The Finance Minister Arun Jaitley today proposed to increase the budget allocation for the crop insurance scheme--Pradhan Mantri Fasal Bima Yojana - by 44 percent year-on-year to Rs 13,000 crore for 2018-19. For the current financial year 2017-18, the government had allocated Rs 9,000 crore in its budgeted estimate for the scheme. However, in the revised estimates, the amount has been increased to Rs 10,698 crore. The crop insurance scheme aims to support sustainable production in agriculture by providing financial support to farmers suffering crop damage or loss arising out of unforeseen events. The scheme was launched on April 1, 2016 to ensure the flow of credit to the agriculture sector, which will in -turn contribute to food security, crop diversification. The Fasal Bima Yojana a major initiative towards farmers, for them to feel secure against natural calamities at the time of sowing. The coverage of this scheme was increased from 30 percent of cropped area in 2016-17 to 40 percent in 2017-18 and 50 percent in 2018-19 to 98 million ha gross crop area. The scheme was launched after rolling back previous schemes such as National Agriculture Insurance Scheme, Weather-based Crop Insurance scheme, and Modified National Agricultural Insurance Scheme. Agriculture ministry has migrated from claim-based insurance schemes to an upfront subsidy for a premium- based system. The part liability of claims of previous years (prominently kharif 2015 and rabi 2015-16 have also to be paid along with the upfront premium subsidy under the scheme for kharif and rabi 2017-18. Source - http://www.moneycontrol.com