Pradhan Mantri Fasal Bima Yojana (PMFBY)

Anubhav Dwivedi -

Introduction:

  • The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a flagship crop insurance scheme launched by the Government of India, aimed at providing comprehensive risk coverage to farmers. Introduced on February 18, 2016, the scheme seeks to support sustainable agricultural production by ensuring financial stability for farmers in the face of crop failures due to various perils. Implemented by the Ministry of Agriculture & Farmers Welfare, PMFBY is a significant step towards mitigating the adverse effects of climate change and other agricultural risks.

Objective of the Scheme:

The primary objectives of PMFBY are as follows:

  1. Provide financial support: To ensure financial support to farmers in the event of crop failure due to unforeseen natural calamities, pests, and diseases.
  2. Stabilize farmers' income: To stabilize the income of farmers to ensure their continuity in farming.
  3. Encourage adoption of innovative practices: To encourage farmers to adopt modern agricultural practices and ensure high agricultural production.
  4. Ensure flow of credit: To ensure the flow of agricultural credit to the farmers by providing an insurance cover to the loans taken for the notified crops.

Who can be covered?

The PMFBY scheme Crop Insurance is designed to cover all farmers, including:

  • Loanee farmers: Those farmers who have taken loans for the notified crops from financial institutions.
  • Non-loanee farmers: Those farmers who have not taken any loans but opt to voluntarily enroll in the scheme.

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How to Enroll Farmers in the Scheme?

Farmers can enroll in the PMFBY scheme through several methods:

  1. Bank branches: Farmers can visit their respective bank branches and fill out the application form.
  2. Common Service Centers (CSCs): Farmers can enroll through CSCs, which are spread across rural areas.
  3. Insurance agents and intermediaries: Authorized insurance agents and intermediaries can facilitate the enrollment process.
  4. Online platforms: The Ministry of Agriculture & Farmers Welfare has also introduced online platforms and mobile applications for easy enrollment.

Coverage of Crops:

PMFBY covers a wide range of crops across different seasons:

  • Kharif crops: These are sown with the onset of monsoon and harvested in autumn. Common kharif crops include rice, maize, and soybean.
  • Rabi crops: These are sown in winter and harvested in spring. Common rabi crops include wheat, barley, and mustard.
  • Commercial and horticultural crops: The scheme also extends to selected commercial and horticultural crops as notified by the respective state governments.

Rate of Premium to be Paid by the Farmer to Insurance Company:

The premium rates for farmers under PMFBY are highly subsidized to ensure affordability:

  • Kharif crops: Farmers pay 2% of the sum insured or actuarial rate, whichever is lower.
  • Rabi crops: Farmers pay 1.5% of the sum insured or actuarial rate, whichever is lower.
  • Commercial and horticultural crops: Farmers pay 5% of the sum insured or actuarial rate, whichever is lower.

The balance premium is shared by the Central and State Governments on a 50:50 basis to ensure full coverage of the actuarial premium.

Coverage of Risks and Exclusions under PMFBY Scheme:

The PMFBY scheme provides coverage for various risks faced by farmers, including:

  1. Prevented sowing/planting risk: Insurance cover if the farmer is unable to sow the crop due to adverse weather conditions.
  2. Post-harvest losses: Coverage for crops affected by cyclones, cyclonic rains, and unseasonal rains up to two weeks after harvest.
  3. Localized calamities: Insurance for loss/damage due to localized risks like hailstorms, landslides, and inundation affecting isolated farms.
  4. Standing crop (Sowing to Harvesting): Comprehensive risk insurance is provided against natural calamities, pests, and diseases from the sowing period to the harvesting period.

However, the scheme excludes certain scenarios:

  • Losses due to war and nuclear risks.
  • Intentional damage.
  • Theft and clandestine sale of the crop.
  • Damages caused by poor farm management.

How to Intimate the Claim?

Farmers must follow a systematic procedure to intimate a claim under PMFBY:

  1. Immediate notification: Inform the insurance company or local agriculture department within 72 hours of the occurrence of the insured event.
  2. Submission of evidence: Provide required documents and evidence of crop damage, which can include photographs, videos, and farm records.
  3. Field inspection: Insurance company representatives conduct a field inspection to assess the extent of damage.
  4. Claim settlement: Upon verification, the claim is processed and settled directly into the farmer's bank account.

Responsibility of the Farmers:

Farmers play a crucial role in the effective implementation of PMFBY:

  1. Timely enrollment: Ensure timely enrollment in the scheme by paying the premium before the cut-off dates.
  2. Accurate information: Provide accurate information regarding landholding, crop sown, and other relevant details during enrollment.
  3. Proper farm management: Maintain proper farm practices and manage crops diligently to avoid preventable damages.
  4. Prompt claim reporting: Report any crop loss immediately to facilitate timely claim processing.

Conclusion:

  • The Pradhan Mantri Fasal Bima Yojana(Crop Insurance Scheme) is a transformative initiative aimed at protecting the financial interests of farmers by providing comprehensive risk coverage against crop failures. By reducing the burden of agricultural risks, PMFBY encourages farmers to adopt innovative practices and ensures the flow of credit to the agricultural sector. With its wide coverage, affordable premium rates, and streamlined claim process, PMFBY stands as a robust support system for the farming community in India.

FAQs:

What is PMFBY?

  • PMFBY, or Pradhan Mantri Fasal Bima Yojana, is a crop insurance scheme launched by the Government of India to provide financial support to farmers in case of crop failure due to various risks.

Who is eligible for PMFBY?

  • All farmers, including loanee and non-loanee farmers, growing the notified crops are eligible for PMFBY.

What crops are covered under PMFBY?

  • The scheme covers major food crops, oilseeds, and commercial/horticultural crops, including both kharif and rabi seasons.

How can farmers enroll in PMFBY?

  • Farmers can enroll through bank branches, CSCs, insurance agents, intermediaries, and online platforms provided by the Ministry of Agriculture & Farmers Welfare.

What are the premium rates under PMFBY?

  • Farmers pay 2% of the sum insured for kharif crops, 1.5% for rabi crops, and 5% for commercial and horticultural crops. The remaining premium is shared by the government.

What risks are covered under PMFBY?

  • The scheme covers risks from prevented sowing, post-harvest losses, localized calamities, and standing crops affected by natural calamities, pests, and diseases.

How do farmers file a claim under PMFBY?

  • Farmers must inform the insurance company or local agriculture department within 72 hours of the occurrence of an insured event, provide necessary evidence, and cooperate in the field inspection process.

What are the responsibilities of farmers under PMFBY?

  • Farmers must enroll timely, provide accurate information