Coverage of Farmers

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

1. All farmers including sharecroppers and tenant farmers growing the notified crops in the notified areas are eligible for coverage.

2. Farmers should have an insurable interest in the notified/ insured crops.

3. 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).

Compulsory Component 
All farmers availing Seasonal Agricultural Operations (SAO) loans from Financial Institutions (i.e. loanee farmers) for the notified crop(s) would be covered compulsorily. It is mandatory for all loanee cultivators to insist on insurance coverage as per provisions of the Scheme.
1. Non-standard KCC /crop loans shall not be covered compulsorily by the concerned Banks/Govt. regulator. However, bank branches may facilitate such farmers for enrolment as non-loanee farmers
2. Merely, sanctioning of crop loan against other collateral securities including fixed deposits, gold/jewel loans, mortgage loans, etc. without having insurable interest of the farmer on the insurable land and notified crops shall not be covered under the Scheme.

3. Any changes in the insured crop should be brought to the notice of the bank at least 2 working days prior to the cut-off date for enrollment.

4. Insurance Proposals are accepted only up to a stipulated cut-off date as declared by the State Level Coordination Committee on Crop Insurance (SLCCCI).

Voluntary Component 
1. The Scheme is optional for the non-loanee farmers; however cultivators/farmers desirous of availing crop insurance for any notified crop in any notified insurance unit may approach nearest bank branch/ Primary Agriculture Cooperative Societies (PACS)/ Common Service Center (CSC)/ authorized channel partners/ insurance intermediary of insurance company, within cut-off date of enrollment. The cultivator/farmer must fill-up the proposal form completely in prescribed format, submit the proposal form along with requisite premium to bank branch/ Insurance Intermediary/ CSC Centers along with necessary documentary evidence regarding his insurable interest in cultivating land/ crop (e.g. Ownership/ tenancy/ cultivation rights) proposed for insurance.

2. The farmer desiring for crop insurance should have a bank account in any branch of the designated bank, and the details of the bank account should be provided in the proposal form.

3. The farmers should mention their land identification number (Khasra Number) in the Proposal form and must provide documentary evidence with regard to possession of cultivable land. The farmers/cultivators must furnish the area sown confirmation certificate.

4. The farmer should ensure that he/she gets insurance coverage for notified crop(s) cultivated/ proposed to be cultivated, in a piece of land from a single source only. No duplicate or double Insurance is allowed and in any such cases, the farmer will not be eligible for coverage. The insurance company shall reserve the right to repudiate all such claims and not refund the premium as well in such cases.

5. The company may also take legal action against such farmers.

Coverage of Crops
All crops are covered under the scheme such as Food & Oilseeds crops and Annual Commercial/Horticultural Crops for which past yield data is available.
Coverage of Risks and Exclusions
1. The following stages of the crop and risks leading to crop loss are covered under the scheme.
a. 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.
b. 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.
c. Post-Harvest Losses: Coverage is available only up to 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 the damage will be made on an individual farm basis.
d. Localized Calamities: Loss/damage to notified insured crops resulting from the occurrence of identified localized risks of Hailstorm, Landslide, Inundation, Cloud burst and Natural fire due to lightening affecting isolated farms in the notified area.
 
2. General Exclusions: Losses arising out of war and nuclear risks, malicious damage, and other preventable risks shall be excluded.
Note: Crop damage or yield loss for localized calamities and post-harvest losses will be assessed on the basis of individual insured farm level and hence lodging of loss information by farmer/designated agencies is essential. For remaining risks losses are due to widespread calamities. Hence lodging of information for claims by insured farmers / designated agencies for such wise spread calamities is not essential. Claims will be calculated based on the loss assessment report/average yield submitted by concerned State Govt.
 
Indemnity level applicable for different crops
Three-level of indemnity levels viz., 70%, 80% and 90% corresponding to the high, moderate and low-risk level of areas shall be applicable for all crops.
Premium Rates and Premium Subsidy
The Actuarial Premium Rate (APR) would be charged under PMFBY by implementing the Insurance Company. The rate of premium payable by the farmer will be as per the following Table:

Season

Crops

Maximum Premium payable by farmer (% of Sum Insured)

Kharif

All food grain and Oilseeds crops (all Cereals, Millets, Pulses and Oilseeds crops)

2.0% of SI or Actuarial rate, whichever is less

Rabi

All food grain and Oilseeds crops (all Cereals, Millets, Pulses, and oilseeds)

1.5% of SI or Actuarial rate, whichever is less

Kharif and Rabi
 

Annual Commercial/ Annual Horticultural crops

5% of SI or Actuarial rate, whichever is less

Perennial Horticultural crops (pilot basis)

