The agriculture sector occupies an important place in the Indian economy. Conditions such as weather, pest attacks, irregular rainfall and changes in moisture affecting agricultural yield are a common problem in India. To cover this risk, Pradhan Mantri Fasal Bima Yojna is a crop insurance scheme sponsored by the Government of India was launched in 2016. After implementation of this scheme still the farmers are not fully adopting it, but the report published by websites are stated that the level of utilization of scheme was increasing but actually after analysis it was found that only few farmers are getting the benefits from the scheme. There were contradictions between the opinions of farmers and published reports. In this context, the study has been conducted to evaluate the impact of crop insurance and its effective utilization of funds with special reference to Kanakapura Taluk in Karnataka. The study is descriptive and Exploratory in Nature. For the purpose of data analysis both primary data and secondary data were collected from farmers, various websites related to crop insurance and state wise crop insurance report was taken to check the effectiveness of the scheme in different states and also statistical tools like mean and percentage were used to study the impact of crop insurance on farmers and advanced excel is used to analyse the secondary data. Through the study, it was identified that the benefit derived by the farmers from Crop insurance is not satisfiable due to its stringent process and lack support from field officers. Apart from this, the contribution made by the farmers, State and Central government for crop insurance was not fully received by the farmers but only a fixed percentage was received as a claim based on the report submitted by the agricultural field officers who visited to that particular insured land. It was also noted that there was a drastic difference between the Applications received from farmers and applicants benefited from crop insurance, this difference may lead to under-utilization of funds allocated to crop insurance. If these underutilized funds had been invested in developmental activities of Government, which would have been the great sources of revenue generation. Based on the detailed report it was proved that, though the scheme is Yield Based but premium is paid by the farmer based on the Acres of land owned and what they have cultivated not on the expected crop yield.

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Keywords: Crop Insurance, Natural Disasters, Fund Utilization, Farmers, Agricultural Sector.