Pradhan Mantri Fasal Bima Yojna - PMFBY

Farming continues to be the backbone of India’s economy with nearly 46 – 47% of India’s workforce still dependent on agriculture (1). Despite this, farmers face the constant threat of crop losses due to unpredictable weather, pests, and natural disasters. To address these challenges, the Government of India launched Pradhan Mantri Fasal Bima Yojana (PMFBY).

It is one of India’s main crop insurance schemes, designed to protect farmers from the financial losses caused by various reasons. The scheme offers affordable premiums, extensive coverage and quick claim settlements which help farmers focus on better crop production without the fear of crop failure.

The Pradhan Mantri Fasal Bima Yojana (PMFBY) is the Government of India’s main crop insurance scheme, launched in 2016 to provide financial protection to farmers against crop losses. 

Many times, crops are damaged because of reasons like too much rain, no rain, storms, pests, or diseases. PMFBY helps farmers in such situations by giving them financial support. Under this scheme, farmers must pay a very small premium, which is:

• 2% for Kharif crops
• 1.5% for Rabi crops
• 5% for commercial and horticulture crops

The rest of the amount is paid by the government. If a farmer’s crop gets damaged, they receive compensation based on how much loss has happened. 

The Pradhan Mantri Fasal Bima Yojana provides wide protection to farmers against many types of crop losses. Here’s what is included:

1. Coverage During Sowing (Prevented Sowing)

Sometimes seeds fail to germinate because of very little rain or other weather issues. PMFBY covers losses during sowing and gives compensation if farmers are unable to plant their crops. If most insured farmers in a specified area intend to grow and have spent money but cannot be sown due to adverse weather, they get compensation up to 25% of Sum Insured.

2. Coverage During Growing Season (Mid-Season Adversity)

Insurance cover will be provided to the farmers for immediate relief in case of adverse seasonal conditions during the crop season by floods, prolonged dry spells, severe drought etc., between the period from 30 days from start of onset of sowing and up to 15 days before the onset of harvest time, (as per the crop calendar notified by the States/UT Governments) wherein the expected yield during the season is likely to be less than 50% of normal yield.

3. Coverage After Harvesting (Post-Harvest)

If the crop gets damaged due to unseasonal rain, hailstorms, or cyclones within 14 days after harvesting, PMFBY provides financial support. This is helpful when harvested crops are left in the field for drying.

4. Localised Calamities

The scheme also covers damage caused by local events like hailstorms, inundation (waterlogging), or landslides. This allows farmers to claim insurance even if only a small part of their field is affected.

5. Yield Loss due to Wide-spread Calamities under Basic Cover

If the actual yield per hectare of the insured crop for the insurance unit (calculated on basis of requisite number of CCEs or a combination of CCE & technology derived yield estimates, as the case may be) in insured season, is lower than the minimum (threshold) yield set for that season, compensation may be provided to the insured farmer growing that crop in the same insurance unit.

While PMFBY offers wide coverage, there are certain risks and situations where the scheme does not provide compensation. These exclusions help ensure that only genuine, unavoidable losses are covered:

1. Losses Due to Human Actions or Intentional Damage

PMFBY does not cover any crop loss caused by riots, malicious damage, theft, acts of enmity, and destruction by domestic or wild animals. These losses are considered avoidable or non‑natural and therefore fall outside the scheme.

2. Losses Due to War or Nuclear Risks

Any damage resulting from war or war‑like situations and nuclear risks or radiation is excluded from compensation. These events fall under high‑risk categories not covered by agricultural insurance.

3. Post‑Harvest Losses in Non‑Eligible Conditions

PMFBY only covers post‑harvest losses when the crop is left in “cut & spread” condition in the field for drying. It does not cover:

• Crops that are bundled or heaped before threshing
• Losses beyond 14 days after harvest 

4. Losses in Non-Notified Area

A notified area is a region officially declared by the State Government for PMFBY coverage for specific crops and seasons. Only farmers growing crops within this notified area are eligible for insurance benefits. If a farmer is outside this zone (non-notified area), their crop losses are not covered, and they cannot claim compensation under PMFBY.

Farmers can easily apply for PMFBY with just a few documents and crop details. The application process differs slightly based on whether you are a loanee farmer or a non-loanee farmer. Loanee farmers are those who have taken a crop loan for a notified crop from a bank or financial institution, while non-loanee farmers are those who have not taken a crop loan but wish to voluntarily enrol for crop insurance coverage.

Here are step by step procedures to apply for PMFBY for loanee and non-loanee farmers:

Loanee Farmers

The scheme is optional for all farmers including farmers who have been sanctioned short-term Seasonal Agricultural Operations (SAO) loans though Kisan Credit Card (KCC) for the notified crops from defined Financial Institutions (hereinafter referred to as Loanee farmers). 

Existing Loanee farmers who do not want to get covered under the scheme have the option of opting-out from the Schemes by submitting requisite declaration to loan sanctioning bank branches any time during the year but at least seven days prior to the cut-off date for enrolment of farmers for the respective season. All those farmers who do not submit the declaration would be essentially covered.

Non-loanee Farmers

• CSC: The CSC e-Gov India Ltd., a company established under Ministry of Electronics and Information Technology (MeITY), has been engaged to enroll non-loanee farmers through their network of common service centers (CSCs) manned by Village Level Entrepreneurs (VLEs) across almost all Gram Panchayats of the country. CSC e-Gov will act as a nodal agency for enrollment and related services under PMFBY. Farmers can visit the nearest CSC center along with the required documents and enroll them under PMFBY.
• AIDE App: Non-loanee farmers could also be serviced directly by any designated agencies, duly authorized by the GoI, or insurance intermediaries licensed by the IRDAI for the purpose and they will act as a guide and facilitator wherein they will advise such non loanee farmers about the benefits and desirability of the Scheme. They will also guide the farmers about procedures involved, collect requisite premium and remit individual/ consolidated premium electronically to Insurance Companies and upload details of each insured farmer compulsorily within stipulated timelines on the NCIP using digital platforms like NCIP or AIDE App mandatorily.
• Farmers Corner: Farmers can directly visit to the PMFBY portal -  (pmfby.gov.in), click on Farmer Corner, and can self-register under the scheme.

For Localized & Post Harvest Claim

• Report Crop Loss: The farmer must inform the authorities within 72 hours on the toll-free number 14447 or can chat with WhatsApp chatbot at 7065514447 for quick assistance.
• Crop Damage Assessment: After the claim is registered, a joint survey is conducted.
• Claim Processing: Once assessment is complete, the insurance companies process the claim after verification and the claim amount is transferred directly to the farmer’s bank account post receiving subsidies as per Operational Guidelines.

For Prevented Sowing

There is no need for the insured farmer to intimate the insurance company losses due to prevented sowing, as this will be a widespread calamity and assessment is based on area approach. This benefit is triggered when majority of farmers are unable to sow their crop because of weather conditions. The details are as below:

• The insured farmers shall be paid the claim under prevented sowing if minimum 75% of the sown area of major crop in the notified Insurance Unit (IU) remains unsown or has suffered germination failure due to widespread calamities such as drought or flood.
• This provision needs to be invoked by State Government within 15 days of the cut-off date of enrolment.
• The insurance company would pay the claim within 30 days of the state notification of the prevented sowing, subject to the data on estimated sown area having been received from State Government and receipt of advance subsidy (1st instalment) from government.
• Insurance cover will cease post the payment of 25% of Sum Insured to farmers as final claims.
• Once the claim is paid under prevented sowing, no fresh enrolment of farmers for the affected notified IU's and crop would be accepted. This applies to all the farmers in the notified Insurance Units.

For Widespread Calamities

This cover pays for the shortage in yield of the insured crop compared to Threshold Yield (TY) on area approach.

If the Actual Yield (AY) of the insured crop in the Insured Unit (IU) is less than Threshold Yield of the insured crop in the IU, then all the insured farmers in the Insurance Unit growing the same crop are assumed to have suffered the loss. 

The claim is calculated as: ((Threshold Yield - Actual Yield) / Threshold Yield) * (Sum Insured)

Where,

• AY is calculated on the no. of CCE's done in the Insurance unit
• TY is calculated as the average of the best of 5 years from the last seven years

For Mid-season Calamity

This cover is to provide immediate relief to farmers in case of any widespread calamity or adverse season, wherein the expected yield during the season is likely to be less than 50% of normal yield.

• If due to adverse severe seasonal conditions such as severe drought, dry spells and drought declared by state/UT, abnormally low temperatures, widespread incidence of insects, pests and diseases and natural events such as floods resulting in widespread loss, the expected yield of the insured crop is less than 50% than the normal yield then the mid-season calamity claim is paid to the insured farmer.
• Under this claim, the amount is payable to the insured farmer directly on account and shall be 25% of the total Sum Inured.
• The timeline of the mid-season adversity to be triggered is post one month after the crop sowing and before 15 days of the harvest time.
• The State Government would notify within 7 days regarding the mid-season adversity, and the loss assessment has to be done within the next 15 days from the occurrence of adverse seasonal events.
• The district level joint committee would assess the claim and decide whether the claim is payable under this condition.
• The formula to calculate on-account is: {(Threshold Yield - Actual Yield) / Threshold Yield)} *(Sum Insured *25%)

Redressal of Grievance

To avoid complications, farmers should carefully understand the terms of their insurance policy and ensure they submit their claims correctly and within the prescribed guidelines. 

In case a farmer is unhappy with the claim decision or faces difficulties during the claims process, they can approach the government’s dedicated grievance cell. Reach out to Digit at grievance.agri@godigit.com or call the Krishi Rakshak Portal Helpline: 14447 for further assistance and support.

The Pradhan Mantri Fasal Bima Yojana (PMFBY) has become important for millions of farmers across India. By offering crop insurance and protection against unpredictable weather, pest attacks, and other natural risks, the scheme helps farmers secure their income and continue farming with confidence. 

Overall, PMFBY plays a vital role in strengthening India’s agricultural stability and ensuring that farmers receive timely support when they need it the most.

Source: 

• https://pmfby.gov.in/
  
• https://pmfby.gov.in/pdf/new-schemes-english.pdf