Agriculture provides livelihood to more people in India than all other sectors put together. Agriculture production is highly volatile due to risks of uncertain weather, large rain fed area, incidence of pests and diseases. Pradhan Mantri Fasal Bima Yojana (PMFBY) provides comprehensive coverage to the farmers against many such unforeseen crop losses.
- To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop.
- To stabilize the income of farmers to ensure their continuous process in farming.
- To encourage farmers to adopt innovative and modern agricultural practices.
- To ensure flow of credit to the agriculture sector.
-
Uniform Premium: Farmers need to pay only maximum 2% only on Sum Insured as premium for all Kharif crops and maximum of 1.5% for all Rabi crops. In case of annual commercial and horticultural crops, maximum of 5% premium is payable.
-
Low Premium and High Coverage:The farmer share of premium is very low and balance premium will be paid by the Government. Coverage of full Sum Insured is available to the farmers against specified crop losses.
-
Significant Use of Technology:Mobile Technology using Smart phones, Remote sensing using satellite data, Aerial study using Drone and GPS technologies will be used to capture and upload data to expedite the crop loss to reduce the delays in the claim payment.
-
Government Of India’s National Agriculture Portal:Completely digitized information on notification of areas, crops, schemes for enabling information access to multiple stakeholders and for farmers to avail crop insurance services. – https://www.pmfby.gov.in
-
Implementing Agency (IA): Beneficiary enrolment, awareness generation and claims servicing for the season and Cluster (a combination of Districts) is handled by only one Insurance Company
For more details please click here on the link to visit PMFBY homepage
To know more about the scheme's revised operational guidelines, please click here on the link
To view other important documents including old operational guidelines, pleaseClick HERE
- All farmers including sharecroppers and tenant farmers growing the notified crops in the notified areas are eligible for coverage.
- Farmers should have insurable interest for the notified/insured crops.
- The sum Insured for an individual farmer is equal to the Scale of finance or Notional Average Value (Notional Average Yield {NAY} x Minimum Selling Price {MSP}/ Farm Gate Price) per hectare multiplied by the area of the notified crop proposed by the farmer for insurance, wherein area under cultivation shall always be expressed in hectare.
- The scale of finance is also defined in the state government notification or/ and on National Crop Insurance Portal.
- The Scheme is optional for all farmers those after including who have been sanctioned short-term Seasonal Agricultural Operations (SAO) loans/Kisan Credit Card (KCC) for the notified crops from defined Financial Institutions (FIs).
- Existing loanee farmer wishing to opt-out of the scheme may submit requisite declaration to loan sanctioning bank branch any time during the year but at least seven days prior to the cut-off date for enrolment of farmers as mentioned in the notification of the respective state government for the respective season.
- Any change in crop plan should be brought to the notice of the bank at least 2 days before cut-off-date as mentioned in the above point.
- Insurance Proposals are accepted only up to the cut-off date declared by the State Level Coordination Committee on Crop Insurance (SLCCCI).
- Insurance by Non Loanee farmers can be purchased through banks / Common Service Centres / National Agriculture Portal or the authorized intermediaries of the Insurance company.
In addition to the Shortfall in crop yield loss on Area Approach basis, the scheme also covers,
- Basic Cover:Covers the risk of loss of yield to standing crop (sowing to harvesting) on an area-based approach basis due to non-preventable risks like drought, dry spells, flood, inundation, wide spread pest and disease attack, landslides, natural fire due to lightening, storm, hailstorm, and cyclone.
- Add-On Coverage:Apart from the mandatory basic cover, following add-on covers may be opted based on the need of the specific crop/area in a State to cover the following stages of the crop and risks leading to crop loss.
- Prevented Sowing/Planting/Germination Risk :Insured area is prevented from sowing/ planting/germination due to deficit rainfall or adverse seasonal/climatic conditions.
- 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 the normal yield. Provides immediate relief to insured farmers in case of occurrence of such risks.
- Post-Harvest Losses:Coverage is available only up to a maximum period of two weeks from harvesting, for those crops which are required to be dried in cut and spread / small bundled condition depending on requirement of the crops in that area, in the field after harvesting against specific perils of hailstorm, cyclone, cyclonic rains and unseasonal rains.
- 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.
