The Pradhan Mantri Fasal Bima Yojana (PMFBY) was launched in 2016. It is a scheme that provides coverage against financial losses suffered by farmers due to various unfortunate events. It covers crop failure due to localized risks, post-harvest losses, natural calamities, unseasonal rainfall, pests, crop diseases, and so on.
The scheme operates under the motto ‘One Nation, One Crop, One Premium’ and aims to provide affordable crop Insurance to farmers in India. The goal of Pradhan Mantri Fasal Bima Yojana is to expand the penetration of crop in Insurance in India with a primary focus to cover total sown area in the country.
Key Features of PMFBY
| Harvest Seasons Covered | Kharif & Rabi |
| Prevented Sowing/Planting | Covered |
| Mid-Season Adversity | Covered |
| Localized Calamities | Covered |
| Post-Harvest Losses | Covered |
Objective of Pradhan Mantri Fasal Bima Yojana
PMFBY aims at supporting sustainable production in agriculture sector. By reducing the financial loss of crop failure, it helps stabilize farmer incomes. And when farmers have a stable income, they can invest in better farming practices, which in turn, brings several benefits.
- To provide financial support to farmers against crop damage/loss.
- To stabilize the income of farmers to ensure their continuance in farming.
- To encourage farmers to adopt innovative & modern agricultural practices.
- To ensure flow of credit to the agriculture sector.
- To ensure competitiveness of agriculture sector.
- To protect farmers from production risks
- To make crop insurance affordable.
- Goods & Service Tax is exempted for this scheme.
Who is eligible for Pradhan Mantri Fasal Bima Yojana?
The scheme provides Insurance coverage to all farmers on voluntary basis for their crops as notified by the State Government. Following are the eligibility criteria for the PMFBY scheme.
All farmers including sharecroppers and tenant farmers growing the notified crops in the notified areas are eligible for coverage.
To avail coverage under the Pradhan Mantri Fasal Bhima Yojana, farmers should have insurable interest for the notified/insured crops.
Non-loanee farmers need to submit land records prevailing in the State such as Records of Right (RoR), Land possession Certificate (LPC), etc. and/ or applicable contract/agreement details/ other documents notified as permitted by the concerned State Government (in case of sharecroppers/ tenant farmers).
Coverage of PMFBY crop insurance scheme
Following stages of the crop and risks leading to crop loss are covered under the scheme:
Basic Product: The scheme covers the risk of: Standing Crop (Sowing to Harvesting): Comprehensive risk insurance is provided to cover yield losses on area approach basis due to non-preventable risks, viz. Drought, Dry spells, Flood, Inundation, wide spread Pests and Diseases attack, Landslides, Fire due to natural causes, lightening, Storm, Hailstorm, and Cyclone.
Add-On Coverage: Apart from the mandatory basic product, the states Govts./UTs ,in consultation with SLCCCI may choose any or all of the following add-on covers based on need of specific crop/area in their State to cover following stages of the crop and risks leading to crop loss:
- Prevented Sowing/ Planting Risk: If more than 75% of a notified crop area in an insurance unit remains unsown, or there is germination failure during sowing period due to adverse weather conditions such as deficit rainfall or adverse seasonal conditions, then the farmers are eligible for preventing sowing failure risk. The lump sum payout to insured farmers under this cover would be 25% of the sum insured and the insurance cover will be terminated.
- Mid-Season Adversity: Loss in case of adverse seasonal conditions during the crop season viz. floods, prolonged dry spells and severe drought etc., wherein expected yield during the season is likely to be less than 50% of Normal Yield. The pay-out to insured farmers under this cover would be 25% of the likely claims, subject to adjustment against final claims.
- Post-Harvest Losses: Coverage is available only up to a maximum period of two weeks (14 Days) from harvesting, for those crops which are required to be dried in cut and spread / small bundled condition in the field after harvesting, against specific perils of hailstorm, cyclone, cyclonic rains and unseasonal rains. Assessment of damage will be made on individual farm basis.
- Localized Calamities: Loss/damage to notified insured crops resulting from occurrence of identified localized risks of hailstorm, landslide, inundation, cloud burst and natural fire due to lightening affecting isolated farms in the notified area.
