PM Fasal Bima Yojana: Crop Insurance

Pradhan Mantri Fasal Bima Yojana (PMFBY) is a flagship crop insurance scheme launched in 2016 by the Ministry of Agriculture and Farmers Welfare. The scheme provides affordable crop insurance to farmers against crop failure due to natural calamities, pests and diseases. It aims to stabilize farm income and encourage farmers to adopt modern agricultural practices by reducing their financial risk.

Coverage

The scheme covers all food crops, oilseeds and annual commercial or horticultural crops. It provides coverage against yield losses due to natural fire, lightning, storm, hailstorm, cyclone, typhoon, flood, inundation, drought, dry spells, pests and diseases. Post-harvest losses are also covered for up to 14 days.

Premium

The premium rates are very affordable: 2% of sum insured for Kharif crops, 1.5% for Rabi crops and 5% for annual commercial or horticultural crops. The difference between the premium paid by farmers and the actual premium is shared by the central and state governments.

Eligibility

All farmers who have a loan from financial institutions are covered compulsorily. Non-loanee farmers can also voluntarily enroll. Tenant farmers and sharecroppers with valid land records are eligible.