Page 24 - Insurance Times July 2022

(Rs. Crore) Government, to be shared equally by the State & Central
Government (except in North Eastern States where the
Plan/Year Insurnce Scheme Expenditure
subsidy sharing pattern between Central and State Govt is
2016-17 Pradhan Mantri Fasal Bima 110.54.63
90:10) to provide full insured amount to the farmers against
Yojana (PMFBY) and
crop loss on account of natural calamities.
Restructured Weather Based
Crop Insurance Scheme
Earlier, there was a provision of capping the premium rate
(RWBCIS)
which resulted in low claims being paid to farmers. This
2017-18 -- do -- 9419.79 capping in earlier schemes has now been removed. In PMFBY
2018-19 -- do -- 11945.38 farmers will get claim against full sum insured without any
reduction. Central Government has rationalized the GoI
2019-20 -- do -- 12638.32
subsidy sharing in the view of high premium in select crops
2020-21 -- do -- 9799.86
and areas and to ensure a detailed analysis of the reasons
As on 31.12.2020 leading to high premium rates. This needs a detailed
examination and necessary course correction by the
Pradhan Mantri Fasal Bima Yojana concerned State Government. Central Subsidy for premium
is capped up to 30% for unirrigated & 25% for irrigated
(PMFBY)
area/crops. Districts with irrigated area more than 50%
After detailed discussions with various stakeholders including (from all sources) will be considered as irrigated districts.
State Governments, representatives of farmer organizations, Further, the sum insured has been equated to Scale of
Government of India had formulated the new Crop Finance/Notional Value of the crop.
Insurance Schemes viz. Pradhan Mantri Fasal Bima Yojana
(PMFBY), which is being implemented in various States/
Under PMFBY, CCEs has increased
Union Territories of the country from Kharif 2016. The
Scheme is being implemented through 18 General Insurance manifold.
Companies including all the 5 Government Sector Every year around 70 lakh CCEs need to be conducted to
Companies. Under PMFBY, a uniform maximum premium of arrive at yield data within a short harvesting window of 15-
only 2% of the sum insured is paid by farmers for all Kharif 20 days is a challenging task. Smart Sampling and Two Step
crops and 1.5% for all Rabi crops. Yield Estimation has been adopted under PMFBY
implementation to rationalize and reduce number of CCEs
In case of annual commercial and horticultural crops, the to be conducted. This will ensure reduction in CCE numbers
maximum premium to be paid by farmers is up to 5%. The without impacting quality of sampling and yield estimation
premium rates to be paid by farmers are very low and the results. Further, new age technology will be used to assess
balance of actuarial premium is being borne by the crop health using remote sensing and satellite indices.

Progress of the scheme implementation
The Scheme has completed 5 years of its implementation. Details of coverage and claims (as on 11.1.2021) are given in
the following table:

PIVIFBY & RWSCIS - All India Business Statistics Since Implementation as on 11.01.2021

24 The Insurance Times, July 2022