PM Fasal Bima Yojana

As part of the One Nation One Crop One Premium initiative, the Pradhan Mantri Fasal Bima Yojana (PMFBY) was launched in 2016 by the Government of India. The Pradhan Mantri Fasal Bima Yojana (PMFBY) seeks to contribute to sustainable agriculture through

• Financial assistance for farmers enduring produce losses due to unforeseeable circumstances.
• Securing the farmers’ incomes to secure their continuation in agriculture.
• Promoting the adoption of innovations and new farming practices by farmers.
• Providing financial support to the agricultural sector to ensure sustainable food production, diversify crops and enhance the industry’s efficiency, and protect farmers from potential risks.

In addition to the National Agricultural Insurance Scheme, the PMFBY will replace the Modified National Agricultural Insurance Scheme.

Benefits of the scheme:

• This scheme protects against crop loss due to natural disasters that are not preventable.
• Uniform premium rates for all farmers.
• The maximum premium paid by farmers will be 2%, 1.5%, and 5%, as outlined below. Premiums over and above will be shared by the Central and State governments.
• The claims will be assessed at an individual farm level and settlement thereof.
• Make the scheme optional for all farmers as opposed to mandatory for loanee farmers.

Premium rates to be paid by farmers under the scheme:

Type of Crop	Max Premium Payable by Farmers ( as % of Sum Insured)
Kharif	2% of the total amount insured or actuarial rate (whichever is less)
Rabi	1.5% of the total amount insured or actuarial rate (whichever is less)
Kharif and Rabi	5% of the total amount insured or actuarial rate (whichever is less)

Farmers to be covered:

Mandatory Coverage: (Earlier to Kharif 2020)

A farmer who has been approved a Seasonal Agricultural Operations (SAO) loan by a Financial Institution (FI) (i.e., loanee farmers) will be compulsorily covered for the notified crop(s). Any decision made by FIs, including PACS, that exempts loanee farmers from compulsory coverage shall be overridden by this provision.

Voluntary Coverage: (Post Kharif 2020)

The program is open to all farmers, including sharecroppers and tenant farmers growing notified crops in a notified area during the growing season. These farmers must have an insurable interest in the crop during the growing season.

Crops to be covered:

• Food crops (Cereals, millets, and pulses)
• Oilseeds
• Annual commercial/Annual horticultural crops

A few perennial horticultural crops with standard yield estimation methodologies can also be piloted for coverage, in addition to perennial crops.

Risks to be covered:

• Preventing planting, sowing, and germinating in affected areas: Affected areas are barred from planting, sowing, and sprouting due to unseasonal rains or harsh weather conditions.
• Damage to standing crops due to unavoidable risks: Unforeseen occurrences leading to crop losses are covered by this policy.
• After-harvest losses: If any damage occurs to the product up to two weeks after harvest, the policy covers the loss.
• Localised calamities: This refers to damage or loss to the production due to localized risks, such as hailstorms, landslides, and cloud bursts.
• Additional coverage for crop damage caused by animals attacking crops.

General exclusions:

• Risks associated with nuclear weapons and war losses
• Malicious damage
• Other avertable risks

How to apply?
The application procedure is listed below:

• Navigate to https://pmfby.gov.in/ and click on register.
• Input your details and proceed with Aadhar Card verification.
• Apply.

A notification will be sent to you regarding the status of the application via SMS.

Using the following calculator, you can determine the premium payable.

How to report loss and claim insurance?
In case of crop losses, farmers can report them via the Crop Insurance App, the CSC Centre, or to the closest agriculture officer within 72 hours of the event. The benefit is then deposited electronically into the bank accounts of eligible farmers.