Pradhan Mantri Fasal Bima Yojana

Pradhan Mantri Fasal Bima Yojana

About

• The Pradhan Mantri Fasal Bima Yojana (PMFBY) was launched in 2016 to provide voluntary crop insurance to farmers due to unforeseen events. 
• The scheme is administered by the Ministry of Agriculture and Farmers’ Welfare. 
• Crops covered: Food crops; Oilseeds; Annual Commercial/Horticultural crops. 
• Premium: PMFBY follows the principle of “One Nation, One Crop, One Premium”, and there is a uniform premium of 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops. For annual commercial and horticultural crops, the premium to be paid by farmers will be 5%. 
  • The balance premium is shared by the Central and State Government on a 50:50 basis and 90:10 in case of North Eastern and Himalayan States.

• Coverage: The scheme protects farmers from crop losses caused by non-preventable natural risks like droughts, floods, cyclones, hailstorms, pest attacks, and plant diseases.  
  • PMFBY covers the entire crop cycle from pre-sowing to post-harvest and also losses due to localized calamities such as inundation, hailstorm and landslide risks.  
• Exclusions: The scheme excludes losses arising due to war and nuclear risks, malicious damage and other preventable risks. 
• Timely Compensation: PMFBY aims to process claims within two months of the harvest to ensure that farmers get the compensation quickly, preventing them from falling into debt traps. 
• Technology-Driven Implementation: PMFBY integrates advanced technologies like satellite imagery, drones, Unmanned Aerial Vehicle (UAV) and remote sensing for precise estimation of crop loss, ensuring accurate claim settlements.