Pradhan Mantri Fasal Bima Yojana Provides Comprehensive Crop Insurance to Farmers at Highly Subsidized Premium Rates

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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