Pradhan Mantri Fasal Bima Yojna ( PMFBY )

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Pradhan Mantri Fasal Bima Yojana (PMFBY), launched in 2016, aims to provide a simple, affordable, and comprehensive crop insurance product to Indian farmers. This scheme covers all non-preventable natural risks from pre-sowing to post-harvest, ensuring financial support in the event of crop failure due to natural calamities, pests, or diseases.

Following the "One Nation, One Crop, One Premium" principle, PMFBY offers a comprehensive shield against crop losses caused by unpredictable natural hazards. This protection not only stabilizes farmers' income but also encourages them to adopt innovative practices.

What Makes it Better?

Compared to the previous schemes, the Pradhan Mantri Fasal Bima Yojana (PMFBY) offers a more comprehensive and robust shield for crops. The removal of premium capping under PMFBY allows farmers to receive full claim amounts without reductions.

PMFBY also covers individual farms nationwide for localized disasters like hailstorms, landslides, floods, and wildfires, as well as post-harvest losses from cyclones, heavy rain, and hail.

Details

Objective: The PMFBY works on the One Nation, One Crop, One Premium. To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crops as a result of natural calamities, pests & diseases.

  1. To stabilize the income of farmers to ensure their continuance in farming.
  2. To encourage farmers to adopt innovative and modern agricultural practices.
  3. To ensure the flow of credit to the agriculture sector.



Implementation Agency

The Scheme shall be implemented through a multi-agency framework by selected insurance companies under the overall guidance & control of the Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW), Ministry of Agriculture & Farmers Welfare (MoA&FW), Government of India (GOI) and the concerned State in co-ordination with various other agencies; viz Financial Institutions like Commercial Banks, Co-operative Banks, Regional Rural Banks and their regulatory bodies, Government Departments viz. Agriculture, Co-operation, Horticulture, Statistics, Revenue, Information/Science & Technology, Panchayati Raj etc



Notified Area: Notified Area is the Unit of Insurance decided by the State Govt. for notifying a Crop during a season. 



Risks to be covered : 

  1. Yield Losses: Comprehensive risk insurance is provided to cover yield losses due to non-preventable risks, such as
    1. Natural Fire and Lightning
    2. Storms, Hailstorms, Cyclones, Typhoons, Tempest, Hurricanes, Tornados, etc.
    3. Flood, Inundation, and Landslide
    4. Drought, Dry spells
    5. Pests/ Diseases etc.
  2. Prevented Sowing  (on notified area basis):- In cases where the majority of the insured farmers of a notified area, having the intent to sow/plant and incurred expenditure for the purpose, are prevented from sowing/planting the insured crop due to adverse weather conditions, shall be eligible for indemnity claims upto a maximum of 25% of the sum insured
  3. Post-Harvest Losses (individual farm basis): Coverage is available upto a maximum period of 14 days from harvesting for those crops which are kept in “cut & spread” condition to dry in the field after harvesting, against specific perils of cyclone / cyclonic rains, unseasonal rains throughout the country. 
  4. Localized Calamities (individual farm basis): Loss/damage resulting from the occurrence of identified localized risks i.e. hailstorm, landslide, and Inundation affecting isolated farms in the notified area.



Benefits

The benefits of this scheme are mentioned as under: 

  1. Comprehensive insurance coverage for Kharif and Rabi crops.
  2. Add on the coverage available for specific circumstances.
  3. Optional for farmers, both loanee and non-loanee.
  4. Stability in the income of farmers so that they can continue farming.

Premium Rate :

S. No.

Season

Crops

Maximum Insurance charges payable by the farmer (% of Sum Insured)

1

Kharif

Food & Oilseeds crops (all cereals, millets, & oilseeds, pulses)

2.0% of SI or Actuarial rate, whichever is less

2

Rabi

Food & Oilseeds crops (all cereals, millets, & oilseeds, pulses)

1.5% of SI or Actuarial rate, whichever is less

3

Kharif & Rabi

Annual Commercial / Annual Horticultural crops

5% of SI or Actuarial rate, whichever is less



The difference between the premium rate and the rate of Insurance charges payable by farmers shall be treated as Rate of Normal Premium Subsidy, which shall be shared equally by the Centre and State.

Eligibility

  1. The farmer must be a cultivator or a sharecropper on the insured land.
  2. Farmers must have a valid and authenticated land ownership certificate or a valid land tenancy agreement.
  3. The farmer must have applied for insurance coverage within the prescribed time frame, which is generally within 2 weeks of the start of the sowing season.
  4. They must not have received any compensation for the same crop loss from any other source.
  5. The farmer should have a valid bank account and provide details of their bank account, along with a valid identity proof, at the time of enrollment
  6. All farmers growing notified crops in a notified area during the season who have an insurable interest in the crop are eligible.

Exclusions

Exclusions: Risks and Losses arising out of the following perils shall be excluded:-

War & kindred perils, nuclear risks, riots, malicious damage, theft, act of enmity, grazed and/or destroyed by domestic and/or wild animals, In case of Post–Harvest losses the harvested crop bundled and heaped at a place before threshing, other preventable risks

myScheme, PIB

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