PMFBY remains a critical safety net for farmers against crop losses, accuracy in enrolment, timely documentation, and awareness of grievance mechanisms are essential for ensuring that genuine claims and applications are not rejected.
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