Pradhan Mantri Fasal Bima Yojana

Agriculture provides livelihood to more people in India than all other sectors put together. Agriculture production is highly volatile due to risks of uncertain weather, large rain fed area, incidence of pests and diseases. Pradhan Mantri Fasal Bima Yojana (PMFBY) provides comprehensive coverage to the farmers against the many such unforeseen crop losses.

Objectives of the Scheme
To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests & diseases.

To stabilize the income of farmers to ensure their continuous process in farming.

To encourage farmers to adopt innovative and modern agricultural practices.

To ensure flow of credit to the agriculture sector.

Salient Features

Uniform Premium: Farmers need to pay only maximum of 2% on Sum Insured as premium for all Kharif crops and maximum of 1.5% for all Rabi crops. In case of annual commercial and horticultural crops, the premium to be paid will be only maximum of 5%.

Low Premium and High Coverage: The farmer share of premium is very low and balance premium will be paid by the Government. Coverage of full Sum Insured is available to the farmers against specified crop losses.

Significant Use of Technology: Mobile Technology using Smart phones, Remote sensing using satellite data, Aerial study using Drone and GPS technologies will be used to capture and upload data of crop cutting to reduce the delays in the claim payment.

Government Of India's National Agriculture Portal: Complete information about scheme and beneficiary data is integrated and easily accessible on a single portal.

Implementing Agency (IA): Beneficiary enrolment, awareness generation and claims servicing for the season and Cluster (a combination of Districts) is handled by only one Insurance Company