PM Fasal Bima Yojana, launched in 2016 as India's flagship crop insurance programme, was meant to deliver affordable risk coverage to farmers by capping their premium contribution at 2% for kharif crops and 1.5% for rabi. The government and states pay the balance. An RTI analysis covering 2016 to March 2026 shows insurance companies empanelled under the scheme have collected a total of ₹1,36,480 crore in premiums — of which only ₹46,400 crore (34%) has been paid out as crop loss claims.
PMFBY — A Decade of Data (2016–2026)
- Total premiums collected: ₹1,36,480 crore
- Total claims paid: ₹46,400 crore (34% claim ratio)
- Insurance company profit over 10 years: ~₹90,000 crore
- Average claim settlement time: 14 months (mandate: 2 months)
- Vidarbha, Maharashtra: claim rejection rate 58–62% in drought years
- 10 states have withdrawn from PMFBY citing insurance company non-performance
“I paid the premium for three years. My cotton crop was destroyed by excess rain in 2024. My claim was rejected saying there was no 'notified weather station' in my block. There is a weather station 12 km away — they said it was not close enough.”
— Bhimrao Patil, cotton farmer, Amravati district, Maharashtra
₹1.36L Cr
Premiums collected (10yr)
34%
Claims paid ratio
14 months
Avg settlement time
10
States withdrawn from PMFBY
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Deepak Rao
Ground Correspondent
Deepak is a field journalist covering agriculture, rural economy and civic rights. Based in Bhopal.