- Crop loss due to attack by wild animals:Crop loss due to the attack by wild animals wherever the risk is perceived to be substantial and is identifiable.The add-on coverage will be optional for the farmers and applicable notional premium will be borne by the farmer
- Loss/damage for localized calamities and post-harvest losses will be assessed at the level of the individual insured farm and hence lodging of loss intimation within 72 hours of occurrence by the farmer/designated agencies is essential. For remaining risks, losses are due to widespread calamities, hence lodging of intimation for claims by insured farmers / designated agencies for such wide-spread calamities is not essential.
- Details like survey number, insured crop and area affected details, Application No, News Paper Cutting and any other available evidence to substantiate losses shall be provided as per the requirement.
For any losses arising out of the above mentioned events, the farmer should intimate insurance company within 72 hours of the occurrence.
Details like survey number, insured crop and area affected details, Application No, News Paper Cuttng and any other available evidence to substantiate losses.
Losses arising out of war and nuclear risks, malicious damage and other preventable risks shall be excluded.
- Enrolments made within the stipulated timelines decided as per state government notification will only be considered for Insurance
- Only crops notified by State Government are covered under the scheme.
- Sum Insured is calculated based on the Scale of Finance declared by the SLBC / State Government.
- Please click here click and select Insurance premium calculator to know Sum Insured, Farmer share of premium.
Premium Rates
| Season |
Crops |
premium Payable by farmers(% of sum insured)* |
| Kharif |
All food grain and oil seed crops |
2.0 % of SI or Actuarial rate, whichever is less |
| Rabi |
All food grain and oil seed crops |
1.5 % of SI or Actuarial rate, whichever is less |
| Kharif and Rabi |
Annual commercial/Annual horticultural crops |
5.0 % of SI or Actuarial rate, whichever is less |
*Only for notified crops in that particular area. Difference between actuarial premium rate and Maximum Premium Payable by farmers would be subsidized by State and Central Govt. in equal proportions.
Procedure
Non- Loanee Farmers:
- Non-loanee farmer's can enrol through anyone of the channels given below.
- The non-loanee farmers are required to submit 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.
- In case of sharecroppers/tenant farmers and the same should be defined by the respective States in the notification itself.
Loanee Farmers:
- The coverage of eligible loanee farmers should be carried out by ICs through the banks/FIs.The documents are needed to be submitted to the Bank itself. Enrolment happens only through your respective banks.
- The scheme is optional for all farmers including farmers who have been sanctioned short-term Seasonal Agricultural Operations (SAO) loans/Kisan Credit Card (KCC) for the notified crops from defined FIs (hereinafter referred to as Loanee farmers).
Channels of Enrollment
-
Shortfall in Yield Based Claims:
- State government conducts required number of Crop Cutting Experiments (CCEs) at each notified insurance unit and the yield data will be shared with insurance company within the prescribed time limit. The claim calculation is done based on this data.
- The Threshold Yield (TY) shall be the benchmark yield at which Insurance protection shall be given to all the insured farmers at each Insurance Unit
- Threshold Yield of the notified crop (TY) = Historical average yield of best five out of last seven years years of that season x Indemnity level of the notified crop.
- Shortfall in Yield Claim = (Threshold Yield-Actual Yield) / Threshold Yield X Sum Insured
-
Prevented sowing / Planting / Germination Risk:
- State Government shall declare a notified insurance unit as having suffered prevented sowing/ planting condition with approximate areas in percentage of the insurance unit. Prevented Sowing/ planting/ germination risk will be eligible at the early stage of sowing which is up to 30 days from the start of sowing but no later than 15 days from cut-off date for enrolment
- Reports on Rainfall data or other Weather data, satellite imagery and remote sensing indices, crop condition and area sown data etc. shall be used as proxy indicator.
- Claim paid under this cover would be 25% of the sum insured and the Insurance cover will be terminated.
-
Loss to standing crop from sowing to harvesting:
- Covers the losses due to adverse seasonal conditions during the crop season viz. floods, prolonged dry spells, severe drought etc.
- Expected yield during the season is likely to be less than 50 % of normal yield.
- Maximum claim paid would be 25% of the likely claim, subject to adjustment against final claims based on yield assessment data arrived through crop cutting experiments.
-
Post-Harvest losses:
- Intimation to be given by the insured farmer within 72 hours, either to insurance company, concerned bank, local agriculture department, Govt. /district officials or through toll free number.
- Provision has been made for loss assessment in case of occurrence of hailstorm, cyclone, cyclonic rains and unseasonal rains resulting in damage to harvested crop lying in the field in ‘cut and spread’/ small bundled condition depending on nature of the crop in that area kept solely to dry up to a maximum period of two weeks (14 days) from harvesting.
