Shivraj Singh Chouhan Highlights Enhancements and Challenges in PM Fasal Bima Yojana

Under PMFBY, the number of applications has surged from 3.51 crore to 8.69 crore, with the gross insured amount increasing to over Rs. 2.71 lakh crore.

In a recent Lok Sabha session, Union Minister for Agriculture & Farmers' Welfare and Rural Development, Shri Shivraj Singh Chouhan, addressed the issues and improvements related to the Pradhan Mantri Fasal Bima Yojana (PMFBY). Chouhan pointed out the deficiencies in previous crop insurance schemes, including insufficient claims, lower insured amounts, and delays in claim settlements. He praised the current PMFBY for addressing these issues and providing comprehensive coverage for crop damage due to natural calamities.

Under PMFBY, the number of applications has surged from 3.51 crore to 8.69 crore, with the gross insured amount increasing to over Rs. 2.71 lakh crore. Farmers have paid Rs. 32,404 crore in premiums and received claims totaling Rs. 1.64 lakh crore.

The Minister highlighted the transition from compulsory insurance for loanee farmers to a voluntary scheme, which has expanded coverage from 5 lakh 1 thousand hectares to 5 lakh 98 thousand hectares by 2023, benefiting 3 crore 57 lakh farmers. The PMFBY now operates under three models chosen by state governments, with private and public insurance companies implementing the scheme at competitive rates.

Chouhan addressed concerns about high premiums in Bihar, explaining that the state has its own crop insurance scheme and has not implemented PMFBY. He also noted the improvement in the scheme's operational units, shifting from blocks to Gram Panchayats to ensure better compensation for localized losses. Mandatory measures, including at least four crop-cutting experiments per Gram Panchayat and remote sensing for assessing crop loss, have been introduced.

To address delays in claim payments, the central government has implemented a provision for a 12% penalty on insurance companies that delay payments, with the penalty directly benefiting farmers. The central government has also de-linked itself from state share payments to avoid delays, ensuring prompt release of its share.

Chouhan acknowledged that delays often result from late premium releases by state governments, disputes between insurers and state authorities, and incorrect farmer data. He urged state governments to expedite premium releases and reiterated the commitment to direct payments to farmers' accounts, aiming to streamline the claims process.

While Chouhan did not see the need for a committee on the scheme at this time, he welcomed suggestions from members to further enhance the PMFBY.