PMFBY was revamped in 2020, enabling voluntary participation of the farmers. It also made it convenient for the farmer to report crop loss within 72 hours of the occurrence of any event — through the Crop Insurance App, CSC Centre or the nearest agriculture officer — with claim benefits getting transferred electronically into the bank accounts of the eligible farmer.
Under PMFBY, farmers pay 2 per cent of the sum insured as their share of premium for kharif crops, 1.5 per cent for rabi crops and 5 per cent for horticulture and commercial crops. If the actuarial premium is lower than this rate, the lower of the two would apply. The difference between the actuarial premium rate and the premium paid by farmers is the subsidy shared equally by the Centre and states.
As per reports, insurance companies had made around Rs 40,000 crore between 2016-17 and 2021-22,
Narendra Singh Tomar, Union minister for agriculture, said the companies paid claims worth Rs 119,314 crore to farmers against the total premium collection of Rs 159,132 crore under PMFBY.