PM Fasal Bima Yojana — Crop Insurance for Farmers

Pradhan Mantri Fasal Bima Yojana (PMFBY) is India's comprehensive crop insurance scheme launched in January 2016. It provides financial support to farmers suffering crop loss or damage due to unforeseen events like natural calamities, pests, and diseases. The scheme has one of the lowest premium rates globally, with the government subsidizing the bulk of the premium.

What is PM Fasal Bima Yojana?#

PMFBY is a crop insurance scheme where farmers pay a small premium and the government pays the remaining premium to insurance companies. In case of crop failure or damage, farmers receive compensation based on the insured sum.

Premium Structure

| Crop Type | Farmer's Premium | Government Subsidy | |-----------|-----------------|-------------------| | Kharif food crops | 2% of sum insured | Remaining amount | | Rabi food crops | 1.5% of sum insured | Remaining amount | | Commercial/Horticulture | 5% of sum insured | Remaining amount |

Who is Eligible?#

• All farmers growing notified crops in notified areas
• Loanee farmers: Mandatory for farmers with crop loans (KCC holders)
• Non-loanee farmers: Voluntary enrollment
• Tenant/sharecropper farmers: Eligible with proper documentation
• Both small and large farmers can enroll

What is Covered?#

Risks Covered

1. Prevented sowing/planting: If widespread calamity prevents sowing
2. Standing crop losses: Damage due to drought, flood, hailstorm, cyclone, typhoon, tempest, hurricane, tornado, fire, lightning, earthquake, landslide, inundation, pest/disease attack
3. Post-harvest losses: Damage within 14 days of harvest due to cyclone, cyclonic rain, unseasonal rain
4. Localized calamities: Hailstorm, landslide, inundation affecting isolated farms

What is NOT Covered

• War and nuclear risks
• Malicious damage by farmer
• Theft or act of enmity
• Losses due to negligence

Sum Insured#

The sum insured is based on the Scale of Finance (SOF) set by the District Level Technical Committee:

• Covers the cost of cultivation per hectare
• Varies by crop and district
• Typically ₹20,000–₹1,50,000 per hectare depending on crop

Documents Required#

1. Land records (Khasra/Khatauni/Jamabandi)
2. Aadhaar card
3. Bank account details (for claim payment)
4. Sowing certificate (from Patwari or self-declaration)
5. Loan documents (for loanee farmers)
6. Mobile number

How to Apply#

For Loanee Farmers (KCC Holders)

• Enrollment is automatic through the bank
• Premium is deducted from loan account
• Inform bank if you want to opt out

For Non-Loanee Farmers

Through Bank:

1. Visit bank branch before cutoff date
2. Fill PMFBY enrollment form
3. Submit land records and Aadhaar
4. Pay premium amount
5. Receive policy document

Through CSC:

1. Visit nearest CSC with documents
2. CSC operator enrolls online
3. Pay premium
4. Receive acknowledgment

Online (pmfby.gov.in):

1. Visit pmfby.gov.in
2. Click "Farmer Corner" → "Apply for Crop Insurance"
3. Fill enrollment form
4. Upload documents
5. Pay premium online
6. Download policy

Important Deadlines

• Kharif crops: Enrollment by July 31 (varies by state)
• Rabi crops: Enrollment by December 31 (varies by state)
• Check state-specific cutoff dates at pmfby.gov.in

How Claims are Settled#

For Widespread Losses

1. State government conducts Crop Cutting Experiments (CCE)
2. Actual yield compared to threshold yield
3. If actual yield < threshold yield, compensation calculated proportionally
4. Compensation credited to farmer's bank account within 2 months of harvest

For Localized/Post-Harvest Losses

1. Farmer must report loss within 72 hours to insurance company, bank, or state agriculture department
2. Insurance company conducts field survey
3. Compensation assessed and paid

Restructured PMFBY (2020 Reforms)#

Key changes made in 2020:

• Voluntary for all farmers (previously mandatory for loanee farmers)
• State flexibility: States can choose to implement or opt out
• Improved technology: Satellite imagery and drones for faster claim assessment
• Faster claims: 25% advance payment for prevented sowing

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Frequently Asked Questions#

Frequently Asked Questions#

1. What is the premium for PMFBY?

Farmers pay 2% of sum insured for Kharif crops, 1.5% for Rabi crops, and 5% for commercial/horticulture crops. The government pays the remaining premium to the insurance company.

2. Is PMFBY mandatory for farmers with crop loans?

From 2020, PMFBY is voluntary for all farmers, including those with crop loans (KCC holders). Loanee farmers can opt out by submitting a declaration to their bank before the cutoff date.

3. How long does it take to receive PMFBY claim?

For widespread crop losses assessed through CCE, claims are settled within 2 months of harvest. For localized losses, claims are settled within 30 days of survey completion.

4. What is the sum insured under PMFBY?

The sum insured is based on the Scale of Finance (SOF) set by the District Level Technical Committee. It covers the cost of cultivation and varies by crop and district, typically ₹20,000–₹1,50,000 per hectare.

5. Can tenant farmers apply for PMFBY?

Yes. Tenant and sharecropper farmers are eligible for PMFBY. They need to provide a tenancy agreement or self-declaration along with the landowner's land records.

6. How do I report crop loss under PMFBY?

Report crop loss within 72 hours "to": (1) Insurance company's toll-free number, (2) Your bank branch, (3) State agriculture department, or (4) Through the Crop Insurance App. Provide details of the loss and affected area.

7. What is the Crop Insurance App?

The Crop Insurance App (available on Android and iOS) allows farmers to enroll for PMFBY, report crop losses, track claim status, and access scheme information. Download from pmfby.gov.in.

8. Are all crops covered under PMFBY?

Only notified crops in notified areas are covered. The list of notified crops varies by state and district. Check with your local agriculture office or at pmfby.gov.in for crops covered in your area.

9. What is the difference between PMFBY and RWBCIS?

PMFBY (Pradhan Mantri Fasal Bima Yojana) covers yield losses assessed through crop cutting experiments. RWBCIS (Restructured Weather Based Crop Insurance Scheme) covers losses based on weather parameters (rainfall, temperature) without field surveys.

10. Can I get PMFBY for horticulture crops?

Yes. Horticulture crops are covered under PMFBY with a 5% farmer premium. The coverage and sum insured vary by crop and state. Check with your state horticulture department for specific crops covered.