Pradhan Mantri Fasal Bima Yojana (PMFBY)

Pradhan Mantri Fasal Bima Yojana

About the Pradhan Mantri Fasal Bima Yojana

The Pradhan Mantri Fasal Bima Yojana (PMFBY) launched on 18 February 2016 by Prime Minister Narendra Modi is an insurance service for farmers for their yields. PMFBY scheme was designed in line with the One Nation–One Scheme and replaces three older Schemes Modified National Agricultural Insurance Scheme (MNAIS), the Weather-based Crop Insurance Scheme (WBCIS), and the National Agricultural Insurance Scheme (NAIS)

Objectives of the PMFBY Schemes
  1. To provide financial support to farmers in case of crop loss or damage due to unforeseen events such as natural disasters and pest attacks.
  2. To provide insurance coverage to farmers at an affordable premium and to reduce the premium burden on farmers.
  3. To encourage farmers to adopt improved technologies and practices and to reduce the risk associated with farming.
  4. To reduce the financial burden on the government in providing relief to farmers in case of crop losses.
  5. To provide easy access to insurance coverage for farmers, through the use of technology, such as remote sensing and mobile apps.
  6. To increase the flow of credit to farmers, banks and other lending institutions may require insurance coverage as a prerequisite for loan disbursal.
  7. To make the process of claiming insurance more transparent and efficient, by reducing delays and reducing the need for intermediaries.
  8. To improve the financial security of farmers and their families, by providing them with a safety net against crop losses.
Coverage of Risks by the PMFBY
  • Prevented Sowing/Planting Risk: The insured area is prevented from sowing/ planting due to deficit rainfall or adverse seasonal conditions
  • Standing Crop (Sowing to Harvesting): Comprehensive risk insurance is provided to cover yield losses due to non-preventable risks, viz.: Drought, Dry spells, Flood, Inundation, Pests & Diseases, Landslides, Natural Fire & Lightening, Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, etc.
  • Post-Harvest Losses: coverage is available only up to a maximum period of two weeks from harvesting for those crops which are allowed to dry in cut & spread conditions in the field after harvesting against specific perils of cyclone & cyclonic rains and unseasonal rains.
  • d) Localized Calamities: Loss/damage resulting from the occurrence of identified localized risks of hailstorms, landslides, and Inundation affecting isolated farms in the notified area
Insurance Amount in PMFBY

The insurance amount provided under the Pradhan Mantri Fasal Bima Yojana (PMFBY) varies depending on the type of crop and the area in which it is grown. The amount is based on the average revenue of the crop, and is calculated as a percentage of the revenue, with a specified upper and lower limit. The premium paid by the farmer for this insurance is also calculated as a percentage of the revenue, with the government and the insurance company subsidizing the remaining amount.

The insurance coverage provided under the PMFBY includes:

  • Coverage of yield loss due to non-preventable risks, such as natural disasters, pest and disease attacks, and unseasonal weather conditions.
  • Coverage of post-harvest losses, such as losses due to storage, transportation, or market-related factors.
  • Coverage of localized risks, such as hailstorms, landslides, and inundation.
  • Coverage of loss due to deficiency in rainfall, irrigation failure, and waterlogging.
  • Coverage of livelihood risks, such as loss of milch animals and working animals.
  • Coverage of losses due to loss of assets of the farmers like bee hives, fishery, goat rearing, etc.

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