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Pradhan Mantri Fasal Bima Yojana

This topic provides information about Pradhan Mantri Fasal Bima Yojana.

The new Crop Insurance Scheme is in line with One Nation – One Scheme theme.  It incorporates the best features of all previous schemes and at the same time, all previous shortcomings / weaknesses have been removed. The PMFBY will replace the existing two schemes National Agricultural Insurance Scheme as well as the Modified NAIS.


Objectives

  1. To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests & diseases.
  2. To stabilise the income of farmers to ensure their continuance in farming.
  3. To encourage farmers to adopt innovative and modern agricultural practices.
  4. To ensure flow of credit to the agriculture sector.

Highlights of the scheme

  • There will be a uniform premium of only 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops. In case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%. The premium rates to be paid by farmers are very low and balance premium will be paid by the Government to provide full insured amount to the farmers against crop loss on account of natural calamities.
  • There is no upper limit on Government subsidy. Even if balance premium is 90%, it will be borne by the Government.
  • Earlier, there was a provision of capping the premium rate which resulted in low claims being paid to farmers. This capping was done to limit Government outgo on the premium subsidy. This capping has now been removed and farmers will get claim against full sum insured without any reduction.
  • The use of technology will be encouraged to a great extent. Smart phones will be used to capture and upload data of crop cutting to reduce the delays in claim payment to farmers. Remote sensing will be used to reduce the number of crop cutting experiments.
  • PMFBY is a replacement scheme of  NAIS / MNAIS, there will be exemption from Service Tax liability of all the services involved in the implementation of the scheme. It is estimated that the new scheme will ensure about 75-80 per cent of subsidy for the farmers in insurance premium.

Farmers to be covered

All farmers growing notified crops in a notified area during the season who have insurable interest in the crop are eligible.

Compulsory coverage : The enrolment under the scheme, subject to possession of insurable interest on the cultivation of the notified crop in the notified area, shall be compulsory for following categories of farmers:

  • 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. and
  • Such other farmers whom the Government may decide to include from time to time.
Voluntary coverage : Voluntary coverage may be obtained by all farmers not covered above, including Crop KCC/Crop Loan Account holders whose credit limit is not renewed.

Risks covered under the scheme

  • Yield Losses (standing crops, on notified area basis). 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 cases where majority of the insured farmers of a notified area, having intent to sow/plant and incurred expenditure for the purpose, 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.
  • 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.
  • For certain localized problems, Loss / damage resulting from occurrence of identified localized risks like hailstorm, landslide, and Inundation affecting isolated farms in the notified area would also be covered.

Unit of Insurance

The Scheme shall be implemented on an ‘Area Approach basis’ i.e., Defined Areas for each notified crop for widespread calamities with the assumption that all the insured farmers, in a Unit of Insurance, to be defined as "Notified Area‟ for a crop, face similar risk exposures, incur to a large extent, identical cost of production per hectare, earn comparable farm income per hectare, and experience similar extent of crop loss due to the operation of an insured peril, in the notified area.

Defined Area (i.e., unit area of insurance) is Village/Village Panchayat level by whatsoever name these areas may be called for major crops and for other crops it may be a unit of size above the level of Village/Village Panchayat. In due course of time, the Unit of Insurance can be a Geo-Fenced/Geo-mapped region having homogenous Risk Profile for the notified crop.

For Risks of Localised calamities and Post-Harvest losses on account of defined peril, the Unit of Insurance for loss assessment shall be the affected insured field of the individual farmer.

Calendar of activity

ActivityKharifRabi
Loaning period (loan sanctioned) for Loanee farmers covered on Compulsory basis. April to July October to December
Cut-off date for receipt of Proposals of farmers (loanee & non-loanee). 31 July 31st December
Cut-off date for receipt of yield data Within a month from final harvest Within a month from final harvest

Comparison with previous schemes

Sl.No

Feature

NAIS

[1999]

MNAIS

[2010]

PM Crop Insurance Scheme

1

Premium rate

Low

High

Lower than even NAIS (Govt to contribute 5 times that of farmer)

2

One Season – One Premium

Yes

No

Yes

3

Insurance Amount cover

Full

Capped

Full

4

On Account Payment

No

Yes

Yes

5

Localised Risk coverage

No

Hail storm, Land slide Hail storm, Land slide, Inundation

6

Post Harvest Losses coverage

No

Coastal areas - for cyclonic rain

All India – for cyclonic + unseasonal rain

7

Prevented Sowing coverage

No

Yes

Yes

8

Use of Technology (for quicker settlement of claims)

No

Intended

Mandatory

9

Awareness

No

No

Yes (target to double coverage to 50%)

For complete information about the scheme, click here.

Source : Ministry of Agriculture and Farmers Welfare, Government of India

3.42134831461
Vivek Singh baghel Oct 16, 2017 08:56 PM

Dear sir
Please suggest me I have 90% crop is destroyed due to water problem...in rabi fasal..and also deduct fasal bima ammount.....please suggest me for how to I can claim of fasal bima claim...please reply as soon as possible.

Bhyrasiddesha k s Oct 16, 2017 12:27 PM

sir we took 250000 kcc loan and we not applied for fasal bhima yojan so could we elligiable for insurance

Ravinder Sep 11, 2017 09:31 PM

Sir
In our village 60%crop has destroyed due to rog
Mainely cotton. Can we get claim under pmfby

Ganesh ram pharroda Aug 25, 2017 05:54 PM

I have taken kcc loan Rs 120000 (for first year) on 20 bigha14 biswa jamin. Bank has been deducated Rs 1105.20 two days ago for pardhan mantri fasal bima yojna. Sir, is it carrect amount for insurance and for what amount of bima

S. N. Londhe Aug 20, 2017 12:17 PM

Is it the condition of K C C renewal date for fasal bima yojna..??

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