PM Fasal Bima Yojna may lose sheen if BJP fulfills promise on scheme

Crop insurance scheme is facing challenges in implementation. Between FY16 and FY17, number of farmers enrolled declined by 15% from about 57.3 min to 48.5 mn

If the BJP-led government sticks to its election promise of making Pradhan Mantri Fasal Bima Yojana (PMFBY) voluntary, it might take away much sheen from the scheme, say experts.

At present, the scheme is compulsory for loanee farmers, who constitute about 80 per cent of the total enrolments. So, as soon as a farmer takes a bank loan, the premium for the scheme gets auto-deducted. For the rest, enrolment is optional. According to insurers, this would lead to risk selection, leading to rise in premium and reduction in the volumes.

“Currently there is no selection involved in the scheme. If