Insurance Behaviour of Insured Farmers under Pradhan Mantri Fasal Bima Yojna (PMFBY) in Central India

Abstract

To identify insurance behaviour of insured farmer’s, the study was carried out by Agro Economic Research Centre, JNKVV, Jabalpur. Umaria, Jabalpur and Sagar districts have been selected randomly under the ICICI-Lombard, AIC and HDFC-ERGO were found to be major implementing agencies of PMFBY in Madhya Pradesh. From each agency 40 respondents were selected from the respective districts constituting sample size of 120 respondents. District Cooperative Bank was found to be the main implementing bank in the area under study. 90 per cent of the HHS availed crop insurance facility under PMFBY. More than 80 per cent HHs were found to be aware of PMFBY and the main source of awareness was found to be TV/Newspaper and relatives/friends (>35%) followed by government awareness programmes (>20%) and insurance companies (>10%) among HHs. The major events of losses were found to be yield loss (36.67%) followed by prevented sowing/planting due to deficit rainfall or adverse weather (3.33%). The compensation secured in Kharif was found to be more in case of loanee insured (Rs. 8236/-) as compared to non-loanee insured (Rs. 6379/-) HHs. The majority of HHs did not know the complete feature of PMFBY in totality and opined that this is the same as the previous scheme (90%). It was also observed that 44 and 66 per cent of loanee and non-loanee insured HHs used to inform the event of losses to bank officials (>35%) and local government officials (>57%).