India's national crop insurance scheme, PMFBY, aims to protect farmers from production risks by covering seasonal input costs at the acreage level. The scheme is a public-private partnership where the central government designs the framework, states implement it, and premiums are shared among the government, states, and farmers. Alternative risk transfer mechanisms (ARTMs), such as cup-and-cap models, have been introduced to share premium surpluses and losses between insurers and the government. These mechanisms have helped reduce premium rates in some portfolios, but pricing adequacy remains a challenge, especially in drought-prone regions.