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Pradhan Mantri Fasal Bima Yojana

link to PMFBY website

At Chola MS, we recognize that agriculture forms a big part of the socio-economic fabric of our nation. We firmly believe that contributing towards the development and benefit of our rural friends is our social responsibility. Policies that are specific and customised according to their requirements, makes protection of their agricultural assets easy and convenient. And this is why we are proud to have the Pradhan Mantri Fasal Bima Yojana (PMFBY) in our portfolio of offerings.

What is Pradhan Mantri Fasal Bima Yojana (PMFBY) ?
The PMFBY was launched in 2016 and replaces all the prevailing yield insurance schemes in India. The scheme has been launched with an aim to give an impetus to the rural sector. The scheme has extended coverage under localized risks, post-harvest losses etc. and aims at adoption of technology for the purpose of yield estimation. Through increased farmer awareness and low farmer premium rates the scheme aims at increasing the crop insurance penetration in India.
Pradhan Mantri Fasal Bima Yojana (PMFBY) aims at supporting sustainable production in agriculture sector by way of –
  1. Providing financial support to farmers suffering crop loss/damage arising out of unforeseen events
  2. Stabilizing the income of farmers to ensure their continuance in farming
  3. Encouraging farmers to adopt innovative and modern agricultural practices
  4. Ensuring flow of credit to the agriculture sector; which will contribute to food security, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting farmers from production risks.

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 for the notified/insured crops.

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.

Voluntary Component

The Scheme would be optional for the non-loanee farmers.

The non-loanee 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 Govt. in case of sharecroppers/tenant farmers and the same is defined by the respective States in the notification itself.

Sum Insured per hectare for both loanee and non-loanee farmers will be same and equal to the Scale of Finance as decided by the DLTC/SLTC, and would be pre-declared by SLCCCI and notified. No other calculation of Scale of Finance will be applicable. Sum Insured for individual farmer is equal to the SOF per hectare multiplied by area of the notified crop proposed by the farmer for insurance.

Coverage

Crop Coverage

All Food Crops (Cereals, Millets, and Pulses), Oil seeds, Annual Commercial/Horticulture Crops.

Farmer Coverage

  1. Loanee : All farmers availing Seasonal Agricultural Operations (SAO) loans from Financial Institutions (i.e. loanee farmers) for the notified crop(s) would be covered compulsorily.
  2. Non-loanee : All farmers including sharecroppers and tenant farmers growing the notified crops in the notified areas are eligible for coverage, however scheme is voluntary for Non-loanee farmers

Risk Coverage

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

  1. Prevented Sowing/ Planting Risk: Insured area is prevented from sowing/ planting due to deficit rainfall or adverse seasonal conditions
  2. 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.
  3. Post-Harvest Losses: coverage is available only up to a maximum period of two weeks from harvesting for those crops which are allowed to dry in cut and spread condition in the field after harvesting against specific perils of cyclone and cyclonic rains and unseasonal rains.
  4. Localized Calamities: Loss/ damage resulting from occurrence of identified localized risks of hailstorm, landslide, and Inundation affecting isolated farms in the notified area.
  5. General Exclusions: Losses arising out of war and nuclear risks, malicious damage and other preventable risks shall be excluded.

Stake holders

Farmers, Banks, State Government & Central Government, Insurance Companies etc.

Key Features of PMFBY

lowrates

Low Farmer Premium Rates

Farmers, Banks, State Government & Central Government, Insurance Companies etc.

R.No. Season Crops Maximum Insurance Charges Payable by Farmers (% of Sum Insured)
1 Kharif All food grain and Oil seeds crops (all Cereals, Millets, Pulses andOil seeds crops) 2.0% of SI or Actuarial rate, whichever is less
2 Rabi All food grain and Oil seeds crops (all Cereals, Millets, Pulses andOil seeds crops) 1.5% of SI or Actuarial rate, whichever is less
3 Kharif & Rabi Annual Commercial/ Annual Horticultural crops 5% of SI or Actuarial rate, whichever is less

Farmers can calculate the premium using the premium calculator tool of PMFBY portal.

technology

Use of Technology

The new scheme envisages many new things such as utilizing innovative technologies like satellite imagery, vegetation indices etc. coupled with the mandatory usage of smart phones / hand held devices for increasing the speed and accuracy during yield estimation. In order to minimize the area discrepancy in coverage, the scheme also promotes the digitization of land records.

farmer

Increased Farmer Awareness

Efforts are being made to increase the awareness amongst farmers regarding PMFBY so that maximum number of farmers can enroll and avail benefits of the scheme.

coverage

Better Coverage

Pradhan Mantri Fasal Bima Yojana (PMFBY) aims at covering the losses suffered by farmers due to reduction in crop yield as estimated by the local appropriate government authorities. The scheme also covers pre sowing losses, post-harvest losses due to cyclonic rains and losses due to unseasonal rainfall in India. There is a provision to cover losses due to localized calamities such as inundation also in addition to the previously covered hailstorm and landslide risks

Claim Process

If ‘Actual Yield’ (AY) per hectare of insured crop for the insurance unit (calculated on basis of requisite number of CCEs) in insured season, falls short of specified ‘Threshold Yield’ (TY), all insured farmers growing that crop in the defined area are deemed to have suffered shortfall of similar magnitude in yield. PMFBY seeks to provide coverage against such contingency.

What is RWBCIS Policy?

Government has introduced yield based Pradhan Mantri Fasal Bima Yojana (PMFBY) and weather index based Restructured Weather Based Crop Insurance Scheme (RWBCIS) from Kharif 2016 to provide financial support to farmers suffering crop loss/damage due to natural calamities/adverse weather conditions, to stabilize the income of farmers etc. The contours of RWBCIS policy are similar to PMFBY however payout is calculated using the weather parameters.

Chola MS General Insurance in PMFBY/RWBCIS Policies

Season Wise – State Wise:

Season PMFBY RWBCIS
Kharif 2018 Orissa MP
Tamilnadu
Rabi 18-19 Orissa MP
Tamilnadu
Kharif 2017 Bihar MP
Orissa
Telangana Telangana
Rabi 2017-18 MP

Click Here to download Beneficiaries list of previous seasons

Click Here to Download Policy Wording