Rythu Bima
- Telangana Vision 2047
- Rythu Bima
Shri A. Revanth Reddy
Chief Minister of Telangana
Telangana stands with farmers
In life and in loss, Telangana stands firmly by its farmers. The Rythu Bima (farmer’s group life insurance) scheme is a first-of-its-kind social security initiative offering crucial financial support to farming families during times of distress.
“Rythu Bima is the world’s largest farmer life insurance scheme. By adding lakhs of new beneficiaries, we not only delivered financial relief but strengthened rural resilience and farmer dignity.”
Designed and implemented by the Telangana Congress government, the Rythu Bima scheme reflects the State’s strong commitment towards safeguarding farmers and their families.
As of FY 2024-25, the Rythu Bima scheme was expanded to cover an unprecedented 47.87 lakh eligible farmers, including 2.74 lakh new entrants inducted in August 2024. The government has paid a premium of Rs. 1,455.17 crore to LIC, at Rs. 3,600 per farmer, to ensure seamless renewal of 45.13 lakh existing policies.
Rythu Bima: What, when and how?
In the unfortunate event of a farmer’s death, an assured sum of insurance will be disbursed to bring relief to his immediate family. Three-fourths of the premium amount is paid by the State government to the Life Insurance Corporation of India (LIC).
- Insurance coverage: Rs. 5 lakh per eligible farmer
- Coverage type: Natural and accidental deaths
- Eligibility: Telangana farmers aged between 18 and 59 years
- Claim settlement: Within 10 days
- Settlement mode: Direct bank transfer (DBT) to the nominee’s account
- Claim process: Completely online, fast and transparent
The initiative restructured the insurance framework to make it more farmer-centric and inclusive. Three-fourths (75%) of the insurance premium is paid by the State government, with LIC managing the claims. This significantly eases the financial load on farmers while increasing the State’s own outlay.
The scheme is particularly valuable to small and marginal farmers from vulnerable sections, providing the much-needed financial cushioning during family crises.
According to the Telangana Socio Economic Outlook 2024, the scheme's objective is “to provide financial relief and social security to the family members/dependents, in case of loss of a farmer’s life due to any reason.”
- Besides providing a social and financial safety net for Telangana’s farmers, the scheme also brings a sense of security, peace and respite to the farming community.
- By addressing the economic uncertainties faced by farming households, Rythu Bima stands as a landmark initiative in strengthening the Farmers Schemes.
- Rythu Bima stands as a transformative pillar in Telangana’s farmer welfare ecosystem and ensures that no farming family is left behind in the face of loss.