Claims to premium ratio under Pradhan Mantri Fasal Bima Yojana (PMFBY) and other crop insurance schemes have dropped to around 50 per cent in 2021-22 against about 61 per cent in 2020-21. However, the claims ratio in Uttar Pradesh, Odisha, Maharashtra, Haryana, and Chhattisgarh among major States is higher than national average in last fiscal.
According to data compiled by the Union Agriculture Ministry as on December 31, against ₹30,264 crore gross premium collected, the reported claims stand at ₹15,223 crore for 2021-22 kharif and rabi seasons. However, claims ratio is 136 per cent (claims ₹54.6 crore) in Jammu and Kashmir and 132 per cent (₹1,676.6 crore) in Haryana.
Claims under crop insurance (Rs in cr)
| Gross Premium | Claims reported | Claims to premium ratio | |
|---|---|---|---|
| 2016-17 | ₹21,698 | ₹16,808 | 77.5% |
| 2017-18 | ₹24,601 | ₹22,158 | 90.1% |
| 2018-19 | ₹29,079 | ₹29,341 | 100.9% |
| 2019-20 | ₹32,143 | ₹27,394 | 85.2% |
| 2020-21 | ₹31,675 | ₹19,197 | 60.6% |
| 2021-22* | ₹30,264 | ₹15,142 | 50.3% |
*As of December 31, 2022
Madhya Pradesh, where the Agriculture Insurance Company had paid ₹7,494.2 crore claims against premium of ₹7,064.4 crore in 2020-21, has reported a total ₹1 lakh claim out of ₹6,754 crore premium in 2021-22.
Claims ratio is 98 per cent (claim ₹1,424 crore) in Chhattisgarh, 82 per cent (₹1,040.2 crore) in Odisha, 74 per cent (₹4,336 crore) in Maharashtra, 63 per cent (₹956 crore) in Uttar Pradesh, and 56 per cent (₹3,512 crore) in Rajasthan.
The implication of lower claim ratio is seen to help bring back interest of private insurers in the crop insurance business.
Also read:India among top 3 countries in crop insurance claim ratio
“Even though it is criticised, the PMFBY scheme shows that what farmers have paid as their share of premium, they have received more than 4-times higher claims even last year when the national average is 50 per cent,” said an official. Farmers claim amount was even higher in previous years, he added.
Like happened in last year, most of the claims are paid and there was endless wait for farmers, the official said. As much as ₹14,717 crore have been paid so far, which is nearly 97 per cent of total reported claims amount.
Out of ₹506 crore of pan-India outstanding, the insurer in Rajasthan has to clear ₹155 crore (31 per cent).
The Centre has been trying to woo back those states who left the PMFBY scheme citing financial burden without any political benefit. Already Andhra Pradesh has returned to implement it in Kharif 2022, while Telangana is expected to roll out it in Kharif 2023. Other States that are yet to respond to Centre’s request to return to crop insurance scheme include Gujarat, Bihar, Jharkhand, and West Bengal.
Also read:‘Reframe crop insurance contract to rope in more farmers for PMFBY’