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    Pradhan Mantri Fasal Bima Yojana (PMFBY)

    1. What is PMFBY, highlight its main features?


    Pradhan Mantri Fasal Bima Yojana (PMFBY) is a new crop insurance scheme that was announced by the Government on 13th January 2016. This scheme lets farmers pay a very low premium to insure their crops and aims at enhancing the purchasing capacity of farmers and their risk-taking ability.


    The Pradhan Mantri Fasal Bima Yojana is premised on a premium amount of 2 percent for Kharif crops and of 1.5 percent for Rabi crops. This covers most food crops and oil crops cultivated in India. The premium is pegged at 5 percent for commercial or horticultural crops (including cotton) for one year.


    2. What is Crop Insurance?


    Crop insurance is a means of protecting the agriculturist against financial losses due to uncertainties that may arise from crop failures/losses arising from named or all unforeseen perils beyond their control.


    3. Objective of PMFBY?


    Pradhan Mantri Fasal Bima Yojana (PMFBY) aims at supporting sustainable production in agriculture sector by way of –

    a) providing financial support to farmers suffering crop loss/damage arising out of unforeseen events

    b) stabilizing the income of farmers to ensure their continuance in farming.

    c) encouraging farmers to adopt innovative and modern agricultural practices.

    d) ensuring flow of credit to the agriculture sector; which will contribute to food security, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting farmers from production risks.


    4. What is the major Coverage of Crops?


    1) Food crops (Cereals, Millets and Pulses), 2) Oilseeds, 3) Annual Commercial / Annual Horticultural crops.


    5. What are Sum Insured /Coverage Limit?


    1. Sum Insured per hectare for both loanee and non-loanee farmers will be same and equal to the Scale of Finance as decided by the District Level Technical Committee, and would be pre-declared by SLCCCI and notified. No other calculation of Scale of Finance will be applicable.  Sum Insured for individual farmer is equal to the Scale of Finance per hectare multiplied by area of the notified crop proposed by the farmer for insurance. ‘Area under cultivation’ shall always be expressed in ‘hectare’.

    2. Sum insured for irrigated and un-irrigated areas may be separate


    6. How is premium calculated under the scheme?


    Before the start of each crop season, participating insurance companies will work out actuarial premium as well as net premium rates (premium rates actually payable by the farmers after premium subsidy) for each notified crop through standard actuarial methodology in conformity with provisions of IRDA.


    7. Upto what period is the Post Harvest cover available and which perils are covered?


    The post-harvest cover is available upto 14 days from harvest for crop lying in ‘cut & spread’ condition only, arising out of cyclonic rains. In other words, no insurance cover would be available on expiry of 14 days from the date of harvest. Claim intimation in respect of losses arising within 14 days from the harvest must be given within 48 hours of occurrence of peril i.e. cyclone.


    8. What all perils are covered under localized calamity?


    Inundation, Hailstorm and landslide under localized calamity claim, cloud burst and natural fire due to lightening affecting part of a notified unit or plot.


    9. What all perils are covered under post-harvest loss?


    Cyclone, Cyclonic rainfall and Unseasonal rainfall


    10. What are the exclusions under the PMFBY scheme?


    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 are excluded.


    11. What are the different claim categories under the PMFBY scheme?


    Individual Claim – Localized claim and Post harvest claim

    Area wise claim- Preventive Sowing, Mid Season Adversity and Wide spread claims


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