Pradhan Mantri Fasal Bima Yojana (PMFBY) is a crop insurance scheme introduced by the Government of India to provide insurance coverage and financial support to farmers in case of crop failure due to natural calamities, pests & diseases. Pradhan Mantri Fasal Bima Yojana introduction
Pradhan Mantri Fasal Bima Yojana (PMFBY) is an agricultural insurance scheme launched by the Government of India in 2016. It is aimed at providing financial support to farmers in case of crop failure due to natural calamities, pests & diseases. The scheme aims to reduce the financial burden on farmers and increase their confidence in adopting new and innovative farming practices.
Under PMFBY, farmers can insure their crops with a low premium, with the government and the farmer sharing the premium amount. In case of crop loss, farmers can claim compensation up to the sum insured, which can be based on the actual cost of production or the market value of the crops.
The main objectives of Pradhan Mantri Fasal Bima Yojana (PMFBY) are as follows:
1. To provide financial support to farmers in case of crop failure due to natural calamities, pests & diseases.
2. To reduce the financial burden on farmers and increase their confidence in adopting new and innovative farming practices.
3. To improve the agricultural insurance coverage and penetration in the country.
4. To provide a simple and affordable insurance solution to farmers, especially small and marginal farmers.
5. To ensure timely compensation to farmers in case of crop loss, which will help them in managing their finances and reduce their stress levels.
6. To encourage the participation of private insurance companies in the agricultural sector, which will improve the overall insurance coverage and services in the country.
7. To improve the overall credit culture in the agricultural sector, by ensuring that farmers have access to credit even in case of crop loss.
By achieving these objectives, PMFBY aims to improve the economic stability of farmers and make agriculture a more viable and sustainable profession in India.
Under the Pradhan Mantri Fasal Bima Yojana (PMFBY) scheme, the following risks and perils are covered:
1. Yield Loss: Loss of yield due to natural calamities such as drought, flood, hailstorm, cyclone, typhoon, tornado, and landslide.
2. Post-Harvest Loss: Loss of produce due to natural calamities such as cyclone, typhoon, and unseasonal rain, which occurs after harvesting and before threshing.
3. Localized Calamities: Loss of crops due to specific localized risks such as hailstorm, landslide, and inundation, which are not covered under comprehensive insurance policies.
1. Non-preventable Risks: Losses due to factors such as old age, wilting, etc., which are beyond the control of the farmer.
2. Loss of Produce due to Natural Calamities, which are not covered under the scheme, such as war, nuclear hazards, etc.
3. Losses due to Crop Disease and Pests: Losses due to pests and diseases, which can be prevented by taking adequate measures.
4. Losses due to Human Negligence: Losses due to human negligence such as theft, fire, etc.
5. Losses due to Flood caused by Breaking of Embankments: Losses due to flood caused by the breaking of embankments, dams, and other structures.
It is important to note that the terms and conditions of the PMFBY scheme may vary from state to state and from insurance company to insurance company. Hence, farmers are advised to carefully read the policy document and understand the coverage and exclusions under the scheme before enrolling.
1. What is Pradhan Mantri Fasal Bima Yojana (PMFBY)?
Pradhan Mantri Fasal Bima Yojana (PMFBY) is a crop insurance scheme introduced by the Government of India to provide insurance coverage and financial support to farmers in case of crop failure due to natural calamities, pests & diseases.
2. Who is eligible for PMFBY?
All farmers, including small and marginal farmers, who have taken loans for agriculture from financial institutions are eligible for PMFBY.
3. What crops are covered under PMFBY?
PMFBY covers most of the food and cash crops including paddy, wheat, maize, pulses, oilseeds, and horticultural crops.
4. What is the premium under PMFBY?
The premium under PMFBY is very low and is shared between the farmer and the government. The premium for food crops is 2% and for oilseeds and pulses it is 5%. The government pays the remaining premium.
5. How can I claim compensation under PMFBY?
In case of crop loss due to natural calamities, pests & diseases, farmers can claim compensation under PMFBY by submitting a claim to the insurance company. The claim process is simple and the compensation is provided in a timely manner.
6. How much compensation is provided under PMFBY?
The compensation provided under PMFBY is up to the sum insured. In case of complete crop loss, the farmer will be eligible for the full sum insured.
7. Is there any cap on the sum insured under PMFBY?
No, there is no cap on the sum insured under PMFBY. The sum insured can be based on the actual cost of production or the market value of the crops.
8. How can I enroll for PMFBY?
You can enroll for PMFBY through your nearest bank or insurance company. You can also visit the official PMFBY website for more information.
9. What documents are required for PMFBY enrollment?
The following documents are required for PMFBY enrollment:
10. Is PMFBY mandatory for farmers?
No, PMFBY is not mandatory for farmers. However, farmers who have taken loans for agriculture from financial institutions are required to enroll for PMFBY.
I hope this answers some of your questions about PMFBY. If you have any further questions, feel free to ask.
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