• Food crops (Cereals, Millets and Pulses)
• Oilseeds
• Annual Commercial/Annual Horticulture Crops

• Prevented Sowing/ Planting Risk : When the Insured area is prevented from sowing/ planting due to deficit rainfall or adverse seasonal conditions, claims up to 25% of sum insured are payable to the farmers.
• Standing Crop (Sowing to Harvesting) : Comprehensive risk insurance is provided to cover yield losses due to non- preventable risks (Drought, Dry spells, Flood, Inundation, Pests and Diseases, Landslides, Natural Fire and Lightening, Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane and Tornado).
• Post-Harvest Losses : Coverage is available only up to a maximum period of two weeks from harvesting for those crops which are allowed to dry in cut and spread condition in the field after harvesting against specific perils of cyclone and cyclonic rains and unseasonal rains.
• Localized Calamities : Loss/ damage resulting from occurrence of identified localized risks of hailstorm, landslide, and Inundation affecting isolated farms in the notified area.

• The criteria of selection of implementing agency, notification of crop and other broad features of the scheme are similar to PMFBY.
• Unlike PMFBY where yield base calculation happens here under RWBCIS, extreme weather conditions like excess/ deficit rainfall, high/ low temperature, continuous humidity, etc., which may result in losses to the crops are covered. Claim calculation in case of RWBCIS is based on weather data recorded on weather stations.

All Food & Oilseeds crops, and Annual Commercial/Horticulture Crops, as notified by respective State.

The Actuarial Premium Rate (APR) would be charged under PMFBY/RWBIS by implementing agency. The Rate of Insurance premium payable by the farmer will be given as below:

*If Actuarial Rates goes up by above rates in any state then the Balance premium will be shared by Central Govt & State Govt.

• PMFBY Hindi
• PMFBY Gujarati
• PMFBY Bengali
• PMFBY Kannada

IA shall be done by the concerned State Government for implementation of the scheme in their State. Such selection of IA shall be done from amongst the designated / empanelled companies.

The final selection of IA from amongst the pre-qualified insurance companies shall be done based on the lowest weighted premium quoted by a pre-qualified company for all notified crops within the cluster of districts.

The existing State Level Co-ordination Committee on Crop Insurance (SLCCCI), Sub-Committee to SLCCCI, District Level Monitoring Committee (DLMC) already overseeing the implementation & monitoring of the ongoing crop insurance schemes shall be responsible for proper management of the Scheme. Implementing Agency shall be an active member of SLCCCI and District Level Monitoring Committee (DLMC) of the scheme.

The Scheme shall be implemented on an ‘Area Approach basis’ i.e., Defined Areas (DA) 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 3 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 Localized 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.

The Scheme can cover all the Crops for which past yield data is available and grown during the notified season, in a Notified Area and for which yield estimation at the Notified Area level will be available based on requisite number of Crop Cutting Experiments (CCEs) being a part of the General Crop Estimation Survey (GCES).

The Scheme can cover all the Crops for which past yield data is available and grown during the notified season, in a Notified Area and for which yield estimation at the Notified Area level will be available based on requisite number of Crop Cutting Experiments (CCEs) being a part of the General Crop Estimation Survey (GCES).

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 may be obtained by all farmers as mentioned in above answer, including Crop KCC/Crop Loan Account holders whose credit limit is not renewed.

The scheme covers Risks for the following incidences

a. YIELD LOSSES (standing crops, on notified area basis): Comprehensive risk insurance is provided to cover yield losses due to non-preventable risks, such as

• (i) Natural Fire and Lightning
• (ii) Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, etc.
• (iii) Flood, Inundation and Landslide
• (iv) Drought, Dry spells (v) Pests/ Diseases etc.

b. PREVENTED SOWING (on notified area basis): 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 up to a maximum of 25% of the sum-insured.

c. POST-HARVEST LOSSES (individual farm basis): Coverage is 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 after harvesting, against specific perils of cyclone / cyclonic rains, unseasonal rains throughout the country.p

d. LOCALISED CALAMITIES (individual farm basis): Loss / damage resulting from occurrence of identified localized risks i.e. hailstorm, landslide, and Inundation affecting isolated farms in the notified area

Risks and Losses arising out of following perils shall be excluded:-

War & kindred perils, nuclear risks, riots, malicious damage, theft, act of enmity, grazed and/or destroyed by domestic and/or wild animals, In case of Post–Harvest losses the harvested crop bundled and heaped at a place before threshing, other preventable risks.

In case of Loanee farmers under Compulsory Component, the Sum Insured would be equal to Scale of Finance for that crop as fixed by District Level Technical Committee (DLTC) which may extend up to the value of the threshold yield of the insured crop at the option of insured farmer. Where value of the threshold yield is lower than the Scale of Finance, higher amount shall be the Sum Insured. Multiplying the Notional Threshold Yield with the Minimum Support Price (MSP) of the current year arrives at the value of sum insured. Wherever Current year’s MSP is not available, MSP of previous year shall be adopted. The crops for which, MSP is not declared, farm 6 gate price established by the marketing department / board shall be adopted.

Further, in case of Loanee farmers, the Insurance Charges payable by the farmers shall be financed by loan disbursing office of the Bank, and will be treated as additional component to the Scale of Finance for the purpose of obtaining loan. For farmers covered on voluntary basis the sum-insured is upto the value of Threshold yield i.e threshold yield x (MSP or gate price) of the insured crop.

The Actuarial Premium Rate (APR) would be charged under PMFBY on the basis of Loss Cost (LC) i.e. Claims as % of Sum Insured (SI) observed in case of the notified crop(s) in notified unit area of insurance (whatsoever may be the level of unit area) during the preceding 10 similar crop seasons (Kharif / Rabi) and loading for the expenses towards management including capital cost and insurer’s margin and taking into account non-parametric risks and reduction in insurance unit size etc.

The rate of Insurance Charges payable by the farmer will be as per the following table:

The State/UT Govt. will plan and conduct the requisite number of Crop Cutting Experiments (CCEs) for all notified crops in the notified insurance units in order to assess the crop yield. The State / UT Govt. will maintain single series of Crop Cutting Experiments (CCEs) and resultant Yield estimates, both for Crop Production estimates and Crop Insurance. Crop Cutting Experiments (CCE) shall be undertaken per unit area /per crop, on a sliding scale, as indicated below:

Also a Technical Advisory Committee (TAC) comprising representatives 9 from Indian Agricultural Statistical Research Institute (IASRI), National Sample Survey Organization (NSSO), Ministry of Agriculture & Farmers Welfare (GoI) and implementing agencies shall dispose/decide the issues relating to CCEs and all other technical matters. Inputs from RST/satellite imagery would also be utilized in optimizing the sample size of CCEs.

Once the Yield Data is received from the State/UT Govt. as per the prescribed cut-off dates, claims will be processed, 12 approved and settled by Implementing Agency (IA)

If the ‘Actual Yield’ (AY) per hectare of the insured crop for the defined area [on the basis of requisite number of Crop Cutting Experiments (CCEs)] in the insured season, falls short of the specified threshold yield (TY) Yield’ (RY), all the insured farmers growing that crop in the defined area are deemed to have suffered shortfall in their yield. The PMFBY Scheme seeks to provide protection against such contingency to all insured farmers of an Insurance Unit.

Claim Pay-outs based on Yield losses shall be calculated as per the following formula:

Shortfall in Yield

Claim Payout = _____________ X Sum Insured

Threshold Yield

Where, Shortfall in Yield = (Threshold Yield – Actual Yield)

For Loanee Customer:

For PMFBY coverage opted through Banks, the claim amount along with particulars will be released to the individual Nodal Banks. The Banks at the grass-root level, in turn, shall credit the accounts of the individual farmers and display the particulars of beneficiaries on their notice board. The Banks shall provide individual farmer wise details claim credit details to IA and shall be incorporated in the centralized data repository.

For Non- Loanee Customer:

The claim amount will be released electronically to the individual Insured Bank Account.