5% of SI or Actuarial rate, whichever is less

Note: The seasonality discipline shall be applicable for loanee and non-loanee farmers as defined in the State Government notification and farmers need to necessarily enroll before the specified cut off dates applicable for the respective crop in the season.
Basis of Claim intimation and settlements
Claims in the scheme shall be settled based on the Area approach and Individual farm level.
Area Approach basis Claim
The claims payout would be made on the basis of Area Approach, subject to the following:
1. The state has to conduct a requisite number of Crop Cutting Experiments (CCEs) at the level of notified insurance unit area and the CCE based yield data will be submitted to the insurance company within the prescribed time limit to calculate the claims payable based on the respective notified insurance unit area.
2. Crop Cutting Experiments (CCE) shall be undertaken per unit area /per crop, on a sliding scale, as prescribed under the scheme outline and operational guidelines.
3. The Threshold Yield (TY) shall be the benchmark yield level at which Insurance protection shall be given to all the insured farmers in an Insurance Unit.  Threshold Yield of the notified crop will be moving average of yield of last seven years excluding yield up to two notified calamity years multiplied by Indemnity level.
 
 
Individual Approach basis Claim
For the claims arising out of crop damage due to post-harvest losses and localized risks, assessment of damage will be made on an individual farm basis.
1. Post-Harvest Losses
Individual plot/farmer basis crop yield loss assessment would be done 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. For the purpose of indemnification of post-harvest crop losses, unseasonal rains shall be triggered when the excess rainfall is more than 20% over long period average over the month for that district subject to confirmation of the damage in the Joint crop-loss survey to be conducted by concerned State Govt. and Insurance Company.
1.1. Time and method of reporting the crop loss/damage
a. Crop loss Intimation may be given within 72 hours by farmer either directly to the insurance company, concerned bank, local agriculture department Govt. /district officials or through a toll-free number.
b. Intimation must contain details of survey number-wise insured crop and acreage affected.
c. Premium payment verification to be done from the portal and if needed, maybe verified from the bank and the bank shall provide the payment verification within the next 48 hours of receipt of such request.
2. Localized Risks
Individual plot/farmer basis crop loss/damage assessment would be done in case of the occurrence of localized perils/ calamities viz. Hailstorm, Landslide, Inundation, Cloud burst and Natural fire due to lightning, affecting part of a notified unit or a plot.
Note: For the purpose of indemnification of crop losses due to inundation as localized 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.
a. Crop damage should have occurred on account of inundation, mere waterlogging without corresponding crop loss will not be considered
b. Inundation peril is not applicable in the case of hydrophilic crops like Paddy, Sugarcane Jute & Mesta.
2.1. Time and method of reporting the crop loss/damage
1. Crop loss Intimation may be given within 72 hours by farmer either directly to the insurance company, concerned bank, local agriculture department Govt./district officials or through a toll-free number.
2. Intimation must contain details of survey number-wise insured crop and acreage affected.
3. Premium payment verification to be done from the portal and if needed, maybe verified from the bank and the bank shall provide the payment verification within the next 48 hours of receipt of such request.
 
 
IMPORTANT NOTE:
1. Farmers can enroll under the scheme via their bank branches, nearest CSC Centers or insurance intermediary as authorized by IRDA. 
2. All enrolments need to necessarily be completed within the cut-off date as defined in the respective State Government notification and farmer share of premium duly remitted by the Bank or Intermediary within the cut-off date to the Insurance Company. 
3. In case the farmer changes the crop to be sown, he should intimate the change to concerned banks at least 2 working days prior to cut-off-date. In case the premium paid was higher, the insurance company will refund the excess. 
4. In case of Tenant/ share farmers obtaining coverage necessary documentary evidence of land records prevailing in the State (Records of Right (RoR) Land possession Certificate (LPC) etc.) and/ or applicable contract/agreement details/ other documents notified/ permitted by concerned State Government should be provided at the time of enrolment. 
5. Service Tax is exempted from this scheme.
 
Claim Process
For any losses arising out of the post-harvest or Localised calamity, farmer should contact our company and intimate the loss within 72 hours of the event occurring along with survey number-wise insured crop and acreage affected and the Premium payment verification details as given to the Bank / Intermediary / CSC centers. Local Newspaper cutting and any other available evidence to substantiate the occurrence of loss event and severity of the loss, if any should also be provided as applicable.
 
1. Farmers can reach out to us on 1800 103 5490 and update as soon as the loss has occurred.
2. Farmers can also reach out to the District Agriculture Officer (DAO) and our representative will be intimated by the DAO office.
Farmers can also reach out to their respective Banks.