Under the Pradhan Mantri Fasal Bima Yojana (PMFBY), government is committed to provide comprehensive insurance coverage against crop loss on account of non-preventable natural risks, said the Ministry of Agriculture and Farmers Welfare in a release on Thursday.

Pradhan Mantri Fasal Bima Yojana (PMFBY) is the third largest crop insurance scheme in the world. It is on the way to become world’s largest crop insurance scheme, with around 5 crore farmer applications being received under the scheme every year.

“The acceptability of the scheme has increased among the farmers in the last 6 years, with share of non-loanee farmers, marginalized farmers and small farmers increasing by 282% since the initiation of the scheme in 2016," the ministry added.

According to official data,  ₹25,186 crore have been paid by farmers as premium in the last six years, while  ₹1,25,662 crore have been paid to farmers against their claims as on 31 October 2022 with central and state governments bearing most of the premium burden under the scheme. 

“The scheme is being implemented on actuarial/bided premium rates. However, farmers including small farmers have to pay maximum 2% for Kharif, 1.5% for Rabi food and oilseed crops and 5% for commercial/horticultural crops respectively. Premium over and above these limits is shared by the central and state governments on 50: 50 basis except in North Eastern Region where it is 90: 10 from Kharif 2020," the ministry said. 

The scheme operates on the insurance principles. Therefore, the extent of area insured, extent of damage occurred, sum insured are the important determinants in arriving at the claim amount.

Digitisation and Technology play a significant role in scaling up the reach and operations of PMFBY with precision agriculture. Recently introduced Weather Information and Network Data Systems (WINDS), Yield Estimation System based on Technology (YES-Tech), Collection of Real Time Observations and Photographs of Crops (CROPIC) are some of the key steps taken under the scheme to bring in more efficiency and transparency.

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