Coverage of PMFBY: Country Level & State level

Pradhan Mantri Fasal Bima Yojana (PMFBY) aims for giving support to the sustainable development in Agricultural sector to provide compensation to the farmers who are suffering crop loss/damage caused due to unavoidable circumstances and to stabilize the source of earning of the farmers to ensure their continuance in agriculture, to encourage them to adopt innovative and latest agricultural techniques.

It ensures the flow of credit to the agricultural economy which will accredit to food security, crop diversification, and enhancing production and competitiveness of the agriculture sector. It also helps in protecting farmers from any type of risks like natural calamity and others.

Coverage of Farmers on PMFBY:

All farmers (Lonaee and Non-Lonaee Both) including peasant farmers and crofters are growing the notified crops in the notified areas are eligible for coverage. However, farmers should have an insurable interest in the insured crops. The non-loanee farmers are required to submit necessary details evidence of land records prevailing in the State Records of Right (RoR), Land possession Certificate (LPC), or patta applicable contract/agreement details (in case of crofters/ peasant farmers).

The objective of the Scheme

• Providing financial or economical support to the farmers who are suffering from crop loss/damage by disasters like natural calamities i.e. Landslide, inundation, flood, and drought, etc.

• Encouraging farmers to adopt the creative and latest agricultural technologies to enhance crop yields.

• Stabilizing the source of income of the farmers to ensure their interest in continuing farming.

• Secured the flow of credit to the agricultural category, which will contribute to food safety, crop variation, and increasing growth and protecting farmers from production risks.

Details of the Scheme

• Pradhan Mantri Fasal Bima Yojana (PMFBY) is compulsory for Loanee farmers and optional for non-loanee farmers.

• Insurance Unit (Notified Area) is Village or Village Panchayat.

• For the farmers, the premium rate for Kharif Season is 2%, Rabi Season 1.5% and for Commercial / Horticultural crops 5% on Sum Insured is fixed in this scheme.

Preconditions for Implementation of the Scheme

• Claims must be settled on the basis of Yield data.

• The state has to conduct an estimated number of Crop Cutting Experiments (CCE) at the level of notified insurance unit area which has been done by the Department of Economics & Statistics (DES).

• With the help of Continuous and Comprehensive Evaluation (CCE) based yield data this will be submitted to the insurance company within the prescribed deadline.

• The state will make its own necessary budgetary provision in the State budget to release premium subsidy based on fair estimates at the beginning of the crop season.

• Use of smartphone & Mobile application in conducting for CCE for early calculation & settlement of admissible claims to the farmers under PMFBY in a transparent manner.

Implementation of the Scheme:

The Scheme shall be implemented through a multi-agency framework by selected insurance companies under the overall guidance & control of the Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW), Ministry of Agriculture & Farmers Welfare (MoA&FW), Government of India (GOI) and the concerned State in coordination with various other agencies; viz Financial Institutions like Commercial Banks, Co-operative Banks, Regional Rural Banks and their regulatory bodies, Government Departments viz. Agriculture, Co-operation, Horticulture, Statistics, Revenue, Information/Science & Technology, Panchayati Raj etc.