The Pradhan Mantri Fasal Bima Yojana (PMFBY) is an affordable crop insurance scheme launched by the Union Government in 2016 to cover the risks of natural calamities. With the help of this scheme, financial assistance is provided to the affected farmers to reduce the loss of their crops due to natural calamities.
This scheme has replaced the two previous schemes ‘National Agricultural Insurance Scheme (NAIS)’ and ‘Modified National Agricultural Insurance Scheme (MNAIS)’ respectively, one of the reasons being that the installments of the crop insurance scheme were very low and the earlier scheme had capping on government subsidy which has now been removed. So in the present scheme the farmer will get the full amount claimed without any shortfall.
The Government of India plans to spend Rs 8,800 crore on this scheme. Keeping farmers of every level in mind, crop insurance premiums are kept very low, which farmers can easily afford.
Farmers have to pay only 2% premium for kharif crop and 1.5% premium for rabi crop. The scheme provides protection not only for Kharif and Rabi crops but also for commercial and horticultural crops. Farmers have to pay 5% premium (installment) for commercial and horticultural crops. All these reasons have made the scheme very popular since the first year of its inception. According to the last report of August 2021, more than 6 crore farmers have taken this insurance.
But keep in mind that Pradhan Mantri Fasal Bima Yojana provides coverage only in case of natural calamities like hailstorm, drought, famine etc. In case of crop damage due to any other reason, the sum assured will not be available.
Through this insurance it has been possible to reduce the amount of risk in crop cultivation to a great extent. Farmers are encouraged to farm due to less risk and the number of farmer suicides due to droughts and floods has also decreased and as a result India’s total productivity has increased.
Objectives of Pradhan Mantri Crop Bima Yojana
The main objectives of this scheme are described below:
- One of the main objectives of the Crop Bima Yojana is to provide financial assistance to farmers affected by natural calamities.
- To stabilize the income of farmers by compensating them for losses as much as possible and to encourage them in agriculture.
- Helping farmers adopt modern technology and innovative farming practices.
- The scheme has largely protected farmers from production risks and has succeeded in maintaining crop diversity and increasing competitiveness.
Pradhan Mantri Fasal Bima Scheme Details
| Scheme Name | Pradhan Mantri Fasal Bima Scheme |
| Date of commencement of scheme | 18th August 2016 |
| Responsible Ministry | Ministry of Agriculture and Farmers Welfare |
| Purpose | Providing financial assistance to farmers to reduce crop losses in natural calamities |
| Maximum Government Subsidy | There is no ceiling on government subsidy |
| Official website | https://pmfby.gov.in/ |
Features of Pradhan Mantri Fasal Bima Yojana
The features of this scheme are mentioned below:
- All types of crops like rabi, kharif, commercial and horticultural crops are covered under this insurance.
- For the benefit of the farmers the insurance premium (installment) has been kept very low so that farmers of all strata can easily avail crop insurance.
- Only 1.5% premium has to be paid for rabi crops like wheat, barley, gram, lentil, mustard etc.
- 2% premium to be paid in case of Kharif crops like paddy or rice, maize, jowar, millet, sugarcane etc.
- A premium of 5% per annum has to be paid for commercial and horticultural crops.
Risk coverage of Pradhan Mantri Fasal Bima Yojana
Check out what types of perils you get insurance coverage under this plan:
Basic Cover:
The basic cover of this scheme covers the risk of loss from sowing to harvesting of permanent crops. This insurance covers the risk of crop loss due to uncontrollable natural calamities such as flood, drought, inundation, water logging, drought, pest or disease attack, landslide, storm, lightning, cyclone, hailstorm or natural fire like wildfire. In case of such extensive loss the loss is covered on an area wise basis.
Risk of Inhibited Sowing/Sprouting/Planting:
If sowing or germination or planting is prevented due to deficiency of rainfall or adverse climatic or seasonal conditions in the insured area, the insured crop will be eligible for compensation claim.
Mid-Season Odds:
In case of crop loss due to adverse seasonal conditions such as prolonged dry spell, flood or severe drought etc. the yield is less than 50% of the normal yield, immediate relief is provided to the insured farmers.
Post-harvest damage:
Post-harvest loss coverage is available under Pradhan Mantri Fasal Bima Yojana. If the crop is dried or cut as required or in small bundles in the field within two weeks of harvesting and any calamity like cyclone, hailstorm or unseasonal rain occurs during that time, the farmers can claim the insurance. For all these tasks the project uses advanced technology so that crop damage can be assessed quickly and accurately and farmers get compensation quickly.
Local disasters:
Disasters like hailstorm, floods and land slides will be considered as local disasters. In the case of old schemes, if the farmer’s field was flooded, the amount of claim received by the farmer depended on the unit of insurance (total loss in a village or group of villages). Due to this, many times the farmers did not get the claimed amount even though there was damage to the fields located on the banks of the river or low lands. Pradhan Mantri Fasal Bima Yojana has changed this policy and treating it as a localized loss, only the affected farmers will be surveyed and their claim amount will be paid.
