DMPQ-Discuss the need for revamping of pradhanmantri fasal bima yojna (PMFBY).

. PMFBY aims to support production in agriculture by providing support to ensure inclusive risk cover for crops of farmers against all non-preventable natural risks from pre-sowing to the post-harvest stage. The scheme has completed four years and has been implemented in 27 states and UTs. The sum insured for each crop roughly corresponds to the cost incurred and gives farmers adequate financial protection. The sum insured has almost doubled under this scheme from Rs 22,000 per hectare to Rs 39,000 per hectare.

The combined claim ratio in the first three years of the scheme implementation is 88.3%. This means that for every Rs 100 received as total premium, Rs 88.3 have been paid as claims. Incidentally, the administrative charge and reinsurance cost is about 10-12% since this scheme is heavily reinsurance dependent. For kharif 2019, the claims to the premium ratio for data available till now stands at 80.2%. This is expected to increase further once claims for few states are fully reported.

PMFBY is a multi-stakeholder scheme which is evolving every day and has been reviewed regularly. After a detailed consultation with all stakeholders, the scheme was revamped in February, addressing most of the challenges impacting smooth implementation as well as acceding to the long-standing demand of the farmers to make the scheme voluntary. The revamped scheme envisages leveraging technology in a comprehensive manner to address the issues impacting timely assessment and payment of claims.

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