Pradhan Mantri Fasal Bima Yojana

Objective of the Scheme

Pradhan Mantri Fasal Bima Yojana 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 & modern agricultural practices.
Ensuring flow of credit to the agriculture sector which will contribute to food security...
Ensures competitiveness of agriculture sector
Protects farmers from production risks
Service Tax is exempted for this scheme
PMFBY

Implementation of PMFBY by IFFCO-Tokio in India

What it covers?

The scheme provides Insurance coverage to all Farmers for their crops as notified by the State Government:

  • All farmers including sharecroppers and tenant farmers growing the notified crops in the notified areas are eligible for coverage.
  • Farmers should have insurable interest for the notified/ insured crops.
  • Non-loanee farmers are required to submit necessary documentary evidence of land records prevailing in the State such as Records of Right (RoR), Land possession Certificate (LPC), etc. and/ or applicable contract/agreement details/ other documents notified as permitted by the concerned State Government (in case of sharecroppers/ tenant farmers).

Coverage of Risks and Exclusions

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

  • Prevented Sowing/ Planting Risk: If more than 75% of a notified crop area in an insurance unit remains unsown, or there is germination failure during sowing period due to adverse weather conditions such as deficit rainfall or adverse seasonal conditions, then the farmers are eligible for preventing sowing failure risk. The payout to insured farmers under this cover would be 25% of the sum insured and the insurance cover will be terminated.
  • 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 and Diseases, Landslides, Natural Fire and Lightening, Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane and Tornado.
  • Post-Harvest Losses: Coverage is available only upto a maximum period of two weeks (14 Days) from harvesting, for those crops which are required to be dried in cut and spread / small bundled condition in the field after harvesting, against specific perils of Hailstorm, Cyclone, Cyclonic rains and Unseasonal rains. Assessment of damage will be made on individual farm basis.
  • 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.