Pradhan Mantri Fasal Bima Yojana

Details of Pradhan Mantri Fasal Bima Yojana

In April, 2016, the government of India had launched Pradhan Mantri Fasal Bima Yojana (PMFBY) after rolling back the earlier insurance schemes viz. National Agriculture Insurance Scheme (NAIS), Weather-based Crop Insurance scheme and Modified National Agricultural Insurance Scheme (MNAIS). Thus, at present, PMFBY is the flagship scheme of the government for agricultural insurance in India.

Crops Covered under PMFBY

  • Food crops (Cereals, Millets and Pulses)
  • Oilseeds
  • Annual Commercial / Annual Horticultural crops

Coverage of Risks

  • Prevented Sowing/Planting Risk : Due to deficit rainfall or adverse seasonal condition.
  • Standing Crop (Sowing to Harvesting) : Comprehensive risk insurance is provided to cover yield losses due to non- preventable risks.
  • Post-Harvest Losses : This coverage is available up to a maximum period of two weeks from harvesting, and is applicable for those crops which are allowed to dry in 'cut and spread' condition in the field after harvesting. The coverage is available against specific perils of cyclone, cyclonic rains and unseasonal rains.
  • Localized Risk : Loss/damage resulting from occurrence of identified localized risks of hailstorm, landslide and inundation affecting isolated farms in the notified area.

Benefits of the Pradhan Mantri Fasal Bima Yojana

  • Farmer's contribution to premium is reduced significantly. i.e. 2% for Kharif crops, 1.5% for Rabi Crops and 5% for Annual and Commercial crops.
  • Provision to assess the losses individually in case of localized perils such as hail storm, inundation and land slide.
  • Assessment of yield loss on individual plot basis in case of occurrence of cyclone, cyclonic rains and unseasonal rains throughout the country resulting in damage to harvested crop lying in the field in 'cut and spread' condition up to maximum period of two weeks (14 days) from harvesting for the sole purpose of drying.
  • On-account claim payment is made to the farmer in case of prevented sowing and localized losses.
  • The use of technology will be encouraged to a great extent under this scheme. Smart phones will be used to capture and upload data of crop cutting to reduce the delays in claim payment to farmers. Remote sensing will also be used under this scheme to reduce the number of crop cutting experiments.

Premium Rates and Premium Subsidy

The Actuarial Premium Rate (APR) is charged under PMFBY. This rate is applied on the Sum Insured. The maximum rates of Insurance Charges payable by the farmer are as per the following table:

Remaining premium will be paid equally by state and central government.


BAGIC Participation

In the financial year 2016-17 we have implemented PMFBY in Andhra Pradesh, Bihar, Chhattisgarh, Haryana, Maharashtra and Telangana states and covered around 21 lakh farmers.

In the financial year 2017-18 we have implemented PMFBY in Chhattisgarh, Haryana, Uttar Pradesh, Rajasthan, Maharashtra, Telangana states and covered around 50 lakh farmers.

For the current year we are implementing the PMFBY in the states of Chhattisgarh, Jharkhand, and Uttar Pradesh. We are also implementing Restructured Weather Based Crop Insurance Scheme for Horticulture crops in State of Rajasthan.


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