PMFBY seek increase in enrollment by 27 percent in current year

New Delhi: 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 was launched in 2016, and protects 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 the income of farmers, especially in natural calamity-hit seasons/years/areas. PMBFY is a Central Sector Scheme, therefore, no State/UT-wise allocation and release are made under the scheme.

Read Also : IndusInd Bank Q1 FY25 results, net profit at 2% YoY

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.

 

Read Also : RBI issues guidelines on higher liquidity coverage ratio for retail deposits

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 meetings with insurance companies/States, etc. Various innovative technologies are also adopted to increase the timeliness of the flow of requisite information/data among stakeholders.

Read Also : India assumes the Chair of Asian Disaster Preparedness Centre