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Pradhan Mantri Fasal Bima Yojana (PMFBY) is a Government of India initiative launched in 2016. The scheme offers coverage to farmers against financial losses they incur due to unforeseen events. The policy covers the loss of crops because of local risks, post-harvest financial loss, loss due to natural disasters, unseasonal rains, pests, crop diseases, and more.
The scheme works mainly under the ‘One Nation, One Crop, One Premium’ motto. It primarily aims to provide affordable crop insurance to the farmers of our nation.
The PMFBY policy supports sustainable agricultural production. It helps reduce the financial losses the farmers face due to crop failure, further stabilising their incomes. The idea behind this initiative is simple - when the farmers of our nations have a stable income to sustain their family and production, they can invest in better equipment for farming that yields better results for them in the near future. Here are some of the key objectives of the Pradhan Mantri Fasal Bima Yojana:
Financial protection to farmers against loss/damages to their produce.
Stable income for farmers to ensure they can sustain their family and farming activities.
Encourage farmers to embrace new and modern farming practices.
Allow the flow of credit in the agricultural sector.
Protect farmers against production risks.
Offer affordable crop insurance.
Exemption of Goods and Service Tax from the scheme.
Features & Benefits of Pradhan Mantri Fasal Bima Yojana
Uniform Premium Rate
The premium rate for PMFBY is the same for all farmers. We’ve discussed the premium rates in the article further.
High Coverage at a Low Premium Price
As seen above, the farmer’s share in the premium is very low. The government takes care of the remaining amount. This means farmers can avail extensive coverage at a lower premium price.
Use of Technology
Latest technology is used to capture and upload data of the loss/damage to the product, reducing the delay in claim settlements.
Single Management
Enrolment of the beneficiaries, awareness of the scheme, and claim processing is managed by a single insurance company.
On-Account Claim Payments
The scheme provides on-account claim payment to the farmers if their produce faces local losses.
Loss Assessment
In case of adverse weather conditions and unseasonal rains, crop loss is assessed on an individual plot basis.
Crop Type |
Max Premium Payable by Farmers |
Kharif Food & Oilseeds |
2% of Sum Insured |
Rabi Food & Oilseeds |
1.5% of Sum Insured |
Annual Commercial & Horticultural Crops |
5% of Sum Insured |
The enrolment source for the PM Fasal Bima scheme depends on whether you are a loanee farmer or non-loanee farmer.
For Loanee Farmers: The enrolment source is banks
For Non-Loanee Farmers: The enrolment source is banks, communal service centres, National Agriculture Portal, Agriculture department office, or any authorised mediator of the scheme.
Sum Insured of PMFBY |
The insurance coverage under the scheme is equivalent to the sum insured determined by the Government of India. |
Compulsory Coverage |
|
Voluntary Coverage |
The scheme is optional for loanee farmers. |
Risk Covered |
Besides the loss caused to crops, the scheme also covers:
Any damage/loss to the notified crops due to the risks mentioned above should be informed to the insurer within 72 hours of its occurrence. |
The scheme does not cover loss or damage to crops due to the following reasons.
Malicious activities
Preventable risks
Loss due to war or nuclear risks
The claim process is based on the risks faced. The following table gives an overview of the same.
|
Claim Process |
In case of loss/damage to the yield |
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In case of prevented sowing, planting, and germination risk |
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In case of loss to standing crops (from sowing to harvesting) |
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In case of post-harvest loss |
The intimation of the claim should be made within 72 hours, either with the insurer or the government. |
In case of loss due to localised calamities |
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Claim intimation in case of any of the above-mentioned losses should be given within the specified period via any of the following ways:
Call on the Toll-Free No. 180030024088
Reach out to the District Agriculture Office. A representative will connect with you and guide you through the process.
Reach out to the concerned banking institute.
The stipulated period for loss assessment and submission of the report is as follows:
Appointment of loss assessor within 48 hours after receiving the intimation
Loss assessment to be completed within the next 10 days
Claim settlement/payment to farmers to be completed in the next 15 days (if the premium payment is clear) from loss assessment report.
Claim intimation in case of any of the above-mentioned losses should be given within the specified period via any of the following ways:
Call on the Toll-Free No. 180030024088
Reach out to the District Agriculture Office. A representative will connect with you and guide you through the process.
Reach out to the concerned banking institute.
The stipulated period for loss assessment and submission of the report is as follows:
Appointment of loss assessor within 48 hours after receiving the intimation
Loss assessment to be completed within the next 10 days
Claim settlement/payment to farmers to be completed in the next 15 days (if the premium payment is clear) from loss assessment report.
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FAQs
What is PMFBY?
PMFBY is a voluntary crop insurance scheme for all farmers cultivating notified crops in notified areas.
It provides financial protection against loss or damage to crops due to various reasons like natural calamities, pests, diseases, and localized disasters.
Who is eligible for PMFBY?
All farmers, including loanee and non-loanee farmers, cultivating notified crops in notified areas are eligible for PMFBY.
Non-loanee farmers need to submit land records or other supporting documents as proof of their insurable interest in the crop.
What crops are covered under PMFBY?
The list of notified crops covered under PMFBY varies depending on the season and the state.
Farmers can check the list of notified crops for their specific area on the PMFBY website or by contacting their nearest agriculture department office.
What are the benefits of PMFBY?
PMFBY provides financial support to farmers in case of crop losses, helping them to stabilize their income and continue farming.
The scheme offers affordable premiums, with a significant portion subsidized by the government.
PMFBY uses technology for data collection and claim settlement, ensuring transparency and efficiency.
What are the risks covered under PMFBY?
PMFBY covers a wide range of risks, including:
Prevented sowing, planting, and germination: If adverse weather conditions prevent farmers from sowing or planting their crops.
Loss of standing crops: If crops are damaged due to natural calamities, pests, diseases, or localized disasters.
Post-harvest loss: If produce is damaged after harvesting due to unseasonal rains or other factors.
However, some risks like war, nuclear incidents, and intentional damage are not covered.
How can farmers enroll in PMFBY?
Loanee farmers can enroll in PMFBY through their banks.
Non-loanee farmers can enroll through banks, Common Service Centers (CSCs), the National Agriculture Portal, or their local agriculture department office.
How are claims settled under PMFBY?
The claim settlement process varies depending on the type of loss.
In case of widespread crop losses, crop cutting experiments are conducted to determine the extent of damage.
For localized losses, farmers need to inform the insurance company or the government within a specified timeframe.
Claims are typically settled within 15 days of the loss assessment report.
What is the deadline for enrolling in PMFBY and paying premiums?
The deadline for enrolment varies depending on the state and season. Farmers should check with their local agriculture department or bank for the specific cut-off date in their area. Premium payment also needs to be completed by the cut-off date.
Can I pay my PMFBY premium in installments?
No, PMFBY premiums are typically due as a one-time payment.
Are there any discounts or benefits for early payment of premiums?
Some states offer early bird discounts for premium payments made before a specified date. Check with your local authorities for details.
What happens if I don't pay my premium on time?
Your insurance coverage might be delayed or even canceled if you miss the premium payment deadline.
Are there any minimum or maximum limits on the sum insured under PMFBY?
Yes, the minimum and maximum sum insured vary depending on the type of crop and location. Contact your bank or local agriculture department for specific limits.
Are there any specific requirements for claiming post-harvest losses?
You need to inform the insurance company or government within 72 hours of any post-harvest damage. Specific documentation, like harvest records and proof of loss, may be required.
What documentation do I need to submit when filing a claim?
The required documents can vary depending on the type of loss. Generally, you will need proof of identity, land records, crop details, and evidence of the loss.
