Why in News? 

On February 18, 2025, the Pradhan Mantri Fasal Bima Yojana completed nine years, celebrating almost a decade of protecting farmers' livelihoods. 

Introduction 

• Launched: In 2016 by Prime Minister Narendra Modi to provide financial security to farmers against crop losses. 
• Objective: To safeguard farmers’ income and promote innovative agricultural practices. 
• Importance: A vital risk mitigation tool against natural disasters like droughts, floods, cyclones, hailstorms, and pest attacks. 
• Eligibility & Participation: Initially mandatory for loanee farmers, now 55% of enrolled farmers are non-loanee, indicating high voluntary acceptance. 

 Pradhan Mantri Fasal Bima Yojana (PMFBY) vs. Restructured Weather-Based Crop Insurance Scheme (RWBCIS) 

• PMFBY: Compensation based on actual crop loss assessment. 
• RWBCIS: Compensation based on weather indices like rainfall and temperature variations. 

Key Benefits of PMFBY

• Affordable Premiums: 
  • 2% for Kharif crops, 1.5% for Rabi crops, and 5% for commercial/horticultural crops. 
  • Government subsidizes the remaining premium. 
• Timely Compensation: Claims processed within two months of harvest to prevent debt burden on farmers. 
• Transparency & Accuracy: Advanced satellite, drone, and app-based monitoring ensures accurate claim settlements. 

 Strengthening PMFBY 

• Increased Coverage: 2023-24 saw record-high farmer participation, making PMFBY the world's largest crop insurance scheme. 
• Government Interventions: Improved transparency, faster claim settlements, and digital integration. 
• State Initiatives: Some states waived farmers' share of premiums, reducing their financial burden.