Pradhan Mantri Fasal Bima Yojana: Objective, Eligibility, How to Apply

Table of Contents

• Introduction
• Objectives of Pradhan Mantri Fasal Bima Yojana
• Salient Features of Pradhan Mantri Fasal Bima Yojana
• Premium Subsidy under Pradhan Mantri Fasal Bima Yojana
• Eligibility and Coverage of Crops Under PMFBY
• Risk Coverage under Pradhan Mantri Fasal Bima Yojana
• Exclusions Under the Pradhan Mantri Fasal Bima Yojana
• How to Apply for Pradhan Mantri Fasal Bima Yojana?
• Conclusion

Introduction

Pradhan Mantri Fasal Bima Yojana, often referred to as PMFBY, is a flagship crop insurance scheme launched by the Government of India. The scheme was introduced in 2016 by the Ministry of Agriculture & Farmers Welfare and replaced the erstwhile National Agriculture Insurance Scheme (NAIS). PMFBY aims to provide comprehensive crop insurance coverage to all farmers in the country, including those involved in subsistence farming.

Objectives of Pradhan Mantri Fasal Bima Yojana

PMFBY is designed to achieve several objectives, with the primary focus on providing financial protection to farmers:

• Risk Mitigation: The scheme seeks to protect farmers from financial losses caused by crop damage due to pests, diseases, or natural calamities.
• Financial Security: PMFBY ensures that farmers receive adequate compensation in case of crop loss, preventing them from falling into a debt trap.
• Encouraging Investment: The scheme encourages farmers to invest in modern agricultural practices and technology by offering a safety net.
• Credit Flow: PMFBY promotes the flow of credit to the underlying agriculture sector.

Salient Features of Pradhan Mantri Fasal Bima Yojana

• Under PMFBY, farmers can insure their crops against any loss or damage because of natural calamities, including drought, flood, landslide, hailstorm, etc.
• The scheme provides comprehensive coverage from pre-sowing to post-harvest losses, including coverage for yield losses, losses due to prevented sowing, localised calamities, and post-harvest losses.
• PMFBY provides a single premium rate to farmers for each crop, regardless of their location in the country. This makes crop insurance accessible and affordable to farmers across the country, regardless of their geographical location.
• PMFBY makes extensive use of technology to ensure transparency and efficiency in the crop insurance process.
• The scheme employs remote sensing techniques, GPS, and drones to accurately assess crop loss and damage and speed up the claim settlement process.

Premium Subsidy under Pradhan Mantri Fasal Bima Yojana

PMFBY provides premium subsidies to farmers to make crop insurance affordable and accessible. The premium amount are as follows:

• Farmers to pay 2% premium on Kharif crops. The premium is on sum assured or actuarial rate, whichever is lower.
• Farmers to pay a premium of 1.5% on actuarial rate or sum assured, whichever is lower.
• Farmers pay a 5% premium on sum assured for horticultural and commercial crops.

These low premium rates for farmers will be complemented by the government, ensuring that farmers receive the full insured amount to cover losses resulting from natural disasters. The government subsidy has no upper limit. Even if the balance premium amounts to 90%, the government will cover it.

Eligibility and Coverage of Crops Under PMFBY

All farmers with insurable interest in crops grown in notified areas are eligible to apply for PMFBY. The scheme covers all crops, including:

• Oilseeds
• Food Crops like pulses, millet, and cereals
• Annual Horticulture / Commercial crops

Risk Coverage under Pradhan Mantri Fasal Bima Yojana

PMFBY functions on the "area approach" principle. It implies that all farmers within a notified area receive coverage for their specific crop(s) and season(s) based on a comprehensive risk assessment.

• Yield-Based Coverage: It provides compensation to farmers for the difference between the actual crop yield and the guaranteed crop yield.
• Prevented Sowing Coverage: In situations where farmers are unable to plant or sow their crops due to unfavourable weather conditions or other uncontrollable factors, this aspect provides compensation.
• Post-harvest Losses: This scheme offers protection against post-harvest losses resulting from cyclones, untimely rains, and other suitable risks.
• Attack by Wild Animals: States may notify add-on coverage for crop losses due to attack by wild animals or vermin.

Exclusions Under the Pradhan Mantri Fasal Bima Yojana

• Willful Negligence: Losses resulting from a farmer's willful negligence or failure to follow recommended agricultural practices are not covered.
• Losses Outside Specified Perils: If the crop loss is attributed to factors not outlined in the scheme, such as malicious activities, fire accidents or theft, it may not fall under the scheme's coverage.
• War or Nuclear Risks: PMFBY does not cover crop losses resulting from war, civil disturbances, or nuclear risks.
• Market Fluctuations: The scheme does not provide coverage for losses arising from market price fluctuations or changes in crop value.
• Improper Storage Facilities: If post-harvest losses result from insufficient storage facilities or mishandling, they might not be included in the coverage.

How to Apply for Pradhan Mantri Fasal Bima Yojana?

In case of crop damage due to natural calamities or any other cause, the farmer needs to intimate the bank or insurance company or agriculture department within 72 hours. For doing so,

• First, farmer need to visit the official website of PMFBY.
• Second, click the Farmer Corner and fill the insurance form.
• Third, in case, you do not have an account on the portal, log in as Guest Farmer. Fill in all the details correctly and click Submit. Your account is created.

Most importantly, you need to fill the insurance form within 10 days of sowing the crop.

Conclusion

Pradhan Mantri Fasal Bima Yojana is a game-changer for Indian agriculture, providing farmers comprehensive crop insurance coverage against natural calamities and other challenges. The scheme has several salient features, including premium subsidies, the use of technology, timely settlement of claims, and a single premium rate, making it accessible and affordable to farmers across the country.

By providing financial protection to farmers, the government hopes to encourage them to adopt modern techniques and technologies for crop production, thus increasing crop productivity and boosting their incomes and livelihoods.