Based on the experience of past crop insurance schemes and with a view to include more risks under crop insurance and making it more affordable to the farmers etc., Pradhan Mantri Fasal Bima Yojana (PMFBY) has been introduced for implementation from Kharif 2016 season. The scheme also aims to cover the risk of crop yield losses of insured farmers against all non-preventable natural risks from pre-sowing to post-harvest and to provide adequate claim amount and timely settlement of claims. As the scheme is voluntary for the States/Union Territories (UTs), only 27 States/UTs have participated in the scheme in one or more seasons. Further, the scheme was compulsory for loanee farmers obtaining operational agricultural/Kisan Credit Card loans for crops/areas notified by the concerned State Governments and is optional for other farmers. However, Government has recently revamped the PMFBY and made the scheme optional for all farmers for its implementation from Kharif 2020.
Due to the improved features of the scheme, coverage under the scheme has been increased to 30% of Gross Cropped area in the country from 23% in erstwhile crop insurance schemes in 2015-16. The coverage of non-loanee farmers, for whom the coverage is voluntary, has increased from 5% under erstwhile schemes in 2015-16 to 42% during Kharif 2019, which shows the acceptability and progress of the scheme on voluntary basis.