Pradhan Mantri Fasal Bima Yojana (PMFBY)

What is Pradhan Mantri Fasal Bima Yojana (PMFBY)?

The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a scheme launched in India by the Ministry of Agriculture and Farmers Welfare in New Delhi. The scheme was first implemented during the Kharif 2016 season and has been in effect since then. The National Insurance Company began participating in the PMFBY scheme during the Rabi 2016 season and has covered 8 states and 2 union territories over the past 5 seasons. This includes the seasons of Rabi 2016-17, Kharif and Rabi 2017, and Kharif and Rabi 2018, during which a total of 70,27,637 farmers were covered.

Also Read: Pradhan Mantri Fasal Bima Yojana (PMFBY): Comprehensive Guide to Crop Insurance, Benefits, Eligibility, and Application Process​

Under the PMFBY scheme, farmers are required to pay a premium of Rs. 453 crores, while the state and central governments provide a subsidy of Rs. 1909 crores. This results in a gross premium of Rs. 2362 crores for the 5 seasons combined. Currently, the claims for the Kharif 18 and Rabi 18 seasons are still being processed. However, for the first 3 seasons, a total of Rs. 1804 crores was collected from 35,22,616 farmers, and claims amounting to Rs. 1703 crores were paid out, benefitting 17,66,455 farmers. This means that approximately 50% of the farmers insured under the PMFBY scheme have benefitted from the scheme.

The Ministry of Agriculture and Farmers Welfare in New Delhi has issued revised operational guidelines for the PMFBY scheme, which are binding on all stakeholders involved. These guidelines provide a comprehensive overview of the scheme and can be downloaded from the official website, www.pmfby.gov.in.

There are two schemes under these guidelines:

1. Pradhan Mantri Fasal Bima Yojana (PMFBY)
2. Revised Weather Based Crop Insurance Scheme (RWBCIS)

In this article we will dig deep into the Pradhan Mantri Fasal Bima Yojana (PMFBY).

Key Objectives of Pradhan Mantri Fasal Bima Yojana

The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a scheme launched in India to support sustainable production in the agriculture sector. The main objectives of the PMFBY are:

• Providing financial support to farmers suffering crop loss or damage due to unforeseen events, such as natural disasters, pests, and disease.

• Stabilizing the income of farmers to ensure their continuity in farming, and protecting them from the financial losses that can occur due to crop failure.

• Encouraging farmers to adopt innovative and modern agricultural practices, such as precision farming, crop diversification, and use of technology, to increase productivity and reduce the risk of crop failure.

• Ensuring the flow of credit to the agriculture sector, which will contribute to food security, crop diversification, and enhancing growth and competitiveness of agriculture sector.

• Helping farmers to protect themselves from production risks by providing insurance coverage for their crops. This helps to reduce the burden of debt and increases their ability to invest in their farms and improve their livelihoods.

Overall, the PMFBY aims to support sustainable agricultural production by providing financial support to farmers suffering crop loss, stabilizing the income of farmers, encouraging the adoption of modern agricultural practices, and ensuring the flow of credit to the agriculture sector, which will contribute to food security and crop diversification.

Who can be covered under The Pradhan Mantri Fasal Bima Yojana (PMFBY)?

• Farmers who have been sanctioned Seasonal Agricultural Operations (SAO) loans (Crop Loans) from Financial Institutions (FIs) for the notified crop(s) season would be covered compulsorily under the scheme.
• The scheme is optional for non-loanee farmers, who can choose to opt in or opt out of the scheme.
• Farmers who are availing of crop loan from financial institutions will be mandatorily covered under the scheme
• Farmers who are availing the benefit of the scheme under the National Agricultural Insurance Scheme (NAIS) are mandatorily covered under the PMFBY
• Small and marginal farmers are charged lower premium rates under the PMFBY as compared to other farmers.

Eligibility for the Pradhan Mantri Fasal Bima Yojana (PMFBY)

• To enroll in the Pradhan Mantri Fasal Bima Yojana (PMFBY) scheme, both loanee and non-loanee farmers must be enrolled in the National Crop Insurance Portal (NCIP) which is managed by the Ministry of Agriculture & Farmers welfare, New Delhi.
• Banks who are lending Seasonal Crop Loans to the farmers are responsible for uploading the data of loanee farmers in the NCIP.
• In case of non-loanee farmers, intermediaries, Common Service Centers (CSCs), farmers themselves, and other agencies are responsible for uploading the data in the NCIP, along with uploading four documents which are required for the enrollment process.
• Premium payments for the scheme must be made through National Electronic Funds Transfer (NEFT) method. Offline methods such as Demand Drafts or Cheques are not accepted.
• Applications for enrollment in the scheme can only be made online, offline applications are not accepted.

Crops Covered under Pradhan Mantri Fasal Bima Yojana

The Pradhan Mantri Fasal Bima Yojana (PMFBY) scheme covers a wide range of crops to provide financial support to farmers in case of crop loss or damage due to unforeseen events. The types of crops covered under the scheme are:

• Food crops: This includes cereals, millets, and pulses which are considered as the main staple food for the majority of the Indian population.

• Oilseeds: These are crops that are grown for their oil content, such as soybeans, sunflowers, and groundnuts. These crops are an important source of vegetable oil and protein for human consumption.

• Annual Commercial / Annual Horticultural crops: These are crops that are grown for commercial or horticultural purposes, such as fruits, vegetables, and flowers. These crops are grown for sale and have a shorter lifespan compared to perennial crops.

In addition to these main crops, the PMFBY scheme also includes pilots for coverage of perennial horticultural crops for which standard methodology for yield estimation is available. Perennial horticultural crops are crops that are grown for a longer period of time, such as fruit trees, vineyards, and other long-lived plants. These pilots will help to evaluate the feasibility of providing coverage for these types of crops in the future.

