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Pradhan Mantri Fasal Bima Yojana (PMFBY)
4
1
Jul 2023

The scheme works mainly under the ‘One Nation, One Crop, One Premium’ motto. It offers coverage to the nation’s farmers against financial losses they incur due to unforeseen events. The main objectives of this scheme are providing affordable crop insurance to farmers, stabilising the income of the farmers and encouraging farmers to adopt innovative agricultural practices.

More Information on PMFBY:

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What are the benefits of PMFBY?

  • Financial support: The PMFBY provides financial support to farmers in the event of crop failure. The amount of support depends on the type of crop, the extent of crop loss, and the insurance premium paid by the farmer.
  • Stabilizing income: The PMFBY helps to stabilize the income of farmers by providing financial support in the event of crop failure. This helps to ensure that farmers can continue to meet their financial obligations, such as repaying loans and supporting their families.
  • Encouraging adoption of modern practices: The PMFBY encourages farmers to adopt modern agricultural practices by providing financial support for the purchase of seeds, fertilizers, and other inputs. This helps to improve crop yields and reduce the risk of crop failure.
  • Promoting crop diversification: The PMFBY promotes crop diversification by providing financial support for the cultivation of crops that are less susceptible to pests and diseases. This helps to reduce the risk of crop failure and improve the overall resilience of the agricultural sector.
  • Crop-specific insurance: The PMFBY offers crop-specific insurance, which means that the premium and benefits are based on the type of crop being insured. This helps to ensure that farmers are adequately protected in the event of crop failure.
  • Easy claim process: The claim process under the PMFBY is relatively easy. Farmers can file a claim online or through a local insurance agent.
  • Government subsidy: The government provides a subsidy on the premium for the PMFBY. This means that farmers only have to pay a portion of the premium, which makes the scheme more affordable.

    Documents required

  • Passport size photograph of the farmer
  • Identity proof of the farmer (Aadhar card, PAN card, Voter ID, Driving license, or Passport)
  • Address proof of the farmer (Aadhar card, Voter ID, Driving license, or Passport)
  • If the field is owned by the farmer, the ‘Khasra’ paper and account number need to be kept together
  • In case the crop is only sown in the field, evidence for the same need to be presented
  • As evidence, the farmers should get a letter written from people such as Pradhan, Sarpanch, Goan Pradhan, Patwari, etc.

    FAQs

  • What is Crop Insurance?
    Crop insurance is a means of protecting the agriculturist against financial losses due to uncertainties that may arise from crop failures/losses arising from named or all unforeseen perils beyond their control.
  • What is Weather based Crop Insurance?
    Weather Based Crop Insurance aims to mitigate the hardship of the insured farmers against the likelihood of financial loss on account of anticipated crop loss resulting from incidence of adverse conditions of weather parameters like rainfall, temperature, frost, humidity etc.
  • What are the different types of crops covered?
    1) Food crops (Cereals, Millets and Pulses), 2) Oilseeds, 3) Annual Commercial / Annual Horticultural crops
  • What is the Sum Insured / Coverage Limit?
    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 Premium Rates and Premium Subsidy?
    The Actuarial Premium Rate (APR) would be charged under PMFBY by implementing agency (IA). The rate of Insurance Charges payable by the farmer will be as follows: 1) Kharif: All food grain and Oilseeds crops(all Cereals, Millets, Pulses and Oilseeds crops) 2.0% of SI or Actuarial rate, whichever is less. 2) Rabi: All foodgrain and Oilseeds crops(all Cereals, Millets, Pulses and Oilseeds 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.
  • Which companies provide Crop Insurance?
    Agriculture Insurance Company, Cholamandalam MS General Insurance Company, Reliance General Insurance Co. Ltd., Bajaj Allianz, Future Generali India Insurance Co. Ltd., HDFC ERGO General Insurance Co. Ltd., IFFCO Tokio General Insurance Co. Ltd., Universal Sompo General Insurance Company, ICICI Lombard General Insurance Co. Ltd., Tata AIG General Insurance Co. Ltd., SBI General Insurance, United India Insurance Co.

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