New Delhi: Since its launch in 2016, the Pradhan Mantri Fasal Bima Yojana (PMFBY) has insured 78.41 crore farmer applications up to June 30, 2025. During this period, around 22.67 crore farmers have received compensation amounting to Rs 1.83 lakh crore, highlighting the scheme’s wide reach and impact in supporting farmers against crop loss, informed Ramnath Thakur, Minister of State for Agriculture and Farmers Welfare in a written reply to Rajya Sabha on August 1.
Pradhan Mantri Fasal Bima Yojana on February 18, 2025 , completed nine years of its launch. Launched in 2016 by Prime Minister Narendra Modi, the scheme provides a comprehensive shield against crop losses caused by unforeseen natural hazards. This protection not only stabilises farmers’ income but also encourages them to adopt new practices.
Crop insurance is an important risk mitigation measure to protect farmers from natural calamities. Its purpose is to provide financial assistance to farmers suffering from crop loss/damage due to natural calamities such as hailstorm , drought , flood , cyclone , heavy and unseasonal rains , disease and pest attacks etc.
MoS further apprised the house about the steps undertaken by the government to strengthen implementation of this scheme, according to Ministry of Agriculture & Farmers Welfare. Among the various steps, development of National Crop Insurance Portal (NCIP) as a single source of data ensuring subsidy payment, co-ordination, transparency, dissemination of information and delivery of services including direct online enrolment of farmers, uploading/obtaining individual insured famer’s details for better monitoring and to ensure transfer of claim amount electronically to the individual farmer’s Bank Account.
In order to rigorously monitor claim disbursal process, a dedicated module namely ‘Digiclaim Module’ has been operationalized for payment of claims from Kharif 2022 onwards. It involves integration of National Crop Insurance Portal (NCIP) with Public Finance Management System (PFMS) and accounting system of Insurance Companies.
Delinking of Central Government share of premium subsidy from that of State Governments has been implemented so that farmers can get proportionate claims relating to the Central Government share. Opening of ESCROW Account by the State Government concerned for deposit of their premium share in advance as per provisions of the scheme has been made mandatory w.e.f. Kharif 2025 season.
Also, towards leveraging technology in implementation of the scheme, various steps like capturing of yield data/Crop Cutting Experiments (CCEs) data through CCE-Agri App & uploading it on the NCIP, allowing insurance companies to witness the conduct of CCEs, integration of State land records with NCIP etc. have already been taken to improve timely settlement of the claims to farmers.
Provision of 12 per cent penalty on delay in payment of claims by insurance company is auto calculated on National Crop Insurance Portal (NCIP). MoS said that both Public Sector and Private Insurance Companies have been involved to increase the coverage of farmers especially non-loanee farmers and to bring more competition in crop insurance sector so as to provide the best services to farmers at competitive rates.
Due to increased competition, actuarial/bidded premium rates have also decreased. As compared to erstwhile crop insurance schemes, coverage of farmer applications has increased from 371 lakhs in 2014-15 to 1510 lakhs in 2024-25. He added that the number of non-loanee farmer applications has also increased from 20 lakhs in 2014-15 to 522 lakhs in 2024-25.
