fincash logo SOLUTIONS
EXPLORE FUNDS
CALCULATORS
LOG IN
SIGN UP

Fincash » Government Schemes » PMFBY

Pradhan Mantri Fasal Bima Yojana (PMFBY)

Updated on October 9, 2024 , 21560 views

Pradhan Mantri Fasal Bima Yojana was launched on 18 February 2016 by the Prime Minister Narendra Modi. The scheme aims at providing financial support to the farmers to help them with loss of crops due to natural disaster, pest and disease. PMFBY is in line with one nation- one scheme theme. It has replaced two existing schemes - National Agriculture insurance Scheme and Modified National Agriculture Insurance Scheme. Here you will get a detailed guide on Pradhan Mantri Fasal Bima Yojana Scheme.

Pradhan Mantri Fasal Bima Yojana

The scheme ensures at stabilising the Income of farmers so there is continuance in farming. Furthermore, it encourages farmers to adopt innovative and contemporary agricultural practices.

Benefits of PMFBY

Some of the important benefits of PMFBY are as follows:

  • Farmers need to pay a premium of 2% for all Kharif crops and 1.5% for all Rabi crops. In the case of commercial and horticultural crops, only 5% premium should be paid.
  • The premium rates are very low for the farmers and the rest amount will be paid by the Government to render full insured amount to the farmer for crop loss due to natural calamities.
  • There is no upper limit on government subsidy. Even if the balance is premium, for say 90% , it is borne by the Government.
  • The use of technology by the scheme will be done on a great extent. Smartphones will be used to capture and upload information of crop cutting. This will reduce delays in claim payment of farmers.
  • Also, remote sensing drones and GPS technology will be utilised to reduce the crop cutting experiments.

Ready to Invest?
Talk to our investment specialist
Disclaimer:
By submitting this form I authorize Fincash.com to call/SMS/email me about its products and I accept the terms of Privacy Policy and Terms & Conditions.

Risks Covered under PMFBY

Following are the risks covered under the PMFBY-

1. Yield Losses

Comprehensive risk insurance is provided to cover yield losses due to non-preventable risks, such as -:

  • Natural fire and Lightning
  • Storm, Cyclone, Typhoon, Hurricane, Tornado, Hailstorm
  • Flood, Landslide and Inundation
  • Dry Spells and Drought
  • Pests and Diseases

2. Unable to Sow Crops

Benefits are given if farmers are unable to sow crops due to unfavourable seasonal conditions. Framers shall be eligible for indemnity claims up to a maximum of 25%of the sum-insured.

3. Post-Harvest Losses

After harvesting, if there is damage caused to the crops that are kept for drying in the field for a maximum 14 days due to unseasonal cyclone, storm or hail, then the insurance company will compensate for the damages.

4. Localised Calamities

Loss or damage resulting from the occurrence of hailstorm, landslides and inundation affecting isolated crops in the notified area would also be covered in the scheme

List of Insurance Companies of PMFBY

Some of the private Insurance companies present in the Government agriculture or crop scheme based on their financial strength, insurance, manpower and expertise are mentioned below -

PMFBY Premium Rates

The Actuarial Premium Rate APR is charged under the PMFBY by IA.

The rate of the insurance charges are payable by the farmer as per the following table

Season Crops Maximum Insurance charges payable by the farmer (% of sum insured)
Kharif Food & oilseeds crops (all cereals, millets, & oilseeds, pulses) 2% of SI or Actuarial rate, whichever is less
Rabi Food & oilseeds crops (all cereals, millets, & oilseeds, pulses) 1.5% of SI or Actuarial rate, whichever is less
Kharif & Rabi Annual Commercial/Annual Horticultural crops 5% of SI or Actuarial rate, whichever is less

Eligibility for PMFBY Scheme

  • Compulsory Component

Farmers in the notified area possess a Kisan Credit Card or a Crop loan account to whom Credit Limit is sanctioned or renewed for notified crop

  • Voluntary Component

This coverage may be availed by framers who are not covered above. This also includes Kisan Credit Card or Crop Loan Account whose credit limit is not renewed.

Procedure for Settlement of PMFBY Claims

  • Coverage Through Banks

The claim amount will be released to the individual’s Bank account. The bank will credit in the account of a farmer and display beneficiaries on their notice board. Furthermore, the bank will provide individual farmer details and claim credit details to IA and will include in the centralised data repository.

  • Coverage through other Insurance Intermediaries

The claim amount will be released electronically to the individual’s insured bank account.

Pradhan Mantri Fasal Bima Yojana Online Registration

An individual can register or apply online for Pradhan Mantri Fasal Bima Yojana. Here is the complete procedure to apply for Pradhan Mantri Fasal Bima Yojana-

  • Visit the official website of PMFBY - pmfby(dot)gov(dot)in
  • On the homepage, click on Farmer Corner – Apply for Crop Insurance by Yourself
  • Now, create a new user account by clicking on Guest Farmers and fill the important details and enter captcha asked on the screen
  • Now click on Create User button to complete the registration
Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
How helpful was this page ?
Rated 4.3, based on 5 reviews.
POST A COMMENT

1 - 1 of 1