Pradhan Mantri Fasal Bima Yojana (PMFBY) - An Insurance service for farmers

Launched on 18 February 2016 by Prime Minister Shri Narendra Modi Ji, PM Fasal Bima Yojana is an insurance service for farmers for their yields. PMFBY operates under the principle of "One Nation, One Crop, One Premium," providing insurance coverage and financial support to farmers facing crop failure due to natural disasters, pests, or diseases. Its goals include stabilizing farmers' incomes, encouraging modern agricultural practices, and facilitating credit flow to the agriculture sector. The scheme is managed by selected insurance companies under the guidance of the Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW), with collaboration from various agencies, including banks and government departments related to agriculture, cooperation, and statistics. This refers to specific regions designated by the State Government where crops are insured during a season.

Coverage of crops:

1. Oil seeds

2. Food crop

3. Annual Commercial / Annual Horticultural crops.

In addition for perennial crops, pilots for coverage can be taken for those perennial horticultural crops for which standard methodology for yield estimation is available.

Risks Covered: Under PM Fasal Bima here are the categories of risks covered -

Yield Losses: Comprehensive insurance for non-preventable risks such as natural disasters (fires, floods, droughts) and pests.

Prevented Sowing: Compensation of up to 25% of the sum insured if adverse weather prevents sowing.

Post-Harvest Losses: Coverage for crops drying in the field for up to 14 days after harvesting against certain weather conditions.

Localized Calamities: Coverage for specific localized risks affecting individual farms.

Benefits: Agriculture and farmers are our priority, hence they are provided several benefits under the Fasal Bima Yojana by the Central government - - Comprehensive insurance for Kharif and Rabi crops.

- Additional coverage for specific circumstances.

- Optional for all farmers, providing income stability to continue farming.

Premium Rates:

- Kharif Crops: Max 2.0% of the sum insured.

- Rabi Crops: Max 1.5% of the sum insured.

- Annual Commercial/Horticultural Crops:** Max 5% of the sum insured.

The difference between the premium and the insurance charges is shared equally between the Centre and State as a subsidy.

Eligibility: Farmers must be cultivators or sharecroppers with valid land ownership or tenancy agreements. They should apply for insurance within two weeks of sowing and have no other crop loss compensation. A valid bank account and identity proof are also required. Although, coverage does not include losses from war, nuclear risks, riots, theft, and preventable risks related to post-harvest handling.

Application Procedure: ?

Farmers can apply online through the official portal by creating an account or as a guest. Claims for crop loss must be filed within 72 hours, accompanied by supporting documents like photographs and reports from local authorities.

Documents Required: ?

- Bank account number

- Aadhaar card

- Khasra number of land

- Agreement photocopy

- Ration card

- Voter ID

- Driving license

- Passport-size photo

The Pradhan Mantri Fasal Bima Yojana aims at supporting sustainable production in agriculture by providing financial support to farmers suffering crop loss/damage.