Lok Sabha Question No. 22 (STARRED), answered on 2025-02-04
Subject: Premium Collected under PMBFY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Smt. Delkar Kalaben Mohanbhai, Shri Gyaneshwar Patil

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA STARRED QUESTION NO. 22

TO BE ANSWERED ON THE 4 TH  FEBRUARY, 2025

## PREMIUM COLLECTED UNDER PMBFY

*22. SMT. DELKAR KALABEN MOHANBHAI: SHRI GYANESHWAR PATIL:

Will the Minister of AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी be pleased to state:

(a) the total amount of premium collected by the insurance companies under the Pradhan Mantri  Fasal  Bima  Yojana  (PMFBY) in  the  country  including  Dadra  and  Nagar  Haveli, Madhya Pradesh and Sambhajinagar of Maharshtra;

- (b) the total amount of premium disbursed by the insurance companies under the said Yojana;
- (c) the total number of claims received by the insurance companies thereunder; and
- (d) the total amount of premium retained by the insurance companies after the payment of all the claims of farmers under the Yojana?

## ANSWER

THE MINISTER OF AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी (SHRI SHIVRAJ SINGH CHOUHAN)

- (a) to (d) : A statement is laid on the table of the House.

STATEMENT REFERRED TO PART (a) TO (d) OF LOK SABHA STARRED QUESTION PREMIUM  COLLECTED  UNDER

NO.  22  FOR  4 TH   FEBRUARY,  2025  REGARDING PMFBY. (a) to (d): The  actuarial/bidded  premium  rates  are  charged  under  Pradhan  Mantri Fasal Bima Yojana  (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS) by implementing agencies. Extremely low premium rate across the country for the season is charged from the farmers, which is maximum 2% of sum insured for Kharif crops, maximum 1.5% for Rabi crops and maximum 5% for commercial/horticultural crops. Further, some States like Assam, Jharkhand, Maharashta, Odisha, Meghalaya, Puducherry etc. are paying farmers' share of premium also although partially.  Remaining part of actuarial premium is shared by the Central and State Government on 50:50 basis except North Eastern States (from Kharif 2020) and Himalayan States (from Kharif 2023) where it is shared in the ratio of 90:10. Crop insurance is a major risk mitigation tool for the benefit of farmers. Insurance is all about spreading the risk over the period and over the area.  As per provisions of the PMFBY/RWBCIS, premium from farmers alongwith Central and State Government share in premium subsidy is paid to the concerned insurance company for acceptance of risk and payment of claims as per provisions of scheme.   Insurers save premium in good seasons/years and pay high claims, if any in bad years from the savings made in the good years. Since inception of the scheme in 2016-17 till 2023-24, Rs. 32,475 crore have been collected as premium from farmers and claims of Rs. 1,72,138  crore have been paid to the  farmers  in  the  country  including  that  of  Madhya  Pradesh  and  Sambhajinagar  of Maharashtra. As  far  as  Madhya  Pradesh  is  concerned,  since  inception  of  the  Scheme,  Rs. 6,125.63  crore have been collected as premium from farmers and claims of Rs. 30,198.54 crore have been paid to the farmers. In  Maharashtra,  since  inception  of  the  Scheme,  Rs.5,369.74  crore  have  been collected as premium from farmers and claims of Rs. 38,233.85 crore have been paid to the farmers. Dadra and Nagar Haveli has not opted for the scheme so far.

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