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 | Benefits of IFFCO-Tokio |
|---|---|
| Harvest Seasons Covered | Kharif & Rabi |
| Prevented Sowing/Planting | Covered |
| Mid-Season Adversity | Covered |
| Localized Calamities | Covered |
| Post-Harvest Losses | Covered |
*As per Annual Audited Financials, FY'2019.
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.
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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).
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.
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:
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:
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
|
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.
The PMFBY crop insurance scheme covers the following crops:
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.
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: -
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.
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