Process to Apply for Pradhan Mantri Fasal Bima Yojana

The process for applying for Pradhan Mantri Fasal Bima Yojana (PMFBY) is as follows:

• Contact the local agriculture department or bank branch to obtain the application form.
• Fill in the necessary details including the type of crop, area of cultivation, and insurance coverage desired.
• Submit the form along with any required documents such as a sowing certificate, to the local agriculture department or bank branch.
• Pay the premium for the insurance coverage.
• The coverage will become effective from the date of enrollment and will be valid for the entire crop season.
• In case of change of crop or any other details, the same should be informed to KCC/ Crop-loan sanctioning bank branch immediately but not later than 2 days prior to cut off date for debit of premium/date of enrolment.
• It is the responsibility of the farmers to provide timely information/claim lodging for damage of crops due to localized calamities and post-harvest losses.
• Also ensure that the insured crop is same as the crop sown.

Note: The process may vary depending on the state government and the rules and regulations set by them. It is advisable to check with the local agriculture department or bank branch for the specific procedures in your area.

Premium Rates for Farmers in Pradhan Mantri Fasal Bima Yojana (PMFBY)

The Pradhan Mantri Fasal Bima Yojana (PMFBY) scheme has established specific premium rates for farmers to be paid to the insurance company for crop coverage. These rates vary based on the type of crop and the season in which it is grown.

1. For food grains, including cereals, pulses, and oilseeds, the rate of premium for the Kharif season is 2%, and for the Rabi season, it is 1.5%.
2. For annual horticulture and commercial crops, the rate of premium is 5%.The premium rates quoted by the insurance company may be higher than the rates mentioned above, in that case, the difference will be paid to the insurance company by the state and the Government of India in the form of premium subsidy. If the premium rate quoted by the insurance company is less than the above rates, no subsidy is payable to the insurance company.

Risk Coverage under the Pradhan Mantri Fasal Bima Yojana (PMFBY)

The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a crop insurance scheme that provides coverage for various stages of crop risks that can lead to crop loss. The following points provide an overview of the risks covered under the PMFBY scheme:

• Prevented Sowing/Planting/Germination Risk: This type of risk refers to when the insured area is prevented from sowing, planting, or germination due to deficit rainfall or adverse seasonal/weather conditions. In such cases, 25% of the sum insured will be paid and the policy will be terminated.

• Standing Crop (Sowing to Harvesting): Comprehensive risk insurance is provided to cover yield losses due to non-preventable risks such as drought, dry spell, flood, inundation, widespread pests and disease attack, landslides, fire due to natural causes, lightening, storm, hailstorm, and cyclone.

• Post-Harvest Losses: Coverage is available only up to a maximum period of two weeks from harvesting, for those crops that are required to be dried in cut and spread or small bundled condition in the field after harvesting against specific perils of hailstorm, cyclone, cyclonic rains, and unseasonal rains.

• Localized Calamities: Loss or damage to notified insured crops resulting from the occurrence of identified localized risks of hailstorm, landslide, inundation, cloud burst, and natural fire due to lightening affecting isolated farms in the notified area.

• Add-on Coverage for Crop Loss Due to Attack by Wild Animals: The states may consider providing add-on coverage for crop loss due to attack by wild animals wherever the risk is perceived to be substantial and is identifiable.

• Other: Losses arising out of war and nuclear risks, malicious damage, and other preventable risks shall be excluded. Additionally, the addition of new risks by the state government other than the ones mentioned above is not permitted.

What is the claim process?

What are the Farmer's Responsibilities in The Pradhan Mantri Fasal Bima Yojana?

FAQs on Pradhan Mantri Fasal Bima Yojana (PMFBY)

Q1: What is the Pradhan Mantri Fasal Bima Yojana (PMFBY)?

A: PMFBY is a government-backed crop insurance scheme in India that provides comprehensive risk coverage for farmers against crop losses due to natural calamities such as drought, dry spell, flood, pest and disease attack, landslides, fire, lightning, storm, hailstorm, and cyclone.

Q2: Who is eligible for PMFBY?

A: All farmers who are cultivating notified crops in the notified areas are eligible to enroll in the PMFBY scheme.

Q3: What types of risks are covered under PMFBY?

A: PMFBY covers a wide range of risks that can lead to crop loss, including prevented sowing, standing crop, post-harvest losses, localized calamities, and wild animal attacks.

Q4: How is the claim amount calculated under PMFBY?

A: The claim amount is calculated based on the sum insured and the extent of crop loss. In case of prevented sowing, 25% of the sum insured is paid. For standing crop, comprehensive risk insurance is provided to cover yield losses.

Q5: How can farmers apply for PMFBY?

A: Farmers can apply for PMFBY through their respective KCC/Crop-loan sanctioning bank branch, or through the National Crop Insurance Portal. They need to submit the required documents and pay the premium to enroll in the scheme.

Q6: How can farmers intimate a claim under PMFBY?

A: Farmers can intimate a claim by lodging a loss information within 72 hours, either directly to the insurance company, concerned bank, local agriculture department Govt. /district officials or through our toll-free number (1800 200 7710) or on National Crop Insurance Portal. Additional 24 hours for agency/department to register with concerned insurance company.

Q7: What are the exclusions under PMFBY?

A: Losses arising out of war and nuclear risks, malicious damage, and other preventable risks are excluded under PMFBY.

Q8: Can farmers change the insured crops under PMFBY?A: Yes, farmers can change the insured crops under PMFBY. However, this change must be informed to KCC/Crop-loan sanctioning bank branch immediately but not later than 2 days prior to cut off date for debit of premium/date of enrolment, and it should be accompanied with sowing certificate.