The Government has approved the continuation of Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather-Based Crop Insurance Scheme (RWBCIS) till 2025-26.

• The schemes aim to provide financial protection to farmers against crop loss due to unforeseen natural calamities.

About Pradhan Mantri Fasal Bima Yojana (PMFBY)

• The Pradhan Mantri fasal bima yojana (PMFBY) was  launched in 2016  as  an insurance service for farmers for their yields
• Objectives of PMFBY
  • Comprehensive crop insurance to safeguard farmers from financial losses due to natural calamities like rainfall, temperature variations, frost, and humidity.
  • Ensures stability in farmer incomes by covering both pre-sowing and post-harvest crop damage.
  • Total financial outlay: ₹69,515.71 crore for the period 2021-22 to 2025-26.
• Key Features of PMFBY
  • Introduced in Kharif 2016 by the Ministry of Agriculture & Farmers Welfare.
  • Replaced previous schemes: National Agricultural Insurance Scheme (NAIS) and Modified NAIS.
  • Available for all States/UTs, voluntary for both States and farmers.
  • Eligibility
    • All farmers, sharecroppers, and tenant farmers growing notified crops in notified areas are eligible.
    • Covers food crops (cereals, millets, pulses), oilseeds, and commercial/horticultural crops.
• Premium Structure
  • 2% for Kharif crops.
  • 1.5% for Rabi crops.
  • 5% for commercial/horticulture crops.
• No upper limit on government subsidy: even if the balance premium is 90%, the Government will bear it.
• Post-Harvest Loss Coverage
  • Coverage for up to 14 days for crops stored in the “cut and spread” condition.
  • Protects farmers from unexpected post-harvest losses.
• Exclusions: Losses due to war, nuclear risks, and preventable risks are not covered under PMFBY.
• Technological Initiatives under the Scheme:
  • Yield Estimation System using Technology
  • WINDS (Weather Information and Network Data Systems)
  • Fund for Innovation and Technology (FIAT)

About Restructured Weather-Based Crop Insurance Scheme (RWBCIS)

• Introduced in 2016 to protect farmers from financial losses caused by adverse weather conditions.
• Covers various perils like drought, flood, cyclone, and hailstorm.
• Key Features
• • Provides insurance coverage for food crops, oilseeds, commercial, and horticultural crops.
  • Aims to mitigate financial risks caused by weather anomalies.
• Eligibility:  All farmers, sharecroppers, and tenant farmers growing notified crops in notified areas are eligible.

Difference Between PMFBY and RWBCIS

Implementation of PMFBY: Success and Gaps

Successes

• Widespread adoption: 27 States/UTs have implemented PMFBY since inception, with 23 currently participating.
• Transparent selection: States select insurance models and companies through bidding.
• Effective monitoring: Regular video conferences, stakeholder meetings, and national reviews ensure smooth functioning.
• Improved grievance redressal: Stratified mechanism through District and State Level Committees (DGRC & SGRC).

Challenges and Gaps

• Delayed claim settlements due to disputes between State Governments and insurance companies.
• Non-payment/underpayment issues due to incorrect or delayed insurance proposals from banks.
• Delays in fund transfers from State Governments affecting claim disbursement.
• Lack of sufficient personnel from insurance companies, impacting timely assessment and claim processing.

Enhancements in PMFBY for Better Implementation

• Stratified grievance system: District Level (DGRC) and State Level (SGRC) Committees.
• Krishi Rakshak Portal & Helpline (KRPH) introduced for easier grievance lodging.
• Single toll-free number (14447) linked to insurance companies’ databases for quick issue resolution.
• Revised Operational Guidelines to enhance transparency, accountability, and farmer-friendly operations.
• Regular monitoring of insurance companies to ensure timely claim settlements.

This ensures that PMFBY remains an effective and transparent crop insurance scheme, providing financial security to farmers against unforeseen agricultural risks.

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