**Executive Summary**
The Pradhan Mantri Fasal Bima Yojana (PMFBY) offers crop insurance to farmers at highly subsidized premium rates, with farmer contributions capped at 2% for Kharif, 1.5% for Rabi, and 5% for commercial/horticultural crops. The remaining premium is shared by central and state governments. The scheme also introduces alternative risk transfer models for states. Data on farmer enrollment, premiums, and claims from 2016-17 to 2024-25 is provided.
**Key Points / Main Content**
**Subsidized Premium Rates:**
* Farmers contribute a maximum of 2% of the sum insured for Kharif crops.
* Farmers contribute a maximum of 1.5% of the sum insured for Rabi crops.
* Farmers contribute a maximum of 5% of the sum insured for commercial/horticultural crops.
* No additional premium is to be paid by farmers beyond these rates.
**Premium Sharing:**
* The remaining actuarial premium is shared by the Central and State Governments on a 50:50 basis.
* For North Eastern States (from Kharif 2020) and Himalayan States (from Kharif 2023), the sharing ratio is 90:10 (Central:State).
**Alternative Risk Transfer Models:**
* PMFBY includes three alternative risk transfer models: cup and cap (80:110), cup and cap (60:130), and profit and loss sharing.
* Under these models, a portion of the government subsidy may be returned to the State treasury if claims fall below a certain threshold.
* States have the flexibility to choose one of these models.
**Scheme Coverage and Risk Diversification:**
* PMFBY provides comprehensive risk insurance from pre-sowing to post-harvest for notified food crops, oilseeds, and annual commercial horticultural crops.
* States/UT Administrations are required to group districts with different risk profiles to diversify and spread risk.
* This clustering of districts aims to normalize risk profiles, leading to lower bidded premiums.
**Data Provided:**
* The document includes state-wise details of farmer applications enrolled, premiums paid by farmers, claims paid, and farmers benefited with claims under PMFBY (Annexure).
* Cumulative coverage and claims data from 2016-17 to 2024-25 is presented in a table.
**Impact Analysis**
**Farmers**
* **Impact:** Farmers benefit from highly subsidized crop insurance, reducing their financial burden in case of crop damage. They are protected against risks from pre-sowing to post-harvest.
* **Action Required:** Farmers need to enroll under the scheme to avail the insurance benefits, paying only the subsidized premium.
**State Governments/UT Administrations**
* **Impact:** States share a significant portion of the premium and are responsible for grouping districts to diversify risk. They also have the flexibility to choose alternative risk transfer models.
* **Action Required:** States must group districts into clusters with mixed risk profiles before inviting bids. They are also responsible for their share of the actuarial premium as per the defined ratios.
**Central Government**
* **Impact:** The Central Government contributes a substantial portion of the premium and is implementing the PMFBY scheme.
* **Action Required:** Continue to provide its share of the premium subsidy and oversee the implementation of the scheme.
**Implementing Agencies (Insurance Companies)**
* **Impact:** These agencies are responsible for charging premiums and processing claims. Risk diversification through clustering is expected to lead to lower bidded premiums.
* **Action Required:** To bid for implementing the scheme based on the cluster-based risk profiles and provide insurance coverage and claim settlement services.
Key Entities Referenced
Pradhan Mantri Fasal Bima Yojana (PMFBY): A comprehensive crop insurance scheme for farmers providing subsidized premium rates.
Ministry of Agriculture & Farmers Welfare: The government ministry responsible for the PMFBY scheme.
Alternate Risk Transfer models (cup and cap model, profit and loss sharing model): Alternative operational guidelines for the PMFBY scheme offering different risk management approaches.
Food crops (cereals, millets and pulses), oilseeds and annual commercial horticultural crops: The types of crops covered by the PMFBY scheme.
Shri Bhagirath Chaudhary: Minister of State for Agriculture and Farmers Welfare who provided information on the scheme.
Ministry of Agriculture & Farmers Welfare
Pradhan Mantri Fasal Bima Yojana Provides
Comprehensive Crop Insurance to Farmers at
Highly Subsidized Premium Rates
Posted On: 10 MAR 2026 6:10PM by PIB Delhi
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.
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 farmers benefitted with claims under PMFBY are given in Annexure.
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.
AnnexurePMFBY & RWBCIS: State-wise All India cumulative Coverage & Claims from 2016-17 to 2024-
25
(as on 31.12.2025)
State/UT Name Applications Farmers Share Paid Benefitted
Enrolled of Claims Application
Premium
(In Nos.) (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 2,669,243 274.50 609.41 1,144,391
Pradesh
Jammu & 961,267 67.91 157.25 266,250
Kashmir
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 27,757Meghalaya 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
This information was given by Minister of State for Agriculture and Farmers Welfare, Shri Bhagirath
Chaudhary in a written reply in Lok Sabha today.
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RC/PU/DK
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