Pradhan Mantri Fasal Bima Yojana

The PRADHAN MANTRI FASAL BIMA YOJANA, also known as (PMFBY) scheme, was launched by the Ministry of Agriculture and Farmers Welfare in New Delhi. Prime Minister Narendra Modi started the scheme on the 18th of February 2016, from the Kharif season onwards. 

Pradhan Mantri Fasal Bima Yojana also received participation from the National Insurance Company(NIC) from the Rabi season onwards in 2016. During the past five seasons, within 2016-2017, Rabi 2016-2017, Kharif and Rabi 2017 and Kharif and Rabi 2018, it covered eight states and two union territories, covering up to 70,27,637 farmers. 

It is an insurance service for farmers for their yields that aims to reduce the premium burden on them and ensure early settlement of crop assurance claims for the total insured sum. It gives a comprehensive insurance cover against crop failure and helps stabilize the farmers’ income. It covers all food and Oilseed crops and Annual Commercial or Horticulture crops whose past yield data is available. 

The scheme was earlier compulsory for loanee farmers availing Crop Loan or KCC account for notified crops and voluntary for others but has been voluntary since 2020 when reforms in the scheme were introduced. Now the scheme is being administered by the Ministry of Agriculture and Farmers Welfare. 

The objective of the Pradhan Mantri Fasal Bima Yojana Scheme 

The Pradhan Mantri Fasal Bima Yojana scheme’s main aim is to support sustainable agriculture production in the following ways:

● The farmers get financial support and insurance coverage in case of failure of any of the crops notified due to pests, natural calamities and diseases.

● To ensure the flow of credit to the agricultural sector. 

● To establish the continuation of farming by stabilizing their income.

● To encourage the farmers to adopt some innovative and modern agricultural practices. 

● 2% uniform premium is paid by the farmers for all the Kharif crops and 1.5% for all the Rabi crops. In the case of annual commercial and horticulture crops, the premium is 5%. The premium rate to be paid by the farmers is very low, and the Government will pay the balance premium to provide a fully insured amount to the farmers against crop loss for natural calamities.

● Earlier, a provision for capping the premium rate resulted in low claims paid to the farmers. This capping has been removed, and farmers will get a lawsuit against the entire sum insured without any reduction. 

● There is no upper limit on Government subsidies. The Government will also pay a 90% balance premium. 

● It is a replacement scheme for NAIS/MNAIS. We get to see exemption from Service Tax liability of all the services involved in its implementation. Estimates say that this scheme will ensure about 75-80% of subsidy for the farmers in insurance premiums. 

Eligibility for Pradhan Mantri Fasal Bima Yojana 

All farmers, including the sharecroppers & tenant farmers, can grow the notified crops in their declared areas which are eligible for coverage. Although, farmers should have an insurable interest for their notified or insured crops. 

The non-loanee farmers must submit necessary documentary evidence of their land records for prevailing in the State Records of Rights (RoR), Land Possession Certificate (LPC), etc. And applicable for contract or agreement details or other documents notified or permitted by the concerned State Government (in case the farmers are sharecroppers or tenant farmers). 

All farmers applying for Seasonal Agricultural Operations (SAO) loans from Financial Institutions, i.e. loanee farmers for their notified crops, would be covered positively. 

What documents are required for the Pradhan Mantri Fasal Bima Yojana scheme? 

The loanee farmers will contact their banks for Insurance under the Pradhan Mantri Fasal Bima Yojana scheme. And the Non-loanee farmers are required to submit necessary documents, which shall be required to scan and uploaded to complete the farmer registration. 

The required documents for applying in Pradhan Mantri Fasal Bima Yojana:

● The Land record or Land Proof of their farming land will show the farmer’s or his father’s name along with his name. 

● For the Tenant Farmer or sharecroppers, the concerned State Government will permit the applicable contract, agreement details, or other documents. If the farmer didn’t show any documents allowed by the State Government, they could write a self-declaration statement. 

● The bank passbook of the farmer and a cancelled cheque.

● The Sowing Certificate: Farmers can get this Certificate from Patwari, sarpanch, or Pradhan from their Taluka, Tehsil, or Block office. 

What are the benefits of Pradhan Mantri Fasal Bima Yojana? 

● Pradhan Mantri Fasal Bima Yojana scheme provides insurance coverage against crop loss because of non-preventable natural risks. And helping in stabilizing the income of the farmers and encouraging them to adopt new practices. 

● The area which is approached for settlement should claim for widespread damage. A Notified Insurance unit has been brought down to the Village or the Village Panchayat for significant crops. 

● Removal of any provision of rounding off on premium will lead to a depletion in the sum of insured crops to clear the way for farmers and to get a claim against the entire sum insured without any depletion. 

● The Individual farm level assessment and settlement should claim for the localized disaster of hailstorms, landslides, cloud Burst and Natural Fire. The post-harvest losses are due to cyclones or unseasonal rains. And hailstorms for the crops were kept in the field for up to 14 days throughout the country. 

● A provision for claiming up to 25% of the sum insured for sowing.

● An Insurance Portal for crops has been developed to ensure good administration, coordination, transparency, and delivery of services, including crediting the claim amount to the individual farmer’s bank Account. 

How to apply for the Pradhan Mantri Fasal Bima Yojana scheme? 

The farmers who want to grow their crops can register themselves on the official website of the Pradhan Mantri Fasal Bima Yojana scheme. So, here are the steps how the farmers can apply for the Pradhan Mantri Fasal Bima Yojana scheme: 

● Go to the official website of Pradhan Mantri Fasal Bima Yojana – 

● Then click on the Farmers corner on the homepage of the website.

● Now, the farmers must log in with their respective mobile numbers. If they don’t have an account, log in as Guest Farmer on the website. 

● Then enter all required details like name, address, age, state, bank passbook details, etc. 

● Finally, click the submit button. 

The farmers must take an insurance policy within ten days of sowing the crop. Pradhan Mantri Fasal Bima Yojana scheme covers the losses incurred within 14 days of harvesting.

The banks offering the Pradhan Mantri Fasal Bima Yojana scheme are SBI PMFBY and HDFC PMFBY

What are the roles and responsibilities of Pradhan Mantri Fasal Bima Yojana? 

● All Common Service Center (CSC) and Village Level Entrepreneur (VLE) have to create awareness about this Pradhan Mantri Fasal Bima Yojana Scheme among all the Non Loanee farmers in their areas. 

● All VLEs also have to positively show two attachments in front of their CSC centres as a part of this awareness. 

● The Common Service Center and Village Level Entrepreneur will or shall not charge any additional or extra amount from the farmer except the premium amount displayed in the Crop Portal. 

● The insured area for farming should be in Hectare measurement. The CSC or VLEs can convert the farmer’s land with the help of the website available on the Internet:

● Loanee Farmers will contact their respective banks for Insurance under the Pradhan Mantri Fasal Bima Yojana scheme. 

The coverage of Risks and Exclusions of Pradhan Mantri Fasal Bima Yojana The following phrase of the crop and risks leading to crop loss are covered under this scheme: 

● The insured area should be prevented from sowing or planting due to less rainfall or adverse seasonal conditions. This falls under Preventing Sowing or Planting Riskog the crops. 

● The risk to insure is provided to cover yield loss due to non-preventable risks, i.e. drought, Flood, pests & diseases, landslides and lightning. 

● After harvesting against the specific danger of a cyclone, cyclonic rains & unseasonal rains, the risk coverage is only available up to a maximum period of 2 weeks from harvesting those crops, which are then allowed to dry & in cut & spread conditions in the field. 

● Losses of crops due to war & nuclear risks, ill-natured damage, & other unnecessary risks shall be excluded. 

Conclusion of Pradhan Mantri Fasal Bima Yojana 

Pradhan Mantri Fasal Bima Yojana targets to support good production in the agriculture sector in the following ways:

● By giving financial support to farmers suffering crop loss or damage from extreme events. 

● Ensuring the flow of the agriculture sector; will contribute to food security, crop diversification, & enhancing growth and competitiveness of the agriculture sector, besides protecting farmers from production risks. 

It can be concluded that the Pradhan Mantri Awas Yojana scheme has significantly impacted the lives of beneficiaries in terms of physical facilities provided and subject well-being. The Government’s entire effort is to ensure clear & timely evolution of the production & quick estimation & payment of claims to the farmers.

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