Pradhan Mantri Fasal Bima Yojana (PMFBY) aims at supporting sustainable production in agriculture sector by way of:
India is largely an agrarian country and our farmers are considered to be the backbone of our nation. The effort put in by our farmers in their work is commendable. To avoid damage to their crops from natural disasters such as flood, drought, storm, rains, forest fire; a crop insurance product like Pradhan Mantri Fasal Bima Yojana empowers the farmers for compensations in case a claim arises.
1. The Actuarial Premium Rate (APR) would be charged under PMFBY by implementing agency (IA). The rate of Insurance Charges payable by the farmer will be as per the following table:
Gujarat :- Amreli, Anand, Banaskantha, Bharuch, GandhiNagar, Mehsana, Morbi, Narmada, Panchmahal, Patan, SurendraNagar.
Uttar Pradesh : Budaun, Etah, Farrukhabad, Hamirpur, Hathras, Jaunpur, Kasganj, Lalitpur, Mau, Rae Bareli, Shamli, Sitapur.
Haryana :- Charkhi Dadri, Fathebad, Jhajjar, Mewat, Palwal, Panipat, Rohtak.
Karnataka :- Bagalkot, Kalaburgi, Ramanagara.
West Bengal :- Hooghly, Koch Bihar, Maldah, North Twenty Four Parganas, Purba Bardhaman, Purba Medinipur, South Twenty Four Parganas,
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Farmers may take this Insurance through Bank, CSC Centers, Insurance Compney, Insurance companies’ Intermediary, Online portal of Insurance company and Crop Insurance portal designed by GOI.
Loanee Farmers : As part of Compulsory coverage, through concerned Bank Branch enrollment can be done without any proposal form and document formalities.
Non-Loanee Farmers : Farmers want to avail insurance shall fill up Proposal Form of the Scheme and submit the same along with the required document (Such as Land Possession certificate, Showing Certificate, Aadhar etc) to nearest bank branch or CSC or authorized channel partner of USGI. Non-Loanee farmer may submit insurance proposals personally / through ‘on-line portal’ of concerned insurance company or crop insurance portal designed by Government for the purpose.
Currently enrolment for Kharif Season 2018 is closed.
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It did not rain last year and cause of that I have suffered with the losses for my Maize crop but thankfully I was covered under PMFBY scheme. Against my premium of Rs.939 I have received claim of Rs.20000 which was great help. I thank government & Insurance Company for running this scheme so effectively.
Shivappa - Farmer Bagalkot (Karnataka), Kharif 17
With the initiative and announcement of District commissioner & Insurance Company I got to know the importance of PMFBY scheme and got myself enrolled in Kharif 17. Due to loss I was entitled for the claim and Insurance Company paid into my account.
Suresh - Farmer Bagalkot (Karnataka), Kharif 17
I have taken Fasal Bima under PMFBY in past also and also got claim for my losses that is why I have taken insurance this year also. I am very Thankful to our PM and Insurance company for thinking about welfare of farmers.
Nareshputra - Farmer Charkhi Dadri (Haryana), Kharif 18
Under Pradhan Mantri Fasal Bima Yojana I take insurance for my crop every year which is very beneficial for farmers like us. It is safety against our losses and all the farmers should take benefit from Pradhan Mantri Fasal Bima.
Hukum Singh - Hamirpur (UP), Kharif 17
I have 6 acres of land in which I cultivate paddy crop. In 2017 my crop was spoiled for which I had received recovery under Pradhan Mantri Yojana. I request all the farmers to take this policy as it not only helps in meeting losses caused due to weather but also help in cultivating the next crop. I really appreciate our government for launching the scheme.
Sandeep Kumar - Tharva Village, Block Tohana (Fatehabad), Kharif 18
Like every year this year also I enrolled for Fasal Bima, This year we got to know about the scheme related things and timeline through making organized by Insurance Company. Insurance company did good job in spreading awareness through various medium.
Sujit Dodoi - Farmer Hoogly (West Bengal), Kharif 18
Implementing Agency : The PMFBY Scheme shall be implemented through a multi-agency framework by selected insurance companies under the overall guidance & control of the Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW), Ministry of Agriculture & Farmers Welfare (MoA&FW), Government of India (GOI) and the concerned State in co-ordination with various other agencies; viz Financial Institutions like Commercial Banks, Co-operative Banks, Regional Rural Banks and their regulatory bodies, Government Departments viz. Agriculture, Co-operation, Horticulture, Statistics, Revenue, Information/Science & Technology, Panchayati Raj etc.
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).
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
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:
Maximum Insurance charges payable by farmer (% of Sum Insured)
Food & Oilseeds crops
(all cereals, millets, & oilseeds, pulses)
2.0% of SI or Actuarial rate, whichever is less
1.5% of SI or Actuarial rate, whichever is less
Kharif & Rabi
Annual Commercial / Annual Horticultural crops
5% of SI or Actuarial rate, whichever is less
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:
Minimum no. of CCEs required to be done
Mandal/Hobli/Phirka /Revenue Circle
4 for major crops
8 for other crops
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
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.