WHAT IS THE PRADHAN MANTRI FASAL BIMA YOJANA (PMFBY)
The PMFBY was launched in 2016 and replaces all the prevailing yield insurance schemes in India. The scheme has been launched with an impetus on crop sector. The scheme has extended coverage under localized risks, post-harvest losses etc. and aims at adoption of technology for the purpose of yield estimation. Through increased farmer awareness and low farmer premium rates the scheme aims at increasing the crop insurance penetration in India.
Objective:
Pradhan Mantri Fasal Bima Yojana (PMFBY) aims at supporting sustainable production in agriculture sector by way of -
a) Providing financial support to farmers suffering crop loss/damage arising out of unforeseen events
b) Stabilizing the income of farmers to ensure their continuance in farming
c) Encouraging farmers to adopt innovative and modern agricultural practices
d) Ensuring flow of credit to the agriculture sector; which will contribute to food security, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting farmers from production risks.
Eligibility Criteria
- Compulsory Component
All farmers availing Seasonal Agricultural Operations (SAO) loans from Financial Institutions (i.e. loanee farmers) for the notified crop(s) would be covered compulsorily.
- Voluntary Component
The Scheme would be optional for the non-loanee farmers.
Coverage of Risks and Exclusions:
Following stages of the crop and risks leading to crop loss are covered under the scheme.
- Prevented Sowing/ Planting Risk:
Insured area is prevented from sowing/ planting due to deficit rainfall or adverse seasonal conditions
- Standing Crop (Sowing to Harvesting):
Comprehensive risk insurance is provided to cover yield losses due to non- preventable risks, viz. Drought, Dry spells, Flood, Inundation, Pests and Diseases, Landslides, Natural Fire and Lightening, Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane and Tornado.
- Post-Harvest Losses:
coverage is available only up to a maximum period of two weeks from harvesting for those crops which are allowed to dry in cut and spread condition in the field after harvesting against specific perils of cyclone and cyclonic rains and unseasonal rains.
- Localized Calamities:
Loss/ damage resulting from occurrence of identified localized risks of hailstorm, landslide, and Inundation affecting isolated farms in the notified area.
General Exclusions: Losses arising out of war and nuclear risks, malicious damage and other preventable risks shall be excluded.
Click here for policy wording of PMFBY
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Click here for proposal form of PMFBY
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to visit Govt. of India website of Pradhan Mantri Fasal Bima Yojana
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KEY FEATURES OF PMFBY
Low Farmer Premium Rates
The rate of Insurance Charges payable by the farmer will be as per the following table
| Sr. No. |
Season |
Crops |
Maximum Insurance charges 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 and Rabi |
Annual Commercial / Annual Horticultural crops |
5% of SI or Actuarial rate, whichever is less |
Use of Technology
The new scheme envisages many new things such as utilizing innovative technologies like satellite imagery, vegetation indices etc. coupled with the mandatory usage of smart phones / hand held devices for increasing the speed and accuracy during yield estimation. In order to minimize the area discrepancy in coverage, the scheme also promotes the digitization of land records.
Increased Farmer Awareness
Efforts are being made to increase the awareness amongst farmers regarding PMFBY so that maximum number of farmers can enroll and avail benefits of the scheme.
Better Coverage
Pradhan Mantri Fasal Bima Yojana (PMFBY) aims at covering the losses suffered by farmers due to reduction in crop yield as estimated by the local appropriate government authorities.
The scheme also covers pre sowing losses, post-harvest losses due to cyclonic rains and losses due to unseasonal rainfall in India. There is a provision to cover losses due to localized calamities such as inundation also in addition to the previously covered hailstorm and landslide risks.
Source of Enrollment
| Farmer type |
Source of enrollment |
| Loanee |
Banks |
| Non-Loanee |
Banks, Broker, CSC e-Governance Services India Limited , Direct through website |