Pradhan Mantri Fasal Bima Yojana (PMFBY)

Agriculture is the backbone of India, providing livelihood to millions of farmers and playing a crucial role in the nation’s economy. However, farming is fraught with risks, from unpredictable weather patterns to pest infestations and diseases, which can lead to significant crop losses. To mitigate these risks and provide financial support to farmers, the Government of India launched the Pradhan Mantri Fasal Bima Yojana (PMFBY). This flagship scheme aims to offer comprehensive insurance coverage to farmers, ensuring the stability of their income and promoting sustainable agricultural practices.

Objectives of Pradhan Mantri Fasal Bima Yojana

The Pradhan Mantri Fasal Bima Yojana operates on the principle of “One Nation, One Crop, One Premium,” ensuring uniformity in insurance premiums across the country. The primary objectives of PMFBY are:

• To provide insurance coverage and financial support to farmers in the event of crop failure due to natural calamities, pests, and diseases.
• To stabilize the income of farmers, ensuring they continue farming even in adverse conditions.
• To encourage farmers to adopt innovative and modern agricultural practices.
• To ensure the flow of credit to the agriculture sector, making it easier for farmers to access loans and other financial services.

Implementation Agency

The Pradhan Mantri Fasal Bima Yojana is implemented through a multi-agency framework involving selected insurance companies. The scheme operates under the overall guidance and control of the Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW), Ministry of Agriculture & Farmers Welfare (MoA&FW), Government of India (GOI), and the respective State Governments. Various other agencies, including Financial Institutions like Commercial Banks, Co-operative Banks, Regional Rural Banks, and their regulatory bodies, as well as Government Departments such as Agriculture, Horticulture, Statistics, Revenue, Information/Science & Technology, and Panchayati Raj, also play a crucial role in the implementation of the scheme.

Notified Area

A Notified Area is the unit of insurance decided by the State Government for notifying a crop during a season. This area is crucial for determining the insurance coverage and calculating the premium and indemnity for the insured crops.

Risks Covered Under PMFBY

The Pradhan Mantri Fasal Bima Yojana provides comprehensive risk insurance to cover yield losses due to non-preventable risks. These risks include:

• Natural Fire and Lightning
• Storms, Hailstorms, Cyclones, Typhoons, Tempests, Hurricanes, Tornados, etc.
• Flood, Inundation, and Landslide
• Drought and Dry spells
• Pests and Diseases

In addition to yield losses, PMFBY also covers the following:

Prevented Sowing: In cases where the majority of insured farmers in a notified area are unable to sow or plant due to adverse weather conditions, they are eligible for indemnity claims of up to 25% of the sum insured.

Post-Harvest Losses: Coverage is available for up to 14 days from harvesting for crops kept in “cut and spread” condition to dry in the field, against specific perils like cyclone/cyclonic rains and unseasonal rains.

Localized Calamities: Loss or damage resulting from localized risks such as hailstorm, landslide, and inundation affecting isolated farms.

Premium Rate :

S. No.	Season	Crops	Maximum Insurance charges payable by the farmer (% of Sum Insured)
1	Kharif	Food & Oilseeds crops (all cereals, millets, & oilseeds, pulses)	2.0% of SI or Actuarial rate, whichever is less
2	Rabi	Food & Oilseeds crops (all cereals, millets, & oilseeds, pulses)	1.5% of SI or Actuarial rate, whichever is less
3	Kharif & Rabi	Annual Commercial / Annual Horticultural crops	5% of SI or Actuarial rate, whichever is less

Eligibility Criteria

To benefit from the Pradhan Mantri Fasal Bima Yojana, farmers must meet the following eligibility criteria:

• The farmer must be a cultivator or sharecropper on the insured land.
• Farmers must have a valid and authenticated land ownership certificate or a valid land tenancy agreement.
• The farmer must apply for insurance coverage within the prescribed time frame, generally within two weeks of the start of the sowing season.
• Farmers must not have received any compensation for the same crop loss from any other source.
• The farmer should have a valid bank account and provide bank account details along with valid identity proof at the time of enrollment.
• All farmers growing notified crops in a notified area during the season who have an insurable interest in the crop are eligible.

Exclusions

Certain risks and losses are excluded from the coverage of Pradhan Mantri Fasal Bima Yojana. These include:

• War and kindred perils, nuclear risks, riots, and malicious damage.
• Theft, act of enmity, and destruction by domestic or wild animals.
• Preventable risks and losses due to the harvested crop being bundled and heaped at a place before threshing.

Application Process

Farmers can apply for the Pradhan Mantri Fasal Bima Yojana online through the official portal. Here are the steps to apply:

1. Visit the official PMFBY portal.
2. Click on the “Farmer Corner” section.
3. If you do not have an account on the portal, click on “Guest Farmer.” Fill in all the required details and submit the form to create an account.
4. Log in to your account and fill out the insurance scheme form, providing the necessary details.
5. Submit the form to complete the application process.

How to Claim?

In the event of crop loss, farmers must file a claim with the insurance company within the prescribed time frame, usually within 72 hours of the loss occurrence. To file a claim, follow these steps:

1. Visit the official portal and click on “Report Crop Loss” or download the PMFBY app and report the crop loss.
2. The claim must be accompanied by supporting documents, such as photographs of the damaged crop and a report from the village-level committee (VLC) or the agriculture department.
3. Submit the claim along with the necessary documents to the insurance company for processing.

Documents Required

Farmers need to provide the following documents to apply for the Pradhan Mantri Fasal Bima Yojana:

• Bank account number.
• Aadhaar card.
• Khasra number of the land.
• Agreement photocopy.
• Ration card.
• Voter ID.
• Driving license.
• Passport-size photograph of the farmer.

Benefits of Pradhan Mantri Fasal Bima Yojana

The Pradhan Mantri Fasal Bima Yojana offers several benefits to farmers:

• Financial Support: Provides financial assistance to farmers in case of crop loss, helping them recover from the financial impact of such losses.
• Income Stabilization: Ensures a stable income for farmers, allowing them to continue farming even in adverse conditions.
• Encourages Modern Practices: Promotes the adoption of modern and innovative agricultural practices, improving overall farm productivity.
• Access to Credit: Facilitates the flow of credit to the agriculture sector, making it easier for farmers to obtain loans and other financial services.

Conclusion

• Provides crucial financial support to farmers in case of crop failure due to natural calamities, pests, and diseases.
• Stabilizes the income of farmers, ensuring they can continue farming despite adverse conditions.
• Encourages the adoption of innovative and modern agricultural techniques, enhancing farm productivity.
• Facilitates easier access to credit for farmers, supporting their financial needs and growth.

The Pradhan Mantri Fasal Bima Yojana is a vital initiative that aims to create a more resilient and sustainable agricultural sector in India, benefiting millions of farmers and contributing to the nation’s food security and rural development.

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