Exclusions of the PMFBY scheme
While the Pradhan Mantri Fasal Bima Yojana does provide farmers comprehensive coverage against crop damage and losses, it does have some standard exclusions. As such, this crop insurance scheme excludes losses arising due to:
- War and nuclear risks.
- Malicious damages.
- Other preventable risks.
Pradhan Mantri Fasal Bima Yojana Claim Process
It is essential for farmers/designated agencies to provide intimation in case of crop failure or post-harvest losses due to localized calamites as each claim will be assessed on an individual insured farm level. Further, farmer must provide intimation of the loss within 72 hours directly to us on our dedicated toll-free number for crop related queries:1800-103-5490. Intimation can also be made to the insurance company, concerned bank, local agriculture department Govt./district officials or on National Crop Insurance Portal.
Time frame for loss assessment and submission of report:
- Appointment of loss assessor within 48 hours from receipt of information.
- Loss assessment to be completed within next 10 days.
- Claim settlement/payment to the farmers to be completed in next 15 days (subject to receipt of premium) from loss assessment report.
Pradhan Mantri Fasal Bima Yojana Premium Charges
The premium charge for the Pradhan Mantri Fasal Bima Yojana Premium is shared equally by the farmer and the government. Farmer’s contribution to premium for PMFBY crop insurance is as per the table given and remaining premium is borne by State and Central Government.
| Sr. | Cropping Season | Type of Crop | Max Premium Payable By Farmer(% Of Sum Insured) |
|---|---|---|---|
| 1 | Kharif | All food grain and Oilseed crops (all Cereals, Millets, Pulses and Oilseed crops) | 2.0% of SI or Actuarial rate, whichever is less |
| 2 | Rabi | All food grain and Oilseed crops (all Cereals, Millets, Pulses and Oilseed crops) | 1.5% of SI or Actuarial rate, whichever is less |
| 3 | Kharif & Rabi | Annual Commercial/Horticultural crops | 5% of SI or Actuarial rate, whichever is less |
How to file a claim?
For any losses arising out of the post-harvest or Localsed calamity, farmer should contact our company and intimate the loss within 72 hours of the event occurring along with survey number-wise insured crop and acreage affected and the Premium payment verification details as given to the Bank / Intermediary / CSC centers. Local Newspaper cutting and any other available evidence to substantiate occurrence of loss event and severity of the loss, if any should also be provided as applicable.
- Farmers can reach out to us on 1800 103 5499 and update as soon as the loss has occurred.
- Farmers can also reach out to the District Agriculture Office (DAO) and our representative will be intimated by the DAO office.
Farmers can also reach out to their respective Banks.
What crops does Pradhan Mantri Fasal Bima Yojana cover?
The PMFBY crop insurance scheme covers the following crops:
- Food crops (Cereals, Millets and Pulses)
- Oilseeds
- Annual Commercial / Annual Horticultural crops
What risks are covered under PMFBY crop insurance?
Pradhan Mantri Fasal Bima Yojana covers several unforeseen perils that cause crop damage, prior to sowing and post harvesting as well. These include acts of God such as cyclones, storms, hail, lightening, and so on. Other localized calamities that are covered include pest attacks & weather vagaries such excess or deficit rainfall, excess or deficit temperature, humidity, frost, wind speed etc.
Following risks leading to crop loss are to be covered under the scheme: –
- YIELD LOSSES (standing crops, on notified area basis): Comprehensive risk insurance is provided to cover yield losses due to non-preventable risks, such as (i) Natural Fire and Lightning (ii) Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado etc. (iii) Flood, Inundation and Landslide (iv) Drought, Dry spells (v) Pests/ Diseases etc.
- PREVENTED SOWING (on notified area basis): – In cases where majority of the insured farmers of a notified area, having 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.
- 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.
- LOCALISED CALAMITIES (individual farm basis): Loss / damage resulting from occurrence of identified localized risks i.e. hailstorm, landslide, and Inundation affecting isolated farms in the notified area.
How is the sum insured of PMFBY scheme decided?
