Pradhan Mantri Fasal Bima Yojana’s 9-Year Journey: Massive Growth, Technological Innovations, And Challenges Ahead

Insurance Milestone: PMFBY Hits Massive Farmer Reach by 2025

Can you guess how many farmers have benefited from India’s biggest crop insurance scheme? Between its launch in 2016 and June 30, 2025, the Pradhan Mantri Fasal Bima Yojana (PMFBY) has seen a jaw-dropping 78.41 crore farmer applications! Even more impressive—Rs 1.83 lakh crore in claims have already reached the pockets of 22.67 crore farmers. Yes, you read that right. Announced by the Minister of State for Agriculture in Parliament on August 1, this milestone comes as PMFBY celebrates its 9th anniversary. Designed to protect farmers from nature’s surprises—like floods, droughts, and pests—it also gives them the confidence to adopt new techniques. Affordable, scalable, and tech-savvy, PMFBY continues to be a game-changer for India’s agricultural backbone.

Insurance Evolution: Tech Upgrades Make Claims Smarter

To streamline operations, PMFBY uses the National Crop Insurance Portal (NCIP) as a central hub for enrolment, monitoring, and direct claim transfers. Since Kharif 2022, the ‘DigiClaim Module’ has automated claim disbursals by integrating NCIP with PFMS and insurers’ accounting systems. Delinked premium subsidies and mandatory state ESCROW accounts (effective Kharif 2025) further improve transparency. These tech-based reforms aim to ensure quicker resolution, reduce delays, and deliver direct benefits to farmer bank accounts—creating smoother insurance access across India.

Insurance Reform: Expanding Coverage And Competition

• Massive Growth in Coverage
  PMFBY applications grew from 3.71 crore in 2014–15 to 15.10 crore in 2024–25, showing a fourfold increase in farmer participation.
• Non-Loanee Farmer Inclusion
  The number of non-loanee farmers rose dramatically—from just 20 lakh to 5.22 crore, boosting access to insurance beyond just those with bank loans.
• More Insurers, More Choices
  With both public and private insurance companies now onboard, farmers benefit from improved competition, better services, and lower premium rates.
• Farmer Awareness Campaigns
  The scheme requires 1% of gross premiums to be used for awareness drives, ensuring farmers are informed about their rights and coverage.
• Stronger Grievance Redressal
  Introduction of the Krishi Rakshak Portal (KRPH) has enhanced grievance resolution, making the scheme more farmer-centric and transparent

Insurance Challenges: Speed, Transparency, State Defaults

Experts note that some states still default on their premium share, delaying claim payouts. Although claim settlement rates reach 97% nationwide, certain states (e.g. Andhra Pradesh, Rajasthan) lag behind. Crop Cutting Experiments (CCEs) sometimes rely on manual processes, slowing loss assessment. Post-harvest yield issues and data inconsistencies—especially regarding tenant farmers—also pose challenges for accurate claims. Still, recent innovations like YES‑TECH and WINDS are steadily improving data accuracy and settling disputes faster.

(With Inputs From ANI)

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