Lok Sabha Question No. 2854 (UNSTARRED), answered on 2026-03-10
Subject: Premium paid under New Insurance Scheme
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Bhausaheb Rajaram Wakchaure

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA

## UNSTARRED QUESTION NO. 2854

TO BE ANSWERED ON THE 10 TH   MARCH, 2026

## PREMIUM PAID UNDER NEW INSURANCE SCHEME

2854. SHRI BHAUSAHEB RAJARAM WAKCHAURE:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ͪष एवं ͩकसान कãयाण be pleased to state:

- मंğी (a) the details of the total premium paid by the farmers, the Union Government and the State Governments to the insurance companies since the inception of the new agriculture insurance policy, State-wise; (b) the number of farmers paid compensation by the insurance companies during the said period including the details of the amount thereof; (c) the amount of additional premium required to be paid by the farmers under the new agriculture insurance policy and if so, the details thereof; (d) the names of the high-risk States identified under the policy; and (e) the details of the increase in the premium amount across the said high-risk location?

## ANSWER

THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE कृ ͪष एवं ͩकसान कãयाण राÏय मंğी (SHRI BHAGIRATH CHAUDHARY)

(a)  to  (c):  The  actuarial/bidded/tendered  premium  rates  are  charged  by  implementing agencies under Pradhan Mantri Fasal Bima Yojana (PMFBY).  However, extremely low premium rate across the country for the season is charged from the famers, which is maximum 2% of sum insured for Kharif crops, maximum 1.5% of sum insured for Rabi crops and maximum 5% of sum insured for commercial/horticultural crops.    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.    No additional premium over the premium rates stated above   is required to be paid by the farmers.

O.I.H.

Further, Operational guidelines of the scheme further provide for 3 Alternate Risk Transfer models other than standard PMFBY, namely cup and cap model (80:110), cup and cap model (60:130) and profit and loss sharing model, under which in case of claims below certain threshold, portion of the premium paid by the Government as subsidy will go back to the State treasury.  States have been given the flexibility to choose  the main scheme any one of these models.

State-wise  details  of  number  of  farmer  applications  enrolled,  premium  paid  by farmers, claims paid and number of farmer benefitted with claims under PMFBY are given in Annexure .

(d) & (e):  PMFBY provides for comprehensive risk insurance against crop damage from pre-sowing  to  post-harvest  for  food  crops  (cereals,  millets  and  pulses),  oilseeds  and annual commercial horticultural crops notified by the concerned State Government.    No classifications  as  low-risk  or  high-risk  States  has  been  made  under  the  scheme. However,  in  order  to  diversify  and  spread  the  risk  and  cover  high  risk  and  low  risk districts/areas within a State without any prejudice, the  State  Governments/UT Administrations are required to group the districts/ areas in such a way that each group contains a mix of districts/ area with different risk profiles. Prior to inviting the bid, the State/UTs Government, especially the large States, have to divide the State into multiple clusters  of  districts  depending  on  the  volume  of  risk  associated  in  the  crops  and district/areas proposed to be notified under the Scheme. The purpose of clustering is to divide the States into different groups of districts, so that expected sum insured (ESI) becomes relatively low and risk is shared and diversified.

Due  to  the  clustering  of  districts,  risk  profile  of  the  cluster  is  normalized  which  is helping in lower bidded premium by the insurance companies under the scheme.

## Annexure

| PMFBY & RWBCIS: State-wise All India cumulative Coverage & Claims from 2016-17 to 2024-25   | PMFBY & RWBCIS: State-wise All India cumulative Coverage & Claims from 2016-17 to 2024-25   | PMFBY & RWBCIS: State-wise All India cumulative Coverage & Claims from 2016-17 to 2024-25   | PMFBY & RWBCIS: State-wise All India cumulative Coverage & Claims from 2016-17 to 2024-25   | PMFBY & RWBCIS: State-wise All India cumulative Coverage & Claims from 2016-17 to 2024-25   |
|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|
| State/UT Name                                                                               | Applications Enrolled                                                                       | (as on 31.12.2025) Farmers Share of Premium                                                 | Paid Claims                                                                                 | Benefitted Application                                                                      |
| State/UT Name                                                                               | (In Nos.)                                                                                   | (Rs. In Crore)                                                                              | (Rs. In Crore)                                                                              | (In Nos.)                                                                                   |
| A & N Islands                                                                               | 2,920                                                                                       | 0.05                                                                                        | 0.28                                                                                        | 668                                                                                         |
| Andhra Pradesh                                                                              | 43,721,809                                                                                  | 795.15                                                                                      | 5,580.50                                                                                    | 6,027,897                                                                                   |
| Assam                                                                                       | 6,292,239                                                                                   | 35.51                                                                                       | 736.64                                                                                      | 1,092,550                                                                                   |
| Bihar                                                                                       | 5,231,142                                                                                   | 402.54                                                                                      | 811.06                                                                                      | 470,922                                                                                     |
| Chhattisgarh                                                                                | 43,544,255                                                                                  | 1,627.25                                                                                    | 7,655.14                                                                                    | 11,193,836                                                                                  |
| Goa                                                                                         | 3,891                                                                                       | 0.19                                                                                        | 0.15                                                                                        | 728                                                                                         |
| Gujarat                                                                                     | 8,394,495                                                                                   | 1,499.42                                                                                    | 5,751.25                                                                                    | 2,936,454                                                                                   |
| Haryana                                                                                     | 38,885,877                                                                                  | 2,351.20                                                                                    | 9,015.15                                                                                    | 8,279,192                                                                                   |
| Himachal Pradesh                                                                            | 2,669,243                                                                                   | 274.50                                                                                      | 609.41                                                                                      | 1,144,391                                                                                   |
| Jammu & Kashmir                                                                             | 961,267                                                                                     | 67.91                                                                                       | 157.25                                                                                      | 266,250                                                                                     |
| Jharkhand                                                                                   | 7,162,312                                                                                   | 75.42                                                                                       | 857.29                                                                                      | 866,732                                                                                     |
| Karnataka                                                                                   | 22,689,525                                                                                  | 2,584.04                                                                                    | 18,654.53                                                                                   | 13,173,981                                                                                  |
| Kerala                                                                                      | 963,528                                                                                     | 76.17                                                                                       | 743.48                                                                                      | 580,672                                                                                     |
| Madhya Pradesh                                                                              | 101,937,385                                                                                 | 6,819.97                                                                                    | 31,737.14                                                                                   | 30,477,707                                                                                  |
| Maharashtra                                                                                 | 132,287,963                                                                                 | 5,609.93                                                                                    | 45,449.17                                                                                   | 62,405,476                                                                                  |
| Manipur                                                                                     | 38,748                                                                                      | 3.75                                                                                        | 10.51                                                                                       | 27,757                                                                                      |
| Meghalaya                                                                                   | 91,819                                                                                      | 0.84                                                                                        | 24.52                                                                                       | 34,197                                                                                      |
| Odisha                                                                                      | 65,485,335                                                                                  | 1,154.56                                                                                    | 7,183.89                                                                                    | 11,332,214                                                                                  |
| Puducherry                                                                                  | 197,676                                                                                     | 1.44                                                                                        | 21.20                                                                                       | 48,608                                                                                      |
| Rajasthan                                                                                   | 194,214,997                                                                                 | 6,827.41                                                                                    | 31,554.48                                                                                   | 50,249,464                                                                                  |
| Sikkim                                                                                      | 13,589                                                                                      | 0.46                                                                                        | 0.18                                                                                        | 330                                                                                         |
| Tamil Nadu                                                                                  | 38,175,078                                                                                  | 1,396.90                                                                                    | 15,575.48                                                                                   | 18,160,066                                                                                  |
| Telangana                                                                                   | 3,904,037                                                                                   | 696.38                                                                                      | 1,906.38                                                                                    | 1,221,538                                                                                   |
| Tripura                                                                                     | 1,400,683                                                                                   | 3.78                                                                                        | 12.29                                                                                       | 133,265                                                                                     |
| Uttar Pradesh                                                                               | 52,945,889                                                                                  | 3,100.02                                                                                    | 5,805.18                                                                                    | 9,161,593                                                                                   |
| Uttarakhand                                                                                 | 2,000,181                                                                                   | 344.79                                                                                      | 1,361.97                                                                                    | 1,067,212                                                                                   |
| West Bengal                                                                                 | 13,805,173                                                                                  | 305.51                                                                                      | 1,262.78                                                                                    | 1,914,960                                                                                   |
| Total                                                                                       | 787,021,056                                                                                 | 36,055.07                                                                                   | 192,477.31                                                                                  | 232,268,660                                                                                 |

******