Pradhan Mantri Fasal Bima Yojana (PMFBY)

Enrolment Process Flow

Enrolment through Banks

The loanee Farmers are enrolled only through banks as crop Insurance is mandatory for farmers availing seasonal crop loans through Kisan Credit Cards (KCC) .In case of non-loanee farmers, the farmers may voluntarily take the Insurance cover and can enroll themselves through banks. The Commercial banks, Co-operative banks and the Regional Rural Banks (RRBs) are involved in enrolling the farmers. The Farmer list is uploaded with required details in the PMFBY portal for both loanee and non-loanee farmers. In case of non-loanee farmers the bank needs to submit the hard copies of KYC documents along with the proposal forms. The Insurance companies download the farmers’ data from the portal and proceed with their respective procedures. The premium for loanee farmers is remitted against their agriculture loans and the non-loanee farmers pay their premium upfront.

Enrolment Through CSC (Common Service Centre ) and Intermediaries

The enrolment for non-loanee farmers is done through CSC at the CSC centre or through designated channels, other authorized channel partners or insurance intermediaries, approved by the IRDA. The farmer’s KYC and insurance related documents verification is done, post verification, The CSCs and Insurance intermediaries collect requisite premium and remit individual/ consolidated premium to insurance company, accompanied by individual proposal forms and summary details in Declarations/ Listing sheet (MIS), provide soft copy to IA and details of each insured farmer and also upload the data directly to the crop insurance portal. The Insurance companies download the farmers’ data from the portal and proceed with their respective procedures. Documents like land record, sowing certificate, self declaration form etc are taken into account for enrolment based on the requisition by different enrolment sources.

Direct Enrolment by Farmer

The non-loanee farmer may submit insurance proposals personally/ through post to insurance company with requisite premium. Non-loanee farmer can also avail insurance through PMFBY portal designed by Government. However, it is mandatory that non-loanee farmers, personally submitting proposals to insurance company or through crop insurance portal, should have insurable interest and submit necessary documentary evidence as proof (like print copy of application along with remittance of premium). Documents like land record, sowing certificate, self declaration form, Identity proof etc are taken into account for enrolment.

For detailed enrollment process please refer operational guidelines.

Claims Process

The PMFBY scheme operates on an area based approach process and the lowest level of notified area is called the Insurance Unit. To determine the loss of crop, as per operational guidelines, CCE is mandatory and State Govt/UT need to ensure that minimum CCEs are planned and conducted for irrigated and un – irrigated crops separately in such areas.

Following are the stages of crop and risks leading to crop loss which are covered under the scheme.

Policy will be terminated post payment.

Wide Spread Calamities

If ‘Actual Yield’ per hectare of insured crop for the insurance unit (calculated on basis of requisite number of CCEs) in insured season, falls short of specified ‘Threshold Yield’ (TY), all insured farmers growing that crop in the defined area are deemed to have suffered shortfall of similar magnitude in yield. PMFBY seeks to provide coverage against such contingency.

Claims shall be calculated at IU level as per the following formula:  

    (Threshold Yield – Actual Yield)

_____________________________ X     Sum Insured

           Threshold Yield

Where Threshold Yield (TY) for a crop in a notified insurance unit is the average yield of best 5 years from past seven years of that season multiplied by applicable Indemnity Level for that crop

Prevented Sowing

Insurance cover will be provided to farmers in case of widespread incidence of eligible risks affecting crops in more than 75% of area sown in a notified unit at early stage, but not later than 15 days from cut off date for enrolment, leading to total loss of crop or the farmers are not in a position to either sow or transplant the crop.

• Cover available for major crops only
• Payment will be 25% of sum insured

Mid-Season Adversity

Insurance cover will be provided to the farmers to provide immediate relief in case of adverse seasonal conditions during the crop season viz. floods, prolonged dry spells, severe drought etc., wherein expected yield during the season is likely to be less than 50% of Normal Yield.

Highlights

• The quantum of likely losses and the amount of ‘on-account’ payment shall be decided based on the joint survey by Insurance Company and State Govt. officials.
• Amount payable would be 25% of the likely claims, subject to adjustment against final claims.
• If adversity occurs within 15 days before the normal harvest time, this provision will not be invoked.

Loss Assessment Procedure

On-Account payment would be calculated as per following formula:

                                    (Threshold Yield-Estimated Yield) 

                              ___________________________________   × Sum Insured ×25%                                               

                                                Threshold Yield

Post Harvest Losses

Provision has been made for assessment of yield loss on individual plot basis in case of occurrence of hailstorm, cyclone, cyclonic rains and unseasonal rains  resulting in damage to harvested crop lying in the field in ‘cut and spread’ / small bundled condition for drying up to maximum period of two weeks(14 days) from harvesting , for sole purpose of drying.

Loss Assessment Procedure

• Immediate intimation required (within 72 hours) by the insured farmer
• Available for all crops damaged by specified perils, which are left in the field after harvesting in“cut and spread condition”/small bundled conditions for drying up to a period of 14 days from harvest. State Govt. shall also notify the normal harvesting period of each crop

Localised Calamities

The Scheme provided for insurance cover at individual farm level to crop losses due to occurrence of localized perils/ calamities viz. Hailstorm, Landslide, Inundation, Cloud burst and Natural fire due to lightening affecting part of a notified unit or a plot.

For the purpose of indemnification of crop losses due to inundation as localised claim, Inundation is a situation where insured field is covered or submerged by water due to rise in water level by rainwater that has fallen naturally from the sky or from an artesian well or flood water locally and where water stays for prolonged period and causes visible damage to the crop.

Highlights

• Only those farmers would be eligible for financial support under this cover who have paid the premium/the premium has been debited from their account before occurrence of the insured peril
• If the pay out under area approach (based on CCEs data) is more than localized losses, the higher claims of two will be payable to insured farmers
• Percentage of loss would be arrived at by Insurance Company through requisite percentage of sample survey as decided by the Joint Committee of the affected area.

Loss Assessment Procedure

• Immediate intimation required (within 72 hours) by the insured farmer.
• Intimation must contain details of survey number-wise insured crop and acreage affected.

Business Statistics / Historic Data:

PMFBY

RWBCIS

District and Crop Coverage PMFBY Kharif - 2018