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PMFBY provides comprehensive crop insurance against non-preventable natural risks from pre-sowing to post-harvest. One of world's largest crop insurance programmes. ₹1.55 lakh crore claims paid since 2016; 4+ crore farmers insured annually. Voluntary for non-loanee farmers since 2020. Technology: drones, satellites for loss assessment.
Target Beneficiaries: 4 crore+ farmers annually; ₹1.55 lakh crore claims paid since 2016
14600
Funding Ratio (Centre:State): Premium paid by Farmers: 2% (Kharif), 1.5% (Rabi), 5% (Commercial/Horticulture). Balance premium split 50:50 between Center and State (90:10 for NE)
GS Paper: GS3
Syllabus Tags
Launched in February 2016, replacing the National Agricultural Insurance Scheme (NAIS) and Modified NAIS.
Satellite based crop monitoring for yield estimation.
Weather data collection through automated weather stations.
Metric
Rs. 1.55 Lakh Crore
Source: PIB
Metric
4.5 Crore
Source: Ministry of Agriculture
PMFBY was designed to solve the issues of high premiums and low coverage of previous schemes. While it has succeeded in lowering premiums for farmers (1.5-2%), it faces 'Implementation Paralysis' due to delayed premium subsidies by State governments and delayed claim settlements by insurance companies. The 2020 revamp, making it voluntary for all farmers, was a double-edged sword: it gave farmers choice but reduced the risk pool, potentially leading to higher premiums. The shift towards 'Yield-based' to 'Weather-based' technology (CROPIC, YES-TECH) is promising but requires robust rural infrastructure.
Critically evaluate the performance of PMFBY since its 2020 revamp. To what extent has technology helped in overcoming the delays in claim settlements?
Agriculture risk management points: 1. Financial stability for farmers during disasters. 2. Role of Agritech (Satellites, Drones) in damage assessment. 3. Beed Model (80-110 formula) as a way to handle insurance company profits. 4. Direct Benefit Transfer (DBT) of claim amounts.