Title:
An Evaluation of the Performance Metrics and Financial Trajectory of the Pradhan Mantri Fasal Bima Yojana (PMFBY) in India from 2016 to 2021

Authors:
Nakshatra Pattabiraman, Kaviya Nijaritha Joseph, India

Abstract:

The research aims to examine Pradhan Mantri Fasal Bima Yojana's operational and financial effectiveness in India from 2016 to 2021. The study finds that many farmers enrol in PMFBY during the Kharif season. It highlights how Covid-19 reduced the accessibility to the scheme but there was a 1% increase in the farmers covered during 2020-2021. The beneficiary ratios are also less than 50% throughout the years which signifies that the farmers who benefited under the scheme are almost less than half of the total farmers enrolled. During 2020-2021, the claims paid to gross premium ratio was 0.524 which signifies that insurance companies paid claim amounts equal to half that of the gross premium. The gross premium to sum assured ratio is greater than the claims paid to sum assured ratio every year, this shows that the scheme is financially viable and it can be concluded that the insurance companies gained at the expense of farmers. The research proceeds to point out that PMFBY has been on a declining trend for the past couple of years. A few suggestions are given in the study to help revive the scheme and thereby benefit the farmers of India.

DOI: https://doi.org/10.51505/IJEBMR.2024.81201