General Exclusions:
This insurance is not applicable in case of loss of crop due to other than natural causes like loss due to any pollution or war loss or loss due to any kind of nuclear hazard and other preventable hazards are excluded from this insurance cover.
Note in this regard that loss due to local calamity and post-harvest loss will be assessed at the insured’s own farm level, hence submission of loss information by farmers or designated agencies is mandatory. Residual risks or those which are wound up due to extensive catastrophes, such extensive catastrophes are not required to inform the policyholder of the situation. In that case the claims will be calculated based on the average yield submitted by the District Level Joint Committee (DLJC) and the concerned State Government.
Damage Claim Procedure in PMFBY
There are two types of situations where damages can be claimed – 1) Widespread disaster and 2) Local disaster.
In case of widespread disaster or extensive erosion damage, work is done on ‘Area Approach’ basis. In that case, the government makes a unit with several villages and sets the standards for disposal.
On the other hand, in case of local calamity, the situation must be reported within 72 hours by first contacting Fosal Bima App or central toll-free number through mobile application. Alternatively, you can give the information directly to the insurance company or through its dedicated toll-free number or to the concerned bank or local agriculture department government/district officials.
Necessary Documents of Pradhan Mantri Crop Bima Yojana
The documents required for applying for this insurance are mentioned below:
- Farmer’s Land Deed
- Farmer Identity Card (Aadhaar Card, Ration Card, PAN Card, Voter Card)
- Farmer Address Proof (Voter Card)
- Bank Account Details (Bank Name, Branch, Account Number)
- The date on which the farmer started sowing the crop
- Application Form
Pradhan Mantri Fasal Bima Yojana form filled
PMFBY can be applied both online and offline. The online application process is described below:
- To apply online you need to go to the official site of PMFBY and click on ‘Farmer’s Corner’ or click directly to get the form link Pradhan Mantri Fasal Bima Yojana Form.
- You have to fill the ‘Register for New Farmer User’ form mentioning the farmer details, residential details, farmer ID and account details.
- After filling all the information, a captcha will appear below, after clicking on ‘Create User’ below, the form will be submitted and the online registration process will be completed.
- After your new farmer user registration you can apply for Pradhan Mantri Fasal Bima Yojana and for that you can login from ‘Farmer Corner’ or ‘CSC Login’ from the top menu.
- After ‘sign in’ with your ID and password you have to select the state and which year and type of crop (Kharif/Rabi) along with the name of the scheme and submit.
- Then click on ‘Application’ to come to the ‘CSC Application’ page where you will get all the information related to the application.
- For making new application you have to click on ‘Application Form’.
- The work will be completed only after you fill the bank details, farmer details and crop details in the application form respectively and pay the insurance application amount through ‘Make Payment’.
The offline application process for PMFBY is as follows:
- Farmers have to go to the insurance company and fill the ‘Crop Insurance Scheme’ application form.
- The application form should be filled and submitted along with the required documents.
- An application reference number will be given to verify the status of the application.
Pradhan Mantri Fasal Bima Yojana Mobile App
Pradhan Mantri Fasal Bima Yojana mobile app is called ‘Crop Insurance’. You can easily get new applications, insurance premium information, crop damage claims etc. through this app.
The process of downloading the Crop Insurance app is described below:
- You need to go to the ‘Play Store’ of the mobile.
- Go to the above search and type “Crop Insurance” or click directly on Crop Insurance App.
- You will get all the information related to insurance very easily by clicking on Install.
Pradhan Mantri Fasal Bima Scheme related Queries (FAQs):
Which crops will come under PMFBY?
Almost all types of crops (Rabi, Kharif, commercial and horticultural crops) are covered under this insurance scheme. 2% premium to be paid for Kharif crops (paddy or rice, maize, jowar, millet, sugarcane etc.). 1.5% premium to be paid for rabi crops (wheat, barley, gram, lentil, mustard etc.) and 5% annual premium for commercial and horticultural crops.
What is the limit of Pradhan Mantri Fasal Bima Scheme?
There is no ceiling on the government subsidy of this scheme. The policyholder has to pay a small amount of premium and the balance premium is 90% which is borne by the government.
How much is the premium in PMFBY?
Keeping in mind the benefits of all farmers in this scheme, the amount of premium has been kept very low. 2% for kharif crops, 1.5% for rabi crops and 5% for annual commercial and horticultural crops.
What is the insurance claim process under Pradhan Mantri Fasal Bima Yojana?
In case of localized calamity, the insured farmer should report the loss immediately within 72 hours of the calamity by contacting the Crop Insurance app or the central toll-free number.
What is the time period for claim settlement in PMFBY?
Insurance claims under PMFBY are generally paid within two months of the end of harvest and within one month of notification in case of non-sowing, mid-season adversity and risk of post-harvest losses.
