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Pradhan Mantri Fasal Bima Yojana (PMFBY)

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Pradhan Mantri Fasal Bima Yojana (PMFBY)

About the scheme:

  • Pradhan Mantri Fasal Bima Yojana (PMFBY) scheme was launched in India by Ministry of Agriculture & Farmers welfare in 2016.

Objective of the Schemes:

Pradhan Mantri Fasal Bima Yojana (PMFBY) aims at supporting sustainable production in agriculture sector by way of

  • Providing financial support to farmers suffering crop loss/damage arising out of unforeseen events
  • Stabilizing the income of farmers to ensure their continuance in farming
  • Encouraging farmers to adopt innovative and modern agricultural practices
  • Ensuring flow of credit to the agriculture sector which will contribute to food security, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting farmers from production risks.

Coverage of Crops:

  1. Food crops (Cereals, Millets and Pulses),
  2. Oilseeds
  3. Annual Commercial / Annual Horticultural crops.

In addition for perennial crops, pilots for coverage can be taken for those perennial horticultural crops for which standard methodology for yield estimation is available.

Rate of Premium to be paid by the farmer to Insurance Company:

Type of Crop Kharif Rabi
Food grains including Cereals, Pulses and Oilseeds 2% 1.5 %
Annual Horticulture and Commercial Crops 5%

Coverage of Risks and Exclusions under PMFBY Scheme:

  • Following stages of the crop risks leading to crop loss are covered under the Scheme.
  • Addition of new risks by the State Govt other than the one mentioned below, by the State Govt. is not permitted.
  1. Prevented Sowing/Planting/Germination Risk:
    • Insured area is prevented from sowing/planting/germination due to deficit rainfall or adverse seasonal/weather conditions.
    • 25% of the sum insured will be paid and the Policy will be terminated.
  2. Standing Crop (Sowing to Harvesting):
    • Comprehensive risk insurance is provided to cover yield losses due to non-preventable risks, viz. Drought, Dry spell, Flood, Inundation, widespread Pests and Disease attack, Landslides, Fire due to natural causes, Lightening, Storm, Hailstorm and Cyclone.
  3. Post-Harvest Losses:
    • Coverage is available only upto a maximum period of two weeks from harvesting, for those crops which are required to be dried in cut and spread/small bundled condition in the field after harvesting against specific perils of Hailstorm, Cyclone, Cyclonic rains and Unseasonal rains.
  4. Localized Calamities:
    • Loss/damage to notified insured crops resulting from occurrence of identified localized risks of Hailstorm, Landslide, Inundation, Cloud burst and Natural fire due to lightening affecting isolated farms in the notified area.
  5. Add-on coverage for crop loss due to attack by wild animals:
    • The States may consider providing add- on coverage for crop loss due to attack by wild animals wherever the risk is perceived to be substantial and is identifiable.

General Exclusions: Losses arising out of war and nuclear risks, malicious damage and other preventable risks shall be excluded.

Syllabus : Prelims; Government schemes in news

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