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What is Pradhan Mantri Fasal Bima Yojana (PMFBY)

Pradhan Mantri Fasal Bima Yojana aims to provide insurance and financial support to the farmers under the uncertain crop failure due to natural calamities, pests and diseases.

  • Aug 11, 2022

Pradhan Mantri Fasal Bima Yojana is a government scheme introduced by the Ministry of Agriculture & Farmers Welfare, New Delhi, in the Kharif 2016 season. The national insurance company started participating in this scheme from Rabi 2016 onwards. This new crop insurance scheme is introduced with the theme of one nation, one plan. The Pradhan Mantri Fasal Bima Yojana has replaced the existing two schemes National Agricultural Insurance Scheme and the Modified NAIS.

Keep scrolling to know more about what is Fasal Bima Yojana.

Objective of PMFBY

Below mentioned are some of the objectives of the Pradhan Mantri Fasal Bima Yojana:

  • Stabilize farmer’s income.
  • Encourage the farmers to adopt modern agricultural practices.
  • Ensure flow of credit to the agricultural sector.
  • Offer framers insurance coverage and financial support.

Pradhan Mantri Fasal Bima Yojana Benefits

Below mentioned are some of the benefits of the PMFBY:

  • Uniform Premium Rate

The premium rate charged for PMFBY stays uniform for all farmers.

  • High Coverage at a Low Premium Price

The premium charged by the farmer is very low. The government takes care of the remaining amount during uncertain times. Thus, the farmers can easily avail extensive coverage at a lower premium.

  • Use of Technology

Modern technology is used to capture and upload loss/damage data, which helps reduce the delay of claim settlements.

  • Loss Assessment

In adverse weather conditions, crop losses are assessed on an individual plot basis.

Coverage Offered by the PMFBY Scheme

Farmers Covered Under the PMFBY Scheme

Under the PMFBY scheme, all the farmers growing notified crops in a specified area having an insurable interest are eligible for this scheme. Earlier to Kharif 2020, enrollment under the plan was compulsory for the following categories of farmers:

  • Farmers who are in the notified area that possess a Crop Loan account to whom the credit limit is sanctioned
  • Other farmers whom the government may decide to include from time to time.

Crops Covered Under the PMFBY Scheme

The following crops are covered under the Pradhan Mantri Fasal Bima Yojana:

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

Risk Covered Under PMFBY Scheme

In this scheme, financial support is offered to the farmers under the following uncertain conditions:

  • For non-preventable risks like Natural Fire and Lightning, Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood, Inundation and Landslide, Drought, Dry spells, Pests/ Diseases, a comprehensive risk coverage is offered to the farmers to cover the yield losses.
  • If the insured farmer having the intent to sow/plant is prevented from doing so due to adverse weather conditions, then the farmer will be eligible for claims upto 25 per cent of the sum insured.
  • With the post-harvest losses, coverage to the farmers will be available for up to 14 days from the harvesting period.
  • Losses arising from identified localized risks like hailstorms, landslides, and inundation affect isolated farms in the notified area.

How to Enroll on PMFBY Scheme?

Both the Loanee and Non-Loanee farmers are to be enrolled in the National Crop Insurance Portal (NCIP) belonging to the Ministry of Agriculture & Farmers Welfare, New Delhi. Banks’ lending Seasonal Crop Loans to the farmers are responsible for uploading the data to the NCIP.

In the case of Non-loanee farmers, the intermediaries, Common Service Centers (CSCs), farmers, and other agencies must upload the data in the NCIP, along with uploading the required documents.

The premium must be paid by NEFT only, and DD or Cheques are not accepted. Similarly, offline applications for enrollment are not accepted as every application needs to be filled in online.

While a farmer must enroll for PMFBY to stay financially secure and safe under the uncertain environment, they should also understand the nitty-gritty of the scheme well before making the investment. Farmers should be aware that the Government of India will release operational guidelines and modalities to implement the scheme’s provisions, which may be appended from time to time. These guidelines and modalities will include specific steps and processes, applicable terms and conditions, roles and responsibilities of the various agencies involved in the scheme’s execution, and roles and responsibilities of other relevant stakeholders. Additionally, the concerned States and Union Territories will thoroughly watch the agricultural situation during each crop season.

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- A Consumer Education Initiative series by Kotak Life

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