Weather Based Crop Insurance Scheme: Objectives, Eligibility & Application Process

India is a country with agriculture as the primary occupation. To support the farmers financially, the Indian Government introduced the Comprehensive Crop Insurance Scheme (CCIS) with effect from Kharif 1985.

The Weather Based Crop Insurance Scheme (WBCIS) was implemented to enlarge the CCIS coverage. It provides financial protection against anticipated crop loss due to unsuitable weather incidences.

What Is Weather Based Crop Insurance Scheme in India?

WBCIS was launched in 20 states in 2007 (Kharif/Rabi) to mitigate the anticipated crop loss due to adverse weather incidences. This scheme covers the losses in Kharif crop yield due to extreme rainfall conditions, both deficit and excess. It also provides financial assistance against unsuitable weather conditions during Rabi.

What Is the Objective of Weather Based Crop Insurance Scheme?

WBCIS focuses on compensating for crop losses due to the following weather perils to curb any financial hardship of the insured farmers:tTemperature – high (heat) and low temperatures, relative humidity, rainfall - excess, deficit, unseasonal, dry spell, rainy days and dry days, and wind speed.

Note: Farmers who opted for basic coverage under WBCIS can elevate their insurance scheme by including hailstorm and cloud bust Add-on/Index-Plus products.

The payment structure is prepared based on the extent of losses triggered by unfavourable weather conditions.

Eligibility Criteria for the Weather Based Crop Insurance Scheme

The eligibility criteria to obtain the insurance benefit of Weather Based Crop Insurance Scheme includes-

Eligible Farmers Under the Scheme

Farmers, including tenant cultivators and sharecroppers cultivating crops in the specified area, are eligible.

Note: The insurable interest for the insured crop is mandatory for farmers.

Farmers opting for Seasonal Agricultural Operations (SAO) loans from any Financial Organisations (loanee farmers) for the notified crops are covered mandatorily.

WBCIS provides additional benefits to SC/ST Women farmers. However, for non-loanee farmers, WBCIS is optional.

Eligible Crops Under the Scheme

Weather Based Crop Insurance Scheme (WBCIS) covers crop varieties, including-

Food crops like cereals, pulses and millets
Oilseeds
Commercial or horticulture crops

How Does WBCIS Select Areas and Crops?

State Level Coordination Committee on Crop Insurance (SLCCCI) selects the areas and crops based on factors such as-

Availability of past weather reports
Minimum cropped area
Potential weather perils

The area and crop selection process includes-

Meetings organised by the State Government with insurance providers and specialists from Agro-meteorology from State Agriculture Universities and Research Institutes
The Government constitutes a Technical Committee that performs the following tasks-
- Weather triggers, crop and area selection
- Evaluation of proposals provided by the Insurance Company
- Term-sheets approval of the proposed crop or area as per the illustrated correlation between past weather and yield reports
- Demonstration of products and benefits to the farmers are based on WBCIS guidelines.

Additionally, WBCIS operates on the “Area Approach” principle in selected notified areas. Therefore, the State Government only declares the smallest areas as insurance units like the Village Panchayat, Mandal, Hobli, Revenue Circle, Block and Tehsil.

How to Apply for Weather Based Crop Insurance Scheme?

Cultivators can apply for WBCIS by following the steps given below.

Step 1: Visit the official website of the Pradhan Mantri Fasal Bima Yojana Ministry of Agriculture & Farmers Welfare.
Step 2: Click on ‘Farmer Corner’ option.
Step 3: Press ’Guest Farmer’ option to proceed further. Otherwise, log in with your mobile number.
Step 4: Fill up the fields with personal and residential details, farmer ID and account details then, enter the captcha code ad click on ‘Create User’.

To check the beneficiary list of the Weather Based Crop Insurance Scheme in 2022, click on Application Status and enter receipt number, captcha code and click on ‘Check Status’ option.

How to File a Claim Against Weather Based Crop Insurance Scheme?

Insured farmers can raise claims against WBCIS directly on the official website of PMFBY, Ministry of Agriculture and Farmer Welfare Department in the following steps.

Step 1: Visit the official website of the Pradhan Mantri Fasal Bima Yojana Ministry of Agriculture & Farmers Welfare.
Step 2: Click on ‘Report Crop Loss’ option.

It will redirect to the page, including the insurance companies’ names and contact details like toll-free numbers, email IDs, and addresses.

Alternatively, farmers can download the Crop Insurance App to report crop loss hassle-free.

Note: The claim verification and settlement are automated processes. It credits the claimed amount to the insured farmer’s bank account.

What Are the Documents Required for Weather Based Crop Insurance Scheme?

The non-loanee farmers need to submit the following documents to utilise the benefit of WBCIS.

Records of Right (RoR)
Required contract documents
Land Possession Certificate (LPC)
Documents with agreement details

The concerned State Government may ask for additional documents from sharecroppers and tenant farmers.

What Are the Premium Subsidies and Premium Rates of the WBCIS Scheme?

The Implementing Agency (IA) charges the Actuarial Premium Rate (APR) under WBCIS. The following table displays the rate of Insurance Charges that the farmers are liable to pay.

Season	Crops	Percentage of Sum Insured
Rabi	All food grains, including cereals, oilseeds crops, millets and pulses	1.5% of APR or SI (whichever is lower)
Kharif	All food grains, including cereals, oilseeds crops, millets and pulses	2% of APR or SI (whichever is lower)
Rabi and Kharif	Annual commercial or horticultural crops	5% of APR or SI (whichever is lower)

Individuals can calculate the insurance premium payable by using an online calculator available at the official website of PMFBY, Ministry of Agriculture and Farmer Welfare Department against the following details-

Year
Season
Scheme
State
District
Crop

The Government has also revamped Weather Based Crop Insurance Scheme and made it voluntary for all farmers, including cultivators with existing crop loans, to efficiently address the challenges.

Frequently Asked Questions

✓ Which general insurance companies provide insurance services under WBCIS?

The public financial organisations selected to provide insurance services under WBCIS are-

Agriculture Insurance Company
Reliance General Insurance Co. Ltd.
United India Insurance Co.
SBI General Insurance
ICICI Lombard General Insurance Co. Ltd.
Bajaj Allianz
HDFC ERGO General Insurance Co. Ltd.
Cholamandalam MS General Insurance Company
Future Generali India Insurance Co. Ltd.
IFFCO Tokio General Insurance Co. Ltd.
Tata AIG General Insurance Co. Ltd.
Universal Sompo General Insurance Company

✓ What is the risk or insurance period for WBCIS?

WBCIS covers the entire period from sowing to maturity of the crops. It depends on the crop duration and weather criteria and may vary in individual crops and reference unit areas.