Pradhan Mantri Fasal Bima Yojana (PMFBY)

Objective
It aims at supporting sustainable production in agriculture sector.

• Providing financial support to farmers suffering crop loss/damage arising out of unforeseen events
• Stabilizing the income of farmers to ensure their continuance in farming
• Encouraging farmers to adopt innovative and modern agricultural practices
• Ensuring flow of credit to the agriculture sector, which will contribute to food security, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting farmers from production risks.

Crop Coverage

The crops that are covered under the PMFBY scheme are mentioned as below.

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

All farmers including sharecroppers and tenant farmers growing the notified crops in the notified areas are eligible for coverage. However, farmers should have insurable interest for the notified/insured crops.

Compulsory component-

All farmers having been sanctioned Seasonal Agricultural Operations (SAO) loans from Financial Institutions (i.e. loanee farmers) for the notified crop(s) season would be covered compulsorily.

Voluntary Component

The Scheme is optional for non-loanee farmers.

Coverage of Risks and Exclusions

Following stages of the crop risks leading to crop loss are covered under the Scheme.

Prevented Sowing/Planting/Germination Risk: Insured area is prevented from sowing/ planting/germination due to deficit rainfall or adverse weather conditions.

Standing Crop: Comprehensive risk insurance is provided to cover yield losses due to non-preventable risks, viz. Drought, Dry spell, Flood, Inundation, Pests and Diseases, Landslides, Fire due to natural causes ,Lightening, Storm, Hailstorm and Cyclone

Post-Harvest Losses: Coverage is available only upto a maximum period of two weeks from harvesting, for those crops which are required to be dried in cut and spread condition in the field after harvesting against specific perils of cyclone, cyclonic rains and unseasonal rains.

Localized Calamities: Loss/damage to notified insured crops resulting from occurrence of identified localized risks of hailstorm, landslide, inundation, cloud burst and natural fire due to lightening affecting isolated farms in the notified area.

General Exclusions:

Losses arising out of war and nuclear risks, malicious damage and other preventable risks shall be excluded.

Premium Rates and Premium Subsidy

A low farmer premium rate is charged and subsidy is provided by State & Central Govt. The rate of premium payable by the farmer will be as per the following table

Season: Kharif
Crops: All food grain and Oilseeds crops (all Cereals, Millets, Pulses and Oilseeds crops)
Maximum Premium payable by farmer (% of Sum Insured)*: 2.0% of SI or Actuarial rate, whichever is less

Season: Rabi
Crops: All food grain and Oilseeds crops (all Cereals Millets, Pulses and Oilseeds crops)
Maximum Premium payable by farmer (% of Sum Insured)*: 1.5% of SI or Actuarial rate, whichever is less

Season: Kharif and Rabi
Crops: Annual Commercial/ Annual Horticultural crops
Maximum Premium payable by farmer (% of Sum Insured)*: 5% of SI or Actuarial rate, whichever is less

Adoption of Technology-

In an endeavor to integrate Technology in implementation and execution of the Scheme, the Govt. of India has designed and developed a National Crop Insurance Portal. States adopt the technology, such as satellite and UAV remote sensing, for various applications such as resolution of area discrepancy and yield disputes and also promote the use of remote sensing and other related technology for Crop Cutting Experiment planning, Yield estimation, loss assessment, assessment of prevented sowing and clustering of districts.

Increased Farmer Awareness

To increase the farmer coverage under this PMFBY scheme, efforts are made to create farmer awareness by using various marketing techniques so that maximum number of farmers can enroll and avail benefits of the scheme.

Click to know more about Krishi Kalyan Abhiyan Phase II marketing & awareness programme.

Marketing Collaterals

For Uttar Pradesh

Uttar Pradesh Rabi 2018-19 - Allahabad
Uttar Pradesh Rabi 2018-19 - Shahjahanpur
Uttar Pradesh Rabi 2018-19 - Amroha
Uttar Pradesh Rabi 2018-19 - Maharajganj
Uttar Pradesh Rabi 2018-19 - Mathura

For Rajasthan

Rajasthan Rabi 2018-19 - Sirohi
Rajasthan Rabi 2018-19 - Kota
Rajasthan Rabi 2018-19 - Jalore
Rajasthan Rabi 2018-19 - Ajmer

Enrolment Sources

• Through Banks
• Through CSCs
• Direct Online
• Through Intermediares
• Through Government (PMFBY) Portal ( Direct enrolment)
• Through Insurance Companies

Enrolment Process Flow

Enrolment through Banks

The loanee Farmers are enrolled only through banks as crop Insurance is mandatory for farmers availing seasonal crop loans through Kisan Credit Cards (KCC) .In case of non-loanee farmers, the farmers may voluntarily take the Insurance cover and can enroll themselves through banks. The Commercial banks, Co-operative banks and the Regional Rural Banks (RRBs) are involved in enrolling the farmers. The Farmer list is uploaded with required details in the PMFBY portal for both loanee and non-loanee farmers. In case of non-loanee farmers the bank needs to submit the hard copies of KYC documents along with the proposal forms. The Insurance companies download the farmers’ data from the portal and proceed with their respective procedures. The premium for loanee farmers is remitted against their agriculture loans and the non-loanee farmers pay their premium upfront.

Enrolment Through CSC (Common Service Centre ) and Intermediaries

The enrolment for non-loanee farmers is done through CSC at the CSC centre or through designated channels, other authorized channel partners or insurance intermediaries, approved by the IRDA. The farmer’s KYC and insurance related documents verification is done, post verification, The CSCs and Insurance intermediaries collect requisite premium and remit individual/ consolidated premium to insurance company, accompanied by individual proposal forms and summary details in Declarations/ Listing sheet (MIS), provide soft copy to IA and details of each insured farmer and also upload the data directly to the crop insurance portal. The Insurance companies download the farmers’ data from the portal and proceed with their respective procedures. Documents like land record, sowing certificate, self declaration form etc are taken into account for enrolment based on the requisition by different enrolment sources.

Direct Enrolment by Farmer

The non-loanee farmer may submit insurance proposals personally/ through post to insurance company with requisite premium. Non-loanee farmer can also avail insurance through PMFBY portal designed by Government. However, it is mandatory that non-loanee farmers, personally submitting proposals to insurance company or through crop insurance portal, should have insurable interest and submit necessary documentary evidence as proof (like print copy of application along with remittance of premium). Documents like land record, sowing certificate, self declaration form, Identity proof etc are taken into account for enrolment.

For detailed enrollment process please refer operational guidelines.

Claims Process

The PMFBY scheme operates on an area based approach process and the lowest level of notified area is called the Insurance Unit. To determine the loss of crop, as per operational guidelines, CCE is mandatory and State Govt/UT need to ensure that minimum CCEs are planned and conducted for irrigated and un – irrigated crops separately in such areas.

Following are the stages of crop and risks leading to crop loss which are covered under the scheme.

Policy will be terminated post payment.

Wide Spread Calamities

If ‘Actual Yield’ per hectare of insured crop for the insurance unit (calculated on basis of requisite number of CCEs) in insured season, falls short of specified ‘Threshold Yield’ (TY), all insured farmers growing that crop in the defined area are deemed to have suffered shortfall of similar magnitude in yield. PMFBY seeks to provide coverage against such contingency.

Claims shall be calculated at IU level as per the following formula:

(Threshold Yield – Actual Yield)

_____________________________ X Sum Insured

       Threshold Yield

Where Threshold Yield (TY) for a crop in a notified insurance unit is the average yield of best 5 years from past seven years of that season multiplied by applicable Indemnity Level for that crop

Prevented Sowing

Insurance cover will be provided to farmers in case of widespread incidence of eligible risks affecting crops in more than 75% of area sown in a notified unit at early stage, but not later than 15 days from cut off date for enrolment, leading to total loss of crop or the farmers are not in a position to either sow or transplant the crop.

Cover available for major crops only
Payment will be 25% of sum insured

Mid-Season Adversity

Insurance cover will be provided to the farmers to provide immediate relief in case of adverse seasonal conditions during the crop season viz. floods, prolonged dry spells, severe drought etc., wherein expected yield during the season is likely to be less than 50% of Normal Yield.

Highlights

The quantum of likely losses and the amount of ‘on-account’ payment shall be decided based on the joint survey by Insurance Company and State Govt. officials.
Amount payable would be 25% of the likely claims, subject to adjustment against final claims.
If adversity occurs within 15 days before the normal harvest time, this provision will not be invoked.

Loss Assessment Procedure

On-Account payment would be calculated as per following formula:

                                (Threshold Yield-Estimated Yield) 

                          ___________________________________   × Sum Insured ×25%                                               

                                            Threshold Yield

Post Harvest Losses

Provision has been made for assessment of yield loss on individual plot basis in case of occurrence of hailstorm, cyclone, cyclonic rains and unseasonal rains resulting in damage to harvested crop lying in the field in ‘cut and spread’ / small bundled condition for drying up to maximum period of two weeks(14 days) from harvesting , for sole purpose of drying.

Loss Assessment Procedure

Immediate intimation required (within 72 hours) by the insured farmer
Available for all crops damaged by specified perils, which are left in the field after harvesting in“cut and spread condition”/small bundled conditions for drying up to a period of 14 days from harvest. State Govt. shall also notify the normal harvesting period of each crop

Localised Calamities

The Scheme provided for insurance cover at individual farm level to crop losses due to occurrence of localized perils/ calamities viz. Hailstorm, Landslide, Inundation, Cloud burst and Natural fire due to lightening affecting part of a notified unit or a plot.

For the purpose of indemnification of crop losses due to inundation as localised claim, Inundation is a situation where insured field is covered or submerged by water due to rise in water level by rainwater that has fallen naturally from the sky or from an artesian well or flood water locally and where water stays for prolonged period and causes visible damage to the crop.

Highlights

Only those farmers would be eligible for financial support under this cover who have paid the premium/the premium has been debited from their account before occurrence of the insured peril
If the pay out under area approach (based on CCEs data) is more than localized losses, the higher claims of two will be payable to insured farmers
Percentage of loss would be arrived at by Insurance Company through requisite percentage of sample survey as decided by the Joint Committee of the affected area.

Loss Assessment Procedure

Immediate intimation required (within 72 hours) by the insured farmer.
Intimation must contain details of survey number-wise insured crop and acreage affected.