Premium Under PMFBY; Claims Worth Over Rs 1.64 Lakh Crore Cleared
Updated: 24-01-2026 at 3:30 PM
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Pradhan Mantri Fasal Bima Yojana (PMFBY) was launched during the Kharif 2016 season as a comprehensive insurance scheme for farmers aimed at providing financial assistance to them in case of any distressed situations, like crop loss or damage. Agriculture is a crucial sector for all the economies of the world as our survival depends upon it, however, it is also one of the most unpredictable professions as it is dependent upon natural factors, like weather conditions. This also means that it is extremely vulnerable to natural conditions, like natural disasters, unfavourable weather conditions, pests and diseases, etc. and this is exactly where the PMFBY scheme comes as a helping hand for the farmers of India.
The Pradhan Mantri Fasal Bima Yojana has been highly successful, and claims under the govt scheme by farmers have amounted to an enormous Rs 1.64 lakh crore while farmers have paid Rs 32,440 crore as premium under the PMFBY scheme. This significant difference underscores the importance and value of this scheme for securing farmer’s lives across India. It is not just any other govt insurance scheme, but it is one of those insurance schemes that not only saves the product of the agricultural sector but the lives of the farmers as well.
Read the article to learn more about the govt scheme, ranging from its meaning and benefits to probable reasons for delays in claim settlement and the process of filing PMFBY claims settlement, including answers to popular questions, like ‘How much is the PMFBY premium paid by farmers?’.
Overview
The table below summarises some key details about the crop insurance scheme India that one should know before applying.
| Name of the scheme | Pradhan Mantri Fasal Bima Yojana |
|---|---|
| Launched by | Government of India |
| Launched in | 2016 |
| Objective | To provide financial assistance to the farmers in case of any distressed situations |
| Target group | Indian farmers |
| Mode of application | Offline |
Read More: Pradhan Mantri Kisan Samrudhi Kendras- All Government Scheme For Farmers Under One Roof
Understanding Pradhan Mantri Fasal Bima Yojana (PMFBY)
The Indian government launched the Pradhan Mantri Fasal Bima Yojana (PMFBY) which provides comprehensive risk coverage under PMFBY for crops against all non-preventable natural calamities. These risks are spread over pre-sowing, and post-harvest stages and fairly priced premiums are charged on them to benefit our farmers. It is voluntary for states meaning that they can choose whether or not to adopt it based on their needs and preferences.
Farmers involved in agriculture need a lifeline to survive because farming is unpredictable. Under the govt scheme, reports clearly show that there are more claims settled compared to five times the premium paid by farmers which indicates the efficiency of the scheme and how important it is in protecting the agriculture industry.
Benefits of Pradhan Mantri Fasal Bima Yojana for Indian Farmers
There are many PMFBY benefits for farmers. Some of the key benefits that the farmers can enjoy through the scheme are described below in brief for one's reference:
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The PMFBY scheme offers compensation against crop loss due to natural disasters such as floods, droughts, pest attacks etc. This ensures that farmers do not fall into bankruptcy just because one season was bad and because things were not in their control.
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The farmers crop insurance scheme is an extremely affordable insurance plan introduced by the government so that all types of farmers can apply for it. The farmers pay a very small portion of the total premium. i.e. 2% for Kharif crops, 1.5% for Rabi crops, and 5% for commercial and horticultural crops. The rest of the premium amount is contributed by the central and state government authorities.
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The Pradhan Mantri Fasal Bima Yojana offers insurance protection to the farmers all year round and not just for a specific season’s period. From pre-sowing the seeds to the harvesting season, this govt insurance scheme provides a comprehensive risk coverage to the farmers and their crops.
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This govt scheme is specially designed for small and marginal farmers who are in need of such affordable options and whose entire income is dependent upon this unpredictable yet crucial profession.
Read more: Mukhyamantri Kisan Kalyan Yojana- A Financial Net For The Farmers
Reasons for Delay in Insurance Claim Settlement Under PMFBY Scheme
There are many reasons for the delay in insurance claim settlement under PMFBY. Delays are usually experienced because of how states run the scheme as said by Agriculture Minister Shivraj Singh Chouhan. Sometimes bureaucratic inefficiencies or failure to present documents when required slow down this process.
The government has taken steps to address these issues including the introduction of a 12 percent penalty on insurance firms if there is a delay. This will ensure that claims are settled when due hence providing timely relief to farmers. Modern technology like remote sensing should be used when making claims under the steps to file an insurance claim under PMFBY. This reduces human error and quickens the process of settling claims. However, despite these measures, delays can still occur.
State-wise Implementation of Pradhan Mantri Fasal Bima Yojana
Accordingly, territory-wise implementation differs from one another in terms of Pradhan Mantri Fasal Bima Yojana. While some have embraced it early and profited greatly, others have been slow in its progress. The success of this program greatly depends on how cooperative and effective state governments are.
How to File an Insurance Claim Under PMFBY Scheme?
To help farmers make a claim it is important to know the steps to file an insurance claim under PMFBY. The process of filing for crop insurance claims India is laid down below in stepwise manner for one's clarity:
Step 1: Notify the Crop Loss: Farmers must notify their insurer or bank within 72 hours about any crop loss.
Step 2: Damage Assessment: Remote sensing or field surveys by the insurer do damage assessment.
Step 3: Documents Submission: Farmers must do the needful, presenting papers that serve as a confirmation of loss to the insurance company.
Step 4: Settlement of Claims. Upon assessment, processing of claims and transferring payment to the farmer’s account by banks is done.
Role Of The Government And Insurance Companies
The success of this scheme largely depends on the government through its guiding principles and monitoring its course of action. The process will be carried out by insurance firms while payment is made by them after considering the claims made. Both bodies need to work in harmony so as not to delay farmers’ compensation.
What Are The Changes Introduced In The PMFBY Scheme?
To make this program better for Indian farmers, a number of changes in the PMFBY scheme for better farmer benefits have been suggested including; using technology to speed up claim settlement processes, more stringent penalties against delays and enhanced coverage options. These adjustments are meant to reformulate the system so that it suits best farming needs today.
Read More: Organic Growth- Doubling India’s Farmers‘ Income through Sustainable Agriculture
Conclusion
Pradhan Mantri Fasal Bima Yojana (PMFBY) has played an important role in protecting farmers from agro risks. More than 1.64 lakh crore worth of claims settled under this scheme; it provides huge financial support during emergencies to cultivators. However, its successful implementation also depends on efficiency and coordination between state governments and insurance companies.
For farmers interested in benefiting from this program, understanding Pradhan Mantri Fasal Bima Yojana state-wise implementation and How To Claim Insurance Under PMFBY steps for filing an insurance claim under PMFBY are necessary steps which should be taken seriously if one wants their rights respected when something terrible occurs with their crops or animals or any other aspects relating agriculture (farming).
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