PRADHAN MANTRI FASAL BIMA YOJANA (PMFBY)

INTRODUCTION

Pradhan Mantri Fasal Bima Yojana (PMFBY) was launched from Kharif 2016 with 
aim to support production in agriculture by providing an affordable crop insurance 
product to ensure comprehensive risk cover for crops of farmers against all non
preventable natural risks from pre-sowing to post-harvest stage. The Scheme has 
completed 16 crop seasons and is being implemented across States/Union 
Territories UTs www.pmfby.gov.in 

Objective

• PMFBY aims at supporting sustainable production in agriculture sector by way of:
• 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 credit worthiness of the farmers, crop diversification and enhancing growth 
  and competitiveness of agriculture sector besides protecting the farmers from 
  production risks. 
• Promoting innovation & research of insurance and allied products so-as-to offer 
  expanded choice to the farmers and the State Governments/UT Administrations. 

COVERAGE OF FARMERS

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 on the insured crops and lands. Such farmers are required to submit 
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 
Governments/UT Administrations pertaining to sharecroppers/tenant farmers and 
the same should be defined by the respective States/UTs in the notification itself. 
Tribal farmers and forest dwellers having cultivation in forest land under FRA are also allowed 
to be insured under the scheme. The farmers cultivating community owned land especially 
as is practiced in NER states are also allowed to be covered under the scheme with 
certification from village head or revenue authorities. All such farmers are also required to 
essentially submit Aadhaar Number and declaration about the crop sown/ crops 
intended to be sown.

Coverage of Crops

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

In addition, pilots for coverage can be taken up for those perennial 
horticultural/commercial crops for which standard methodology for yield estimation 
or correlation between weather condition and yield/output is available.  

Other crops including plantations crops may also be included in the scope of scheme 
subject to approval of respective ministries of Govt. of India. A separate communication shall be issued by the GoI as and when such inclusions are required 
and approved. 

Coverage of Risks and Exclusions 

• Basic Cover: The basic cover under the scheme covers the risk of yield loss to 
  standing crops (sowing to harvesting). This comprehensive risk insurance is 
  provided to cover yield losses on an area-based approach basis, against non
  preventable risks like drought, dry spells, flood, inundation, wide-spread pest and 
  disease attack, landslides, natural fire due to lightening, storm, hailstorm, and 
  cyclone. 
  
• Add-On Coverage: Apart from the mandatory basic cover, the State 
  Governments/UT Administrations, in consultation with the State Level Coordination 
  Committee on Crop Insurance (SLCCCI) may choose any or all of the following add
  on covers, based on the need of the specific crop/area in their State/UT to cover the 
  following stages of the crop and risks leading to crop loss. 
  
• Prevented Sowing/Planting/Germination Risk: Insured area is prevented from 
  sowing/planting/germination due to deficit rainfall or adverse seasonal/climatic 
  conditions. 
  
• Mid-Season Adversity: Loss in case of adverse seasonal conditions during the crop 
  season viz. floods, prolonged dry spells and severe drought etc., wherein expected 
  yield during the season is likely to be less than 50% of the normal yield. This add-on 
  feature facilitates the provision for immediate relief (On- Account payment) to 
  insured farmers in case of occurrence of such risks. 
  
• Post-Harvest Losses: Coverage is available only up to a maximum period of two 
  weeks from harvesting, for those crops which are required to be dried in cut and 
  spread / small, bundled condition depending on requirement of the crops in that area 
  and left in the field after harvesting, against specific perils of hailstorm, 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. 

Digitization of Land Records 

Under the Central Sector Scheme of Digital India Land Record Modernization Program (DILRMP), majority of the State/UTs have digitized their land records. To address the problems of over insurance and acreage discrepancy, State/UTs are strongly advised to integrate their digitized land records with the NCIP so that the individual land records of farmers can be accessed through the NCIP for crop insurance and the insured area be validated. This will help the Government to reach and identify individual beneficiaries and bring utmost transparency and authenticity in providing scheme benefits to the genuine beneficiaries as per their eligibility norms in the right spirits of provisions of the Operational Guidelines.