The data consisting progress of Crop Insurance Scheme (CIS) in terms of the extent of beneficiary farmers, area coverage, amount insured, premium collected and claims paid to the beneficiaries since 1999-2000 to 2006-2007 were collected from the office of Agricultural Commissioner, Pune. The primary data for the year 2006-07 were collected from 60 sample farms in which 30 were beneficiaries and 30 were non-beneficiaries. The data on relevant aspects related to gross farm returns and problems faced by the sample farmers were collected by survey method with the help of specially designed schedule. The study revealed that the number of farmers benefited, sum insured, premium paid and total claims had increased by 34.70 lakh, 4713.10, 99.40 and 244.60 crores i.e. 598, 825, 1322 and 3176 per cent, respectively from 1999 to 2006. The premium rates are 3.5 % for bajra and oilseed crops, 2.5 % for other kharif crops, 1.5 % for wheat and 2 % for other rabi crops. The small and marginal farmers are provided subsidy of 50 % on premium charged from them. It has been decided to implement the Crop Insurance Scheme for kharif 2007-08 on the conditions that the total sum insured will be 150 % of average yield. The total sum insured was highest (` 74000 to 1,00,000) in the case of sugarcane and followed by onion (` 43,928 ), paddy (` 22,081), groundnut (` 20,178), soybean (` 18,437) tur (` 13,705 ) and cotton (` 13,487). The proportionate area under foodgrain crops, sugarcane and vegetable crops was maximum on beneficiary farms as compared to non-beneficiary farms while that of oilseed crops and fodder crops was maximum on farms of non-beneficiary farms. Near about 93 per cent of farmers reported that they got low compensation. The delayed compensation was pointed out by 90 per cent farmers. Non-inclusion of fruit crops under the CIS and defective method of determining crop loss were raised by 86.67 and 83.33 per cent farmers, respectively. The problems such as the method of determining compensation is defective and division wise risk is considered was reported by 80.00 per cent sample farmers.