Pradhan Mantri Fasal Bima Yojna, or PMFBY, is a crop insurance scheme launched by the Government of India in 2016. The program was designed to provide financial protection to farmers in the event of crop failure or damage due to natural calamities such as floods, droughts, landslides, hurricanes, pests, diseases or other perils. The scheme also provides insurance coverage for post-harvest losses caused by fire, lightning, storms, and other untoward incidents.
The scheme has been implemented in all states and union territories of India, and it is mandatory for all loanee farmers and voluntary for non-loanee farmers to avail the benefits of this scheme. The government has allocated a budget of Rs. 16,000 crore for this scheme for the financial year 2021-22.
Under PMFBY, farmers have to pay a premium of 2% of the sum insured for Kharif crops, 1.5% for Rabi crops, and 5% for commercial and horticulture crops. The central government bears 50% of the total premium, while the state governments share 50% of the remaining premium. The remaining premium is borne by the farmer.
The sum insured for crops under PMFBY is determined based on the average yield of the last five years from a particular area, taking into account the type of crop and its growing season. The scheme covers all crops grown in the field, excluding plantation crops like coffee and tea.
Farmers can register for the PMFBY scheme through their respective state agriculture departments or authorised crop insurance companies. Farmers are required to provide their Aadhaar card number, mobile number, bank account details and land details while registering for the scheme.
In case of crop damage, farmers are required to inform the insurance company within 72 hours of occurrence of the event. The insurance company then assigns a surveyor to assess the extent of the damage and compensation is given as per the sum insured in the policy.
PMFBY has brought a significant change in the agricultural sector by providing financial security to the farmers. This scheme has helped the farmers to overcome the losses due to natural calamities and to focus on improving farm productivity. It has also encouraged them to adopt modern agricultural practices, thus increasing the agricultural production and crop yield.