-
Losses due to localized calamities:
- Intimation to be given by the insured farmer within 72 hours, either to insurance company, concerned bank, local agriculture department, Govt. /district officials or through toll free number.
- Rainfall data/ hailstorm/ landslide/ lightening (natural fire) incidences supported by media reports in the local media or reports of the agriculture/ revenue department supported by media reports and other evidences shall be used as proxy indicator
Rainfall data supported by media reports in the local media or reports of the agriculture/ revenue department supported by media reports and other evidences shall be used as proxy indicator.
Intimation to be given by the insured farmer within 72 hours, either to insurance company, concerned bank, local agriculture department, Govt. /district officials or through toll free number.
Claim details can be viewed by clicking here.
Q1: What is Insurance ?
- Insurance is a tool to help compensate an individual or business for unexpected losses that might otherwise cause a financial disaster. It is a process where, the losses of a few are shared by the contributions of many.
Q2: 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.
Q3. What is PMFBY ? ?
- Pradhan Mantri Fasal Bima Yojana (PMFBY) is a scheme launched by Govt of India to provide support for Famers from losses occurring due to unforeseen and unfavourable vagaries of nature.
Q4. What are Sum Insured / Coverage Limit ?
- Sum Insured per hectare for both loanee and non-loanee farmers will be same and equal to the Scale of Finance as decided by the District Level Technical Committee, and would be pre-declared by SLCCCI and notified.
- The sum Insured for an individual farmer is equal to the Scale of finance or Notional Average Value (Notional Average Yield {NAY} x Minimum Selling Price {MSP}/ Farm Gate Price) per hectare multiplied by the area of the notified crop proposed by the farmer for insurance, wherein area under cultivation shall always be expressed in hectare.
- The scale of finance is also defined in the state government notification or/ and on National Crop Insurance Portal.
- Sum insured for irrigated and un-irrigated areas may be separate.
Q5. Where can I find more details about PMFBY ?
- For detailed coverage, exclusions and operational modalities, please read
Operational Guidelines of Pradhan Mantri Fasal Bima Yojana issued by Government of India.
- For previous Operational guidelines
click here
Q6. What is the assessment of yield claim done ?
- Yeild losses claims will be calculated based on the formulae,
[(Threshold yield – Actual Yield) / Threshold Yield ] X Sum Insured
Q7. What are the premium rates charged under this scheme ?
| Season |
Crops |
premium Payable by farmers(% of sum insured)* |
| Kharif |
All food grain and oil seed crops |
2.0 % of SI or Actuarial rate, whichever is less |
| Rabi |
All food grain and oil seed crops |
1.5 % of SI or Actuarial rate, whichever is less |
| Kharif and Rabi |
Annual commercial/Annual horticultural crops |
5.0 % of SI or Actuarial rate, whichever is less |
Q8. How is prevented sowing claim applicable for farmers?
- State Govt. would declare a notified insurance unit as having suffered prevented sowing/ planting condition.
- Reports on Weather data, satellite imagery and crop condition and area sown data etc. shall be used as proxy indicator.
- Claim paid under this cover would be 25% of the sum insured and the Insurance cover will be terminated.
Q9. Are all crops covered under this scheme ?
- Only the notified crops will be covered under the scheme.
Q10. What is the farmer eligibility to be covered under PMFBY ?
- All farmers including sharecroppers and tenant farmers growing the notified crops in the notified areas are eligible for coverage.
- Farmers should have insurable interest for the notified/insured crops.
Q11.Is there any timelines for enrollment for PMFBY?
- Strict cutoff dates are followed under PMFBY for enrolment. Only the proposals received before the cutoff date are covered under the policy.
Q12. What is sum insured limit for individual farmer ?
- Sum Insured = Scale of Finance of the notified crop x Area of the notified crop proposed for insurance.
Q13. What is the collection process of proposal and premium from loanee farmers ?
- Farmers need to submit the details to the respective banks.
- Premium will be auto debited by the banks from the farmer account prior to the cutoff date.
Q14. What is the collection process of proposal and premium from non loanee farmers ?
- Non Loanee farmers can approach any of the Banks, CSCs, or PMFBY website for enrolment.
- They need to submit the necessary documents like, 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 Govt.
- In case of sharecroppers/tenant farmers and the same should be defined by the respective States in the notification itself. The premium has to be paid through any of these channels.
- Both submission of documents and premium payment must happen before the cutoff date.