The Big Shift: Private Insurers Are Entering Aquaculture Insurance
For years, aquaculture insurance in India has been a public-sector-only game. Four government-owned insurers — Oriental Insurance Company (OICL), Agriculture Insurance Company of India (AICL), New India Assurance (NIAL) and United India Insurance (UIIC) — have been the only players offering cover under the national aquaculture farmers’ support scheme, the Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY). That is about to change.
The government has announced that private insurers are being onboarded to strengthen India’s aquaculture insurance ecosystem, according to a Press Information Bureau announcement reported by Reinsurance News Asia on 30 September 2026 and a government factsheet carried by IANS on 28 September 2026. The government’s stated goal is to build a durable, self-sustaining market for aquaculture insurance — one where farmers choose risk protection as routine farm management, not as paperwork.
Why This Matters for Shrimp and Fish Farmers
India produced a record 19.8 million tonnes of fish in 2024-25, making it the world’s second-largest producer, with aquaculture accounting for more than 74% of output — yet only about 17% of the country’s 1.41 million hectares of brackish-water area has been developed. Disease outbreaks, flooding, cyclones, pollution and earthquakes keep wiping out crops, and affordability has been the core barrier to insurance uptake.
More insurers competing under one scheme means wider product choice, better service reach, and — over time — a more dependable claims experience for farmers. The scheme’s own target is to facilitate cover for at least 100,000 hectares of aquaculture farms during the programme period.
What the PM-MKSSY Aquaculture Insurance Incentive Offers
Under Component 1-B of PM-MKSSY — a Central Sector sub-scheme under the Pradhan Mantri Matsya Sampada Yojana (PMMSY), running from FY 2023-24 to FY 2026-27 with an estimated outlay of ₹6,000 crore — eligible farmers get a one-time incentive of up to 40% of the insurance premium for insurance purchased for one crop cycle, paid through Direct Benefit Transfer (DBT) via the National Fisheries Digital Platform (NFDP) (PIB, 2 April 2025).
| Farm type | Incentive | Ceiling | Maximum |
|---|---|---|---|
| Pond/farm aquaculture (up to 4 ha water spread area) | 40% of premium | ₹25,000 / hectare | ₹1,00,000 per farmer |
| Intensive systems: cage culture, RAS, biofloc, raceways (up to 1,800 m³) | 40% of premium | — | ₹1,00,000 per farmer |
| SC/ST and Women beneficiaries | Additional 10% over the general-category incentive | ||
Coverage and Claim Timelines
Coverage is available for shrimp, prawn, freshwater fish and cold-water species, addressing losses from disease, flooding, cyclones, pollution, earthquakes and other specified perils. Two product types exist (PIB, Rajya Sabha reply, 12 March 2025): Basic Insurance for yield losses from non-preventable perils, and Comprehensive Insurance which additionally covers disease.
When an insured peril strikes, the farmer must immediately intimate the insurer, submit documentary evidence as per policy terms, and the insurer appoints a loss assessor to evaluate damages. Claims are targeted for settlement within 30 days for shrimp culture and 45 days for other aquaculture activities, subject to assessment and policy conditions.
Progress So Far
Take-up is still at an early stage, but moving. As reported on 28 September 2026 citing a government factsheet: 316 applications covering 730.61 hectares have been received for the one-time incentive; of these, 127 applications covering 321.74 hectares have been approved and disbursed, with total payments of ₹40.03 lakh.
How to Apply
- Step 1: Register and enrol on the National Fisheries Digital Platform (NFDP) portal — registration is mandatory to access any benefit under PM-MKSSY.
- Step 2: Purchase an aquaculture insurance policy (Basic or Comprehensive) from an empanelled insurer for your crop cycle — private insurers will join the empanelled list as onboarding completes.
- Step 3: Submit your application for the one-time incentive through the NFDP portal’s Aquaculture module; the incentive is paid via DBT.
Fish farmers seeking scheme support should contact their State Fisheries Department or the National Fisheries Development Board (NFDB), Hyderabad, for guidance on NFDP registration and application.
Sources: IANS “How PM-MKSSY is insuring India’s Blue Economy” (28 Sep 2026, citing government factsheet); Reinsurance News Asia (30 Sep 2026, citing Press Information Bureau announcement); IBEF (29 Sep 2026); PIB Release ID 2117744 (2 Apr 2025); PIB Release ID 2110678 — Rajya Sabha reply by MoS (Fisheries) George Kurian (12 Mar 2025). Figures verified against official sources on 24 October 2026. PM-MKSSY implementation period FY 2023-24 to FY 2026-27 — scheme currently active. Onboarding of private insurers was announced and in progress at the time of writing; no specific private insurers have been named yet.