Government Pushes Aquaculture Insurance with 40% Premium Incentive
- IBEF
- September 29, 2026
The Government of India is promoting aquaculture insurance under the Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY) to help farmers manage financial risks arising from disease outbreaks, floods, cyclones and other natural calamities. Aquaculture accounts for around 74% of India's total fish production, while overall fish production increased from 9.6 million tonnes in 2013-14 to 19.8 million tonnes in 2024-25. Under the insurance initiative, eligible aquaculture farmers can receive a one-time incentive of up to 40% of the insurance premium for one crop cycle, with the benefit transferred through Direct Benefit Transfer using the National Fisheries Digital Platform (NFDP). For pond-based aquaculture, the incentive is capped at Rs. 25,000 (US$ 263.24) per hectare, subject to a maximum of Rs. 1 lakh (US$ 1,053) for up to four hectares. Advanced systems such as cage culture, Recirculatory Aquaculture Systems (RAS), biofloc and raceways are also covered, with an incentive of 40% of the premium subject to specified limits.
The scheme also provides an additional incentive of 10% of the incentive payable to general-category beneficiaries for Scheduled Caste, Scheduled Tribe and women beneficiaries. Claim settlement is targeted within 30 days for shrimp culture and 45 days for other aquaculture activities, subject to assessment and policy conditions. Four insurers are currently operational under the initiative: Oriental Insurance Company Limited (OICL), Agriculture Insurance Company of India Limited (AICL), National Insurance Company Limited (NICL) and United India Insurance Company Limited (UIIC). The One-Time Incentive component has received 316 applications covering 730.61 hectares, of which 127 applications covering 321.74 hectares have been approved and Rs. 40.03 lakh (US$ 42,150) disbursed. The initiative aims to strengthen financial resilience, encourage continued investment and make insurance an integral part of aquaculture risk management.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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