Pradhan Mantri Fasal Bima Yojana (PMFBY)

Introduction

Pradhan Mantri Fasal Bima Yojana is an insurance service for farmers that was lainched by Prime Minister Narendra Modi on 18 February 2016. The scheme was formulated in line with One Nation–One Scheme theme by replacing earlier two schemes National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS) by incorporating their best features and removing their inherent drawbacks (shortcomings).

The aim of the scheme is to reduce the premium burden on farmers and ensure early settlement of crop assurance claim for the full insured sum.

Objectives of PMFBY

• Providing insurance coverage to farmers and giving them financial support in the event of failure of any of the notified crop as a result of natural calamities, pests and diseases.
• To stabilise their income for ensuring their continuance in farming.
• For encouraging armers to adopt innovative and modern practices of agriculture.
• To ensure flow of credit to the agriculture sector.

Agency of implementation

PMFBY is implemented through a multi-agency framework by selected insurance companies under the overall guidance and control of

1. Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW)
2. Ministry Of Agriculture And Farmers Welfare (MoA&FW)
3. Government of India
4. Commercial Banks
5. Co-operative Banks
6. Regional Rural Banks and their regulatory bodies
7. Government Departments such as:
   • Agriculture
   • Co-operation
   • Horticulture
   • Statistics
   • Revenue
   • Information/Science and Technology
   • Panchayati Raj

Coverage of Risks under PMFBY

• Comprehensive risk insurance is provided to cover yield losses due to non-preventable risks, such as :
  • Natural Fire and Lightning,
  • Storm, Hailstorm,
  • Cyclone, Typhoon,
  • Tempest, Hurricane,
  • Tornado.
  • Risks due to Flood,
  • Inundation and Landslide,
  • Drought, Dry spells,
  • Pests/ Diseases also will be covered
• In post-harvest losses, coverage will be available up to a maximum period of 14 days from harvesting for those crops which are kept in "cut & spread" condition to dry in the field.
• Areas where farmers are prevented from sowing/planting the insured crop due to adverse weather conditions, shall be eligible for indemnity claims upto a maximum of 25 per cent of the sum-insured.

Risks and Losses not to be covered under PMFBY

• War & kindred perils,
• malicious damage,
• nuclear risks,
• riots,
• theft, act of enmity,
• grazed and/or destroyed by domestic and/or wild animals,
• In case of Post–Harvest losses the harvested crop bundled and heaped at a place before threshing, other preventable risks.

Eligibility Criteria :

• All farmers growing notified crops in a notified area during the season who have insurable interest in the crop are eligible.
• Compulsory Coverage : Farmers in the notified area who possess a Crop Loan account/KCC account(called as Loanee Farmers) to whom credit limit is sanctioned/renewed for the notified crop during the crop season.
• Voluntary Coverage : It may be obtained by all farmers not covered in Compulsory Coverage, including Crop KCC/Crop Loan Account holders whose credit limit is not renewed.

How to apply :

• To apply for crop insurance, farmers can visit the website pmfby.gov.in

Rate of Insurance Charges

Contact details: