According to Agriculture Minister Narendra Singh Tomar, the Pradhan Mantri Fasal Bima Yojana (PMFBY) has become the world's leading crop insurance scheme in terms of farmer applications enrolled.
The PMFBY, which was launched in 2016, provides comprehensive risk insurance against crop damage due to unpreventable natural risks from pre-sowing to post-harvest for crops/areas notified by the relevant state government. In terms of farmer applications, the scheme has already surpassed the number one crop insurance scheme in the world.
The scheme is the third largest in the world in terms of gross premium "Tomar stated. According to the minister, 832.24 lakh farmers enrolled in the PMFBY during the fiscal year 2021-22.
Farmers paid Rs 3,77,026 crore in premiums, while claims paid were Rs 13,728.63 crore in 2021-22. The insurance companies charge the actuarial/bid premium rate under the scheme's provisions.
However, the farmer is only required to pay a maximum premium of 1.5% and 2% for Rabi and Kharif food and oilseed crops, respectively, and 5% for commercial/horticultural crops.
The remaining actuarial/bidded premium is split 50:50 between the federal and state governments, except in the North Eastern states, where it is split 90:10.
The PMFBY is primarily implemented using a 'Area Approach'. Admissible claims are calculated and paid directly to the insured farmer's account by insurance companies based on season-end yield data provided to the insurance company by the concerned state government and the claim calculation formula outlined in the scheme's Operational Guidelines.
Losses from localised risks such as hailstorm, landslide, inundation, cloud burst, and natural fire, as well as post-harvest losses from cyclones, cyclonic/unseasonal rains, and hailstorms, are calculated on an individual insured farm basis. According to the minister, these claims are evaluated by a joint committee comprised of representatives from the state government and the relevant insurance company.
