Revival of Pradhan Mantri Fasal Bima Yojana (PMFBY)

Overview

Pradhan Mantri Fasal Bima Yojana (PMFBY) was launched in 2016 to provide financial support to farmers in case of crop loss due to natural calamities.

Key Objectives

To ensure financial stability for farmers, especially in times of crop failure, and provide them with protection against yield losses caused by natural disasters.

Coverage

PMFBY is the largest crop insurance scheme globally, with a record number of farmers enrolled in the 2023-24 cycle.

Premium Structure

• Kharif: 2% of the premium.
• Rabi: 1.5% of the premium.
• Commercial/Horticultural: 5% of the premium.
• Some states provide complete waivers of premiums.

Claim Settlement

Out of the total claims of Rs. 1,67,475 crore, Rs. 1,63,519 crore (98%) has been paid to the beneficiaries.

However, delays in the settlement process have occurred due to state-related issues such as premium subsidy, yield data discrepancies, bank account details, and system errors.

Government Interventions

• Advance release of central premium subsidy to states.
• Imposition of penal interest for delayed claims settlement.
• Regular monitoring through video conferencing, meetings, and National Review Conferences.
• Implementation of the Digiclaim Module for efficient claim processing.