The Pradhan Mantri Fasal Bima Yojana (PMFBY), initiated in 2016, has emerged as a significant support system for Indian farmers, aiming to mitigate the financial risks associated with crop loss or damage due to unforeseen events. As we reflect on its eight-year journey, the scheme's impact and evolution become increasingly evident. Since its inception, PMFBY has witnessed a substantial increase of farmer applications, with a staggering 56.80 crore enrollments recorded to date. Notably, over 23.22 crore farmer applicants have received claims, amounting to an impressive Rs. 1,55,977 crore.
Interestingly, farmers' contribution, totaling Rs. 31,139 crore as their share of the premium, has resulted in a noteworthy return, with approximately Rs. 500 received as claims for every Rs. 100 paid.
PMFBY Scheme Dynamics and Growth Trends
PMFBY operates as a demand-driven and voluntary scheme, providing flexibility to both states and farmers. Over the years, there has been a remarkable surge in farmer applications, with growth rates of 33.4% and 41% observed in 2021-22 and 2022-23, respectively. Moreover, the ongoing year, 2023-24, has witnessed a commendable 27% increase in farmer enrollments. A notable trend is the significant participation of non-loanee farmers, constituting 42% of total insured farmers in FY 2023-24.
Key Objectives & Achievements
As the third-largest insurance scheme globally in terms of premium, PMFBY has been instrumental in providing crucial financial support to stabilize farmers' incomes, particularly during natural calamities. The scheme operates as a Central Sector Scheme, ensuring uniformity in implementation across states. Regular reviews and stakeholder consultations have facilitated continuous improvements, including voluntary participation, enhanced technology integration, and revised financial sharing patterns.
Several key enhancements have been introduced to augment PMFBY's effectiveness and reach. Noteworthy measures include extending the tenure for insurance company selection to three years, introducing alternative risk models, and integrating advanced technologies such as the National Crop Insurance Portal (NCIP) and the Digiclaim module. These initiatives aim to streamline processes, improve transparency, and expedite claims settlement.
Efforts to Increase Coverage
Government efforts to expand PMFBY coverage have yielded promising results, with a growing number of farmers voluntarily subscribing to the scheme. Strategic measures, such as extended tenure for insurance company selection, introduction of alternative risk models, and intensified Information, Education, and Communication (IEC) activities, have played a pivotal role in enhancing coverage and adoption rates.
Recognizing the importance of adaptability and responsiveness, the Government has periodically revised PMFBY's Operational Guidelines to ensure transparency, accountability, and timely benefits for farmers. These revisions aim to align the scheme more closely with farmers' needs while optimizing its operational efficiency.
