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Pradhan Mantri Fasal Bima Yojana (PMFBY) is a Government of India initiative launched in 2016. The scheme offers coverage to farmers against financial losses they incur due to unforeseen events. The policy covers the loss of crops because of local risks, post-harvest financial loss, loss due to natural disasters, unseasonal rains, pests, crop diseases, and more.

 

The scheme works mainly under the ‘One Nation, One Crop, One Premium’ motto. It primarily aims to provide affordable crop insurance to the farmers of our nation.

Objectives of Pradhan Mantri Fasal Bima Yojana

The PMFBY policy supports sustainable agricultural production. It helps reduce the financial losses the farmers face due to crop failure, further stabilising their incomes. The idea behind this initiative is simple - when the farmers of our nations have a stable income to sustain their family and production, they can invest in better equipment for farming that yields better results for them in the near future. Here are some of the key objectives of the Pradhan Mantri Fasal Bima Yojana: 

  • Financial protection to farmers against loss/damages to their produce.

  • Stable income for farmers to ensure they can sustain their family and farming activities.

  • Encourage farmers to embrace new and modern farming practices.

  • Allow the flow of credit in the agricultural sector.

  • Protect farmers against production risks.

  • Offer affordable crop insurance.

  • Exemption of Goods and Service Tax from the scheme.

Features & Benefits of Pradhan Mantri Fasal Bima Yojana

Uniform Premium Rate

The premium rate for PMFBY is the same for all farmers. We’ve discussed the premium rates in the article further.

High Coverage at a Low Premium Price

As seen above, the farmer’s share in the premium is very low. The government takes care of the remaining amount. This means farmers can avail extensive coverage at a lower premium price.

Use of Technology

Latest technology is used to capture and upload data of the loss/damage to the product, reducing the delay in claim settlements.

Single Management

Enrolment of the beneficiaries, awareness of the scheme, and claim processing is managed by a single insurance company.

On-Account Claim Payments

The scheme provides on-account claim payment to the farmers if their produce faces local losses.

Loss Assessment

In case of adverse weather conditions and unseasonal rains, crop loss is assessed on an individual plot basis.

Eligibility Criteria for Pradhan Mantri Fasal Bima Yojana

The PMFBY provides crop insurance to all farmers voluntarily for the produce recognised by the respective State Governments of the country. The eligibility criteria for the scheme is as follows:

  • Farmers (sharecroppers + tenant farmers) growing recognised crops in the notified areas can enrol for the scheme.

  • Eligible farmers should have an insurable interest in the recognised produce.

  • The non-loanee farmers are liable to submit the land records prevailing in the State - Record of Right (ROR), land possession certificate (LPC), etc. They can also submit supporting contracts, agreement details, or other documents issued by the concerned State Government.

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Premium Rate Paid by Farmers to the Insurance Company

Crop Type

Max Premium Payable by Farmers

Kharif Food & Oilseeds

2% of Sum Insured

Rabi Food & Oilseeds

1.5% of Sum Insured

Annual Commercial & Horticultural Crops

5% of Sum Insured

Enrolment Source for Pradhan Mantri Fasal Bima Yojana

The enrolment source for the PM Fasal Bima scheme depends on whether you are a loanee farmer or non-loanee farmer.

  • For Loanee Farmers: The enrolment source is banks

  • For Non-Loanee Farmers: The enrolment source is banks, communal service centres, National Agriculture Portal, Agriculture department office, or any authorised mediator of the scheme.

Coverage of Pradhan Mantri Fasal Bima Yojana

Sum Insured of PMFBY

The insurance coverage under the scheme is equivalent to the sum insured determined by the Government of India.

Compulsory Coverage


  • Farmers with sanctioned Seasonal Agricultural Operations (SAO) loans from the financial institutes for notified crops.

  • Any changes in the crop plan should be informed to the bank at least two weeks before the cut-off date.

  • Insurance applications are accepted up to the cut-off date determined by the State Level Coordination Committee on Crop Insurance (SLCCCI).

Voluntary Coverage

The scheme is optional for loanee farmers.

Risk Covered

Besides the loss caused to crops, the scheme also covers:

  • Prevented sowing, planting, and germination risk: In case of adverse weather conditions or unseasonal rains, the insured area is prevented from sowing, planting, and germination.

  • Loss of standing crops (from sowing to harvesting): Unforeseen incidents that lead to loss of yield are covered under the scheme.

  • Post-harvest loss: After up to two weeks of harvesting, if there is any loss to the produce, the policy covers the same.

  • Loss due to localised disasters: Loss/damage to the produce due to localised risks such as hailstorms, landslides, cloud burst, animal attacks is covered as well.

Any damage/loss to the notified crops due to the risks mentioned above should be informed to the insurer within 72 hours of its occurrence.

Exclusions of Pradhan Mantri Fasal Bima Yojana

The scheme does not cover loss or damage to crops due to the following reasons.

  • Malicious activities

  • Preventable risks

  • Loss due to war or nuclear risks

How to Self-Register on the PMFBY Portal?

The government has provided a facility for farmers to self-register for the PMFBY scheme. Follow the steps below for a successful PMSBY online registration.

  1. Go to the PMFBY portal https://pmfby.gov.in/.

  2. Click on the ‘Register’ option.

  3. Enter personal and other requested details.

  4. Verify your Aadhaar Card (automatically verified) and Contact number (via OTP verification).

  5. Once the application for PMFBY is submitted, it will be approved/rejected by the upper hierarchy.

  6. The applicant will be notified of the decision via an SMS or email.

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Claim Process for Pradhan Mantri Fasal Bima Yojana

The claim process is based on the risks faced. The following table gives an overview of the same.

 

Claim Process

In case of loss/damage to the yield

  • The concerned State Government conducts Crop Cutting Experiments (CCEs) at each insured area. The yield data is shared with the insurer within the specified period. The claim compensation is calculated based on the data submitted.

  • The Threshold Yield (TY) is the benchmark yield up to which compensation shall be paid.

  • The TY of notified crops = Historical avg. yield for the best five out of the last seven years X Indemnity level.

  • Loss in Produce/Yield = (TY – Actual Yield) / TY X Sum Insured

In case of prevented sowing, planting, and germination risk

  • The concerned State Government informed the affected insured area suffering from prevented sowing or planting risk.

  • Weather data, satellite images and crop condition and area of sowing are used as proxy indicators.

  • Claims paid under this risk are 25% of the sum insured after which the insurance cover is terminated.

In case of loss to standing crops (from sowing to harvesting)

  • Here, the claim is raised against any loss/damage to standing crops due to adverse weather conditions, dry spells, drought damage, etc.

  • Also, the claim can be raised when the expected yield during the season is likely to be less than 50% of the normal yield.

  • The maximum claim compensation paid is up to 25%.

In case of post-harvest loss

The intimation of the claim should be made within 72 hours, either with the insurer or the government.

In case of loss due to localised calamities

  • The intimation of the claim should be made within 72 hours, either with the insurer or the government.

  • Proxy indicators used are weather reports and other related evidence.

Claim intimation in case of any of the above-mentioned losses should be given within the specified period via any of the following ways:

  • Call on the Toll-Free No. 180030024088

  • Reach out to the District Agriculture Office. A representative will connect with you and guide you through the process.

  • Reach out to the concerned banking institute.

The stipulated period for loss assessment and submission of the report is as follows:

  • Appointment of loss assessor within 48 hours after receiving the intimation

  • Loss assessment to be completed within the next 10 days

  • Claim settlement/payment to farmers to be completed in the next 15 days (if the premium payment is clear) from loss assessment report.

Claim intimation in case of any of the above-mentioned losses should be given within the specified period via any of the following ways:

  • Call on the Toll-Free No. 180030024088

  • Reach out to the District Agriculture Office. A representative will connect with you and guide you through the process.

  • Reach out to the concerned banking institute.

 

The stipulated period for loss assessment and submission of the report is as follows:

  • Appointment of loss assessor within 48 hours after receiving the intimation

  • Loss assessment to be completed within the next 10 days

  • Claim settlement/payment to farmers to be completed in the next 15 days (if the premium payment is clear) from loss assessment report.

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FAQs

What is PMFBY?

  • PMFBY is a voluntary crop insurance scheme for all farmers cultivating notified crops in notified areas.

  • It provides financial protection against loss or damage to crops due to various reasons like natural calamities, pests, diseases, and localized disasters.

Who is eligible for PMFBY?

  • All farmers, including loanee and non-loanee farmers, cultivating notified crops in notified areas are eligible for PMFBY.

  • Non-loanee farmers need to submit land records or other supporting documents as proof of their insurable interest in the crop.

What crops are covered under PMFBY?

  • The list of notified crops covered under PMFBY varies depending on the season and the state.

  • Farmers can check the list of notified crops for their specific area on the PMFBY website or by contacting their nearest agriculture department office.

What are the benefits of PMFBY?

  • PMFBY provides financial support to farmers in case of crop losses, helping them to stabilize their income and continue farming.

  • The scheme offers affordable premiums, with a significant portion subsidized by the government.

  • PMFBY uses technology for data collection and claim settlement, ensuring transparency and efficiency.

What are the risks covered under PMFBY?

  • PMFBY covers a wide range of risks, including:

    • Prevented sowing, planting, and germination: If adverse weather conditions prevent farmers from sowing or planting their crops.

    • Loss of standing crops: If crops are damaged due to natural calamities, pests, diseases, or localized disasters.

    • Post-harvest loss: If produce is damaged after harvesting due to unseasonal rains or other factors.

  • However, some risks like war, nuclear incidents, and intentional damage are not covered.

How can farmers enroll in PMFBY?

  • Loanee farmers can enroll in PMFBY through their banks.

  • Non-loanee farmers can enroll through banks, Common Service Centers (CSCs), the National Agriculture Portal, or their local agriculture department office.

How are claims settled under PMFBY?

  • The claim settlement process varies depending on the type of loss.

  • In case of widespread crop losses, crop cutting experiments are conducted to determine the extent of damage.

  • For localized losses, farmers need to inform the insurance company or the government within a specified timeframe.

  • Claims are typically settled within 15 days of the loss assessment report.

What is the deadline for enrolling in PMFBY and paying premiums?

The deadline for enrolment varies depending on the state and season. Farmers should check with their local agriculture department or bank for the specific cut-off date in their area. Premium payment also needs to be completed by the cut-off date.

Can I pay my PMFBY premium in installments?

No, PMFBY premiums are typically due as a one-time payment.

Are there any discounts or benefits for early payment of premiums?

Some states offer early bird discounts for premium payments made before a specified date. Check with your local authorities for details.

What happens if I don't pay my premium on time?

Your insurance coverage might be delayed or even canceled if you miss the premium payment deadline.

Are there any minimum or maximum limits on the sum insured under PMFBY?

Yes, the minimum and maximum sum insured vary depending on the type of crop and location. Contact your bank or local agriculture department for specific limits.

Are there any specific requirements for claiming post-harvest losses?

You need to inform the insurance company or government within 72 hours of any post-harvest damage. Specific documentation, like harvest records and proof of loss, may be required.

What documentation do I need to submit when filing a claim?

The required documents can vary depending on the type of loss. Generally, you will need proof of identity, land records, crop details, and evidence of the loss.

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