Pradhan Mantri Fasal Bima Yojana: Rs 500 paid as claim for every Rs 100 premium paid in 8 years PMFBY

Pradhan Mantri Fasal Bima Yojana: More than 23.2 crore farmer applicants were paid claims to the tune of Rs 1,55,977 crore against Rs 31,139 crore paid by them as share of premium in the past eight years, the central government said on Wednesday. In other words, around Rs 500 was paid as claims to farmers for every Rs 100 of premium paid under the Union government’s Pradhan Mantri Fasal Bima Yojana, a government-sponsored crop insurance scheme.

The demand-driven PM Kisan crop insurance scheme registered a 27 per cent year-on-year increase in the number of enrolments in the current financial year so far, the Ministry of Agriculture & Farmers Welfare said in a statement.

Out of the total beneficiaries under the scheme, 42 per cent were non-loanee farmers, the ministry said. More than 23.2 crore farmer applicants received claims during the eight-year period since the implementation of the PM crop insurance scheme, it added.

The government has made a series of efforts to enhance the coverage of the scheme over the years, including increase in tenure to three years for selection of insurance company through bidding process introduction of three alternative risk models: profit and loss sharing, cup and cap models 60-130 and 80-110 (if no claim is made then a portion of the premium paid by the state goes into the state treasury) infusion of improved technology increased IEC and related activities to improve the implementation and coverage

The government has periodically revised the operational guidelines of the PM Fasal Bima scheme comprehensively to ensure that the eligible benefits under the scheme reach the farmers timely and transparently, the ministry said.

What is PM Fasal Bima Yojana? Key things to know about crop insurance scheme

Pradhan Mantri Fasal Bima Yojana: What is the PM Fasal Bima scheme all about?

Launched in 2016, the PM Fasal Bima scheme is aimed at shielding the farmer from crop loss or damage arising out of unforeseen events.

Pradhan Mantri Fasal Bima Yojana: How big is the scheme?

It is the third-largest insurance scheme globally in terms of premiums. The number of applicants under the crop insurance scheme has increased exponentially over the years, growing 33.4 per cent and 41 per cent in FY22 and FY23, respectively.

The Department of Agriculture and Family Welfare regularly monitors its implementation including the timely settlement of claims through weekly video conferences of stakeholders, and meetings with insurance companies/states.