A total of 56.80 crore farmer applications have been enrolled and over 23.22 crore farmer applicants received claims under the Pradhan Mantri Fasal Bima Yojana in the last eight years, the Centre said on Wednesday.

During this period, nearly Rs 31,139 crore was paid by farmers as their share of premium against which claims of over Rs. 1,55,977 crores have been paid to them.

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Thus, for every 100 rupees of premium paid by farmers, they have received about Rs. 500 as claims, the Ministry of Agriculture said amid protests by farmers in support of their demand for a legal guarantee of the Minimum Support Price (MSP) on all crops.

The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a demand-driven scheme and is voluntary for the states as well as farmers. The number of farmer applications has grown 33.4% and 41% year-on-year during 2021-22 and 2022-23, respectively. Further, during the year 2023-24, there is an increase of 27% in terms of farmers enrolled under the scheme so far. Also 42% of total farmers insured under the scheme in FY 2023-24 are non-loanee farmers.

The third largest insurance scheme globally in terms of premium, the PM Fasal Bima Yojana launched in 2016, shields farmers from crop loss or damage arising out of unforeseen events. The PMFBY is successfully fulfilling the objectives of the scheme including providing financial support to stabilize income of farmers especially in natural calamity hit seasons/years/areas. PMFBY is a Central Sector Scheme, therefore, no State/UT-wise allocation and release is made under the scheme.

The scheme is regularly reviewed in consultation with stakeholders especially to address the challenges faced in its operational implementation. The major improvements made include making the scheme voluntary for all farmers, compulsory use of at least 0.5% of the gross premium collected by insurance companies for Information, Education and Communication (IEC) activities; intensive use of technology, change in financial sharing pattern from 50 : 50 between Central and State Government in NER to 90:10; long term i.e. 3 year contract to insurance companies; freedom to States to choose risk cover as per requirements; use of technology etc.

The Department of Agriculture & Family welfare is regularly monitoring the implementation of PMFBY including timely settlement of claims through weekly video conferences of stakeholders, one to one meeting with insurance companies/States etc. Various innovative technologies are also adopted to increase the timeliness for flow of requisite information/data amongst stakeholders.