Rajasthan’s PM Fasal Bima Yojana 2026 cuts premiums, adds YES & TECH technology, faster surveys, policy delivery within seven days and 12% interest on delayed claims.
By Robin Kumar Attri
Premium rate cut from 9.63% to 1.19%
Farmers may save around ₹335 crore
YES & TECH to improve crop assessment
Insurance policy must be given within 7 days
Delayed claims will attract 12% annual interest
The Pradhan Mantri Fasal Bima Yojana (PMFBY) 2026 has undergone several major changes for farmers in Rajasthan. The new tender process for the crop insurance scheme has been completed, bringing changes aimed at reducing farmers’ premium burden, improving claim settlement, increasing transparency and making insurance companies more accountable.
The new system gives greater importance to technology-based crop assessment, timely surveys and claim payments. The government expects the revised premium structure to help Rajasthan farmers save around ₹335 crore.
Under the new tender, Rajasthan’s 41 districts have been divided into eight clusters. An insurance company can now be allocated a maximum of two clusters.
The government expects this arrangement to increase competition among insurance companies and encourage them to provide better and faster services to farmers.
One of the biggest changes is the reduction in the average gross premium rate.
The average gross premium rate, which was 9.63% under the previous tender, has been reduced to 1.19% under the new system.
The total premium payable by farmers has also come down from ₹979.15 crore to around ₹645 crore. This is expected to provide farmers with estimated savings of approximately ₹335 crore.
The state government's share of premium subsidy has also been reduced significantly, from ₹1,878.27 crore to around ₹51 crore.
Provision | New Order |
Average Gross Premium Rate | 1.19% |
Previous Average Premium Rate | 9.63% |
Total Premium Payable by Farmers | Around ₹645 crore |
Estimated Farmer Savings | Around ₹335 crore |
Total Districts | 41 |
Total Clusters | 8 |
Maximum Clusters per Insurance Company | 2 |
For the first time, YES & TECH technology has been effectively incorporated into PM Fasal Bima Yojana 2026 in Rajasthan.
The technology is intended to make crop yield estimation more scientific, accurate and transparent while reducing human intervention in insurance claim assessment.
For wheat and soybean, crop cutting experiments and YES & TECH-based data will be given a 50:50 weightage. For other selected crops in the future, the ratio will be 70:30.
The use of technology-based data is expected to improve the accuracy of crop yield calculations and make the claim assessment process more transparent.
The new tender also introduces financial and administrative provisions to make insurance companies more responsible for implementing the scheme effectively.
Insurance companies will have to provide a 2% bid security, subject to a maximum limit of ₹100 crore. A 5% performance security has also been included in the new provisions.
These measures are intended to ensure that insurance companies fulfil their responsibilities properly and provide timely services to farmers.
The new PMFBY system includes penalties for negligence and delays by insurance companies.
If a surveyor is not appointed within 48 hours after post-harvest damage is reported, a penalty of up to ₹20,000 per unit can be imposed.
If the survey is not completed within the prescribed period, the insurance company can face a ₹1,000 penalty per complaint.
There is also a provision to protect farmers against delays in claim payments. If an insurance company fails to pay a claim within the stipulated period, it will have to pay 12% annual interest on the delayed amount.
Another important provision is related to the delivery of the insurance policy.
The insurance company will be required to provide the farmer with a copy of the crop insurance policy within seven days of its issuance.
The farmer will also receive a copy of the survey report after the assessment of post-harvest crop losses. This will give farmers documentary evidence of the crop-loss assessment.
The new system also changes the process of documenting post-harvest loss surveys.
Three copies of the survey form will be prepared:
One copy will be given to the farmer.
One copy will be provided to the Agriculture Department.
One copy will remain with the surveyor for official records.
Giving a copy directly to the farmer is expected to improve transparency and provide documentary proof of the survey and reported crop loss.
To ensure better implementation of the scheme and faster resolution of farmers' problems, the insurance company will appoint a technically qualified employee in every district under the Joint Director of Agriculture (Extension).
The new arrangement also provides for the deployment of two officers in the Agriculture Commissionerate.
This is expected to improve coordination between farmers, insurance companies and the Agriculture Department.
The existing 60:130 cap-and-cap model under the Pradhan Mantri Fasal Bima Yojana will continue under the new system.
Along with basic crop insurance coverage, farmers will continue to receive protection for failed or interrupted sowing during the Kharif season and post-harvest losses during both Kharif and Rabi seasons.
The revised PM Fasal Bima Yojana 2026 in Rajasthan focuses on four major areas: lower premiums, technology, transparency and accountability.
The reduction in the average gross premium rate from 9.63% to 1.19% is expected to reduce the financial burden on farmers, with estimated savings of around ₹335 crore.
At the same time, YES & TECH-based crop yield assessment can make claim calculations more scientific and reduce human intervention. Mandatory policy delivery within seven days, copies of survey reports for farmers and penalties for delays are also expected to make the insurance process more transparent.
The provision of 12% annual interest on delayed claim payments further increases the responsibility of insurance companies to settle claims on time.
According to Agriculture Minister Dr. Kirori Lal, the objective of the revised system is to make the Pradhan Mantri Fasal Bima Yojana more transparent, technology-based, accountable and farmer-friendly.
Overall, the new PMFBY system is expected to provide Rajasthan farmers with lower insurance costs, better documentation, more accurate crop-loss assessment and stronger protection against delays when they suffer crop losses due to natural calamities.
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The revised PM Fasal Bima Yojana 2026 in Rajasthan aims to make crop insurance more affordable, transparent and farmer-friendly. Lower premium rates could save farmers around ₹335 crore, while YES & TECH technology may improve crop assessment. Strict penalties, faster surveys, policy delivery within seven days and 12% interest on delayed claims will strengthen accountability and help farmers receive timely financial support after crop losses.
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