Hyderabad The revision of operational guidelines for Pradhan Mantri Fasal Bima Yojana (PMFBY) is under process to address some of the challenges being faced in the implementation of the scheme, according to the Insurance Regulatory and Development Authority of India (IRDAI).

“The process is currently underway with the government and an advisory to States and insurance company has already been issued for tender cycle kharif 2023 till rabi 2025-26,’‘ an IRDAI official told businessline, when asked on a recent report on the matter.

PMFBY was launched from kharif 2016 to support production in agriculture by providing an affordable crop insurance product to ensure comprehensive risk cover for crops of farmers against all non-preventable natural risks from pre-sowing to post-harvest stage. It constitutes more than 90 per cent of total crop insurance business in India. The scheme is implemented by  empanelled general insurance companies.


According to the insurance regulator, the current challenges in the implementation of the scheme included delay in claim settlement,  high financial liabilities in the States, stakeholder exit from PMFBY, lack of information access/farmer awareness and unreliable loss & yield assessment.

The concerns for the insurers are inadequate institutional framework and dispute resolution between States and insurance companies and limited technical capabilities with States.

More flexible

The proposed revision of the operational guidelines is more flexible to States to choose Risk Transfer Option to facilitate a State to choose risk transfer option as per their budget and requirement. 

It has been proposed to ensure timely release of premium subsidy and to maintain strict financial discipline, subsidy payment will be streamlined through escrow account jointly administered by the State government and the Centre. Also all the financial transaction (subsidy or claims) shall be routed through the National Crop Insurance Portal (NCIP).

Latest technology to be harnessed. The Crop Cutting Experiments (CCEs) may be conducted through mobile applications specially designed by government. This will increase transparency and also help in fast dissemination of data, according to the regulator. 

To create technical capabilities with States, provision for creation of State-Level Project Management Unit (SPMU) has been advised. Dispute resolution will be made through a separate, conflict-free independent Authority.

According to the latest data of PMFBY, 29 agri crops and 59 horticultural crops are covered under the scheme in 411 districts across 20 States/UTs for the kharif season of 2023. For the ongoing rabi season, 49 agri rain crops and 101 horticultural crops are covered in 411 districts across 17 States/UTs.

The sum assured for the kharif of 2023 was ₹1,33,94,543 lakh while for the Rabi, it was at ₹90,58,657 lakh.