Sum insured will be equal to the Scale of Finance as decided by the District Level Technical Committee. This will be pre-declared by the State Level Coordination Committee on Crop Insurance (SLCCCI) and will be notified. There will be no other applicable calculation of Scale of Finance. Therefore, the sum insured for every individual farmer would equal to the Scale of Finance per hectare multiplied by area of the notified crop proposed by the farmer for insurance.
Note: Hectare will be used for unit of scale to measure the farmer’s area under cultivation. The sum insured per hectare for loanee and non-loanee farmers will be the same. However, the sum insured for irrigated and un-irrigated areas may be separate.
What is Crop Insurance ?
Crop insurance is an easy way for farmers to protect themselves against financial losses due to uncertainties that may arise due to crop failures or losses caused by unforeseen perils that are beyond their control.
Voluntary Component
The Scheme is optional for the non-loanee farmers; however cultivators/farmers desirous of availing crop insurance for any notified crop in any notified insurance unit may approach nearest bank branch/ Primary Agriculture Cooperative Societies (PACS)/ Common Service center (CSC)/ authorized channel partners/ insurance intermediary of insurance company, within cut-off date of enrollment. The cultivator/farmer must fill-up the proposal form completely in prescribed format, submit the proposal form along with requisite premium to bank branch/ Insurance Intermediary/ CSC Centers along with necessary documentary evidence regarding his insurable interest in cultivating land/ crop (e.g. Ownership/ tenancy/ cultivation rights) proposed for insurance.
The farmer desiring for crop insurance should have a bank account in any branch of the designated bank, and the details of bank account should be provided in the proposal form.
The farmers should mention their land identification number (Khasra Number) in the Proposal form and must provide documentary evidence with regard to possession of cultivable land. The farmers/cultivators must furnish area sown confirmation certificate.
The farmer should ensure that he/she gets insurance coverage for notified crop(s) cultivated/ proposed to be cultivated, in a piece of land from a single source only. No duplicate or double Insurance is allowed and in any such cases farmer will not be eligible for coverage. The insurance company shall reserve the right to repudiate all such claims and not refund the premium as well in such cases.
Company may also take legal action against such farmers.
What are important points about the policy?
- Farmers can enroll under the scheme via their bank branches, nearest CSC Centers or insurance intermediary as authorized by IRDA.
- All enrolments need to necessarily be completed within the cut-off date as defined in the respective State Government notification and farmer share of premium duly remitted by the Bank or Intermediary within the cut-off date to the Insurance Company.
- In case the farmer changes the crop to be sown, he should intimate the change to concerned banks at least 2 working days prior to cut-off-date. In case the premium paid was higher, insurance company will refund the excess.
- In case of Tenant/ share farmers obtaining coverage necessary documentary evidence of land records prevailing in the State (Records of Right (RoR) Land possession Certificate (LPC) etc.) and/ or applicable contract/agreement details/ other documents notified/ permitted by concerned State Government should be provided at the time of enrolment.
- Service Tax is exempted for this scheme.
Details about Compulsory and Voluntary Component of the policy
All farmers availing Seasonal Agricultural Operations (SAO) loans from Financial Institutions (i.e. loanee farmers) for the notified crop(s) would be covered compulsorily. It is mandatory for all loanee cultivators to insist on insurance coverage as per provisions of the Scheme.
- Non-standard KCC /crop loans shall not be covered compulsorily by the concerned Banks/Govt. regulator. However, bank branches may facilitate such farmers for enrolment as non-loanee farmers.
- Merely, sanctioning of crop loan against other collateral securities including fixed deposits, gold/jewel loans, mortgage loans etc. without having insurable interest of the farmer on the insurable land and notified crops shall not be covered under the Scheme.
Any changes in insured crop should be brought to the notice of the bank at least 2 working days prior to cut-off date for enrollment.
Insurance Proposals are accepted only upto a stipulated cut-off date as declared by the State Level Coordination Committee on Crop Insurance (SLCCCI).
How must the premiums be paid for PMFBY?
Premium for the Prdhan Mantri Fasal Bima Yojana must be paid through of NEFT only. Demand Drafts or Cheques are not accepted. Similarly offline applications for enrolment are not accepted. Every application for this scheme needs to be filled-in online.
