PRADHAN MANTRI FASAL BIMA YOJANA

Ministry of Agriculture

Launched in April 2016, after rolling back the earlier insurance schemes viz. National Agriculture Insurance Scheme (NAIS), Weather-based Crop Insurance scheme and Modified National Agricultural Insurance Scheme (MNAIS).

Premium: It envisages a uniform premium of only 2% to be paid by farmers for Kharif crops, and 1.5% for Rabi crops. The premium for annual commercial and horticultural crops will be 5%.

Objectives:

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

Farmers to be covered:

All farmers growing notified crops in a notified area during the season who have an insurable interest in the crop are eligible.

Compulsory coverage: The enrolment under the scheme, subject to possession of insurable interest on the cultivation of the notified crop in the notified area, shall be compulsory for following categories of farmers:

  1. Farmers in the notified area who possess a Crop Loan account/KCC account (called as Loanee Farmers) to whom credit limit is sanctioned/renewed for the notified crop during the crop season. and
  2. Such other farmers whom the Government may decide to include from time to time.

Voluntary coverage: Voluntary coverage may be obtained by all farmers not covered above, including Crop KCC/Crop Loan Account holders whose credit limit is not renewed.


Maharashtra has become the first state in the country to integrate its land records with the web portal of the Pradhan Mantri Fasal Bima Yojana (PMFBY). This will help in checking the cases of “over-insurance” — insurance of more land than in possession — as well as insurance of ineligible people.

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