India's ambitious ₹30,000 crore plan to broaden crop insurance | Fusion - WeRIndia

India’s ambitious ₹30,000 crore plan to broaden crop insurance

India's ambitious ₹30,000 crore plan to broaden crop insurance

India’s government is embarking on a monumental ₹30,000 crore endeavour to transform the Pradhan Mantri Fasal Bima Yojana (PMFBY) portal into an extensive platform.

This initiative aims to expand insurance coverage from crops to encompass various assets, including ponds, tractors, livestock etc.

The driving force behind this transformation is the AIDE app, which was launched in July and is set to revolutionize crop insurance accessibility for farmers.

Through the AIDE app, insurance intermediaries will not only facilitate crop insurance enrollment but will also extend coverage to a staggering 40 million farmers for non-subsidized schemes.

This marks a significant shift from being just a portal to becoming a comprehensive platform for farmers.

The PMFBY, a central government-sponsored crop insurance scheme, has recently transformed.

It incorporated new technological initiatives like YES-Tech, the WINDS portal, and the AIDE app. This has signalled a turning point for crop insurance in India.

As a result of this restructuring, the insured area expanded by 12% in 2022-23 compared to the previous year, covering over 49.7 million hectares.

It is anticipated that the insured acreage will reach an all-time high of 57.5-60 million hectares during the 2023-24 Kharif season.

Furthermore, several states, including Andhra Pradesh, have re-enlisted in the scheme. Also, others are planning to rejoin due to the universal approach of the restructured PMFBY scheme.

The scheme aims to cover all farmers in their respective regions. After the government settled long-pending claims amounting to ₹765 crores since the 2018-19 Kharif season, Jharkhand has decided to re-enter the scheme.

The number of insurers participating has also risen, with 15 taking part in the 2023 tender cycle, compared to 11 in 2020.

The expansion of PMFBY to cover various agricultural assets is a significant step towards providing comprehensive insurance solutions to India’s farming community, offering greater financial security and stability.

Image from Pxhere (Free for commercial use / CC0 Public Domain)

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