Archive · 24 May 2025
Maharashtra Crop Insurance: Premiums Exceed Payouts
In Maharashtra, farmers pay money for crop insurance to protect themselves if their crops are damaged.
Over eight years, insurance companies collected more money in premiums from farmers than they paid out to farmers.
This happened because there were both bad years with natural disasters and good years with plentiful crops.
A large number of farmers applied for the insurance, but fewer received compensation.
The data shows that the premiums paid were significantly higher than the payouts received.
Premiums paid to insurance companies totaled Rs 52,969 crore.
Payouts to farmers were Rs 36,350 crore.
12.8 crore farmers applied for the insurance scheme.
6.2 crore farmers received compensation.
The period covered was from 2016-17 to 2023-24.
- Who
- Farmers and insurance companies in Maharashtra
- What
- Crop insurance premiums exceeding payouts to farmers
- When
- Between 2016-17 and 2023-24
- Where
- Maharashtra
- Why
- Insurance companies received more premiums than payouts due to natural disasters and good crop years
Farmers
Insurance Companies
Scheme Effectiveness
Farmers
PMFBY design is flawed and leads to high levels of rejected claims from farmers, benefiting insurance companies.
Insurance Companies
The PMFBY scheme has been affected by the natural disasters and good crop years
- Premiums Paid
- Rs 52,969 crore
- Payout to Farmers
- Rs 36,350 crore
- Years Covered
- 2016-17 to 2023-24
- Farmers Applied
- 12.8 crore
- Farmers Compensated
- 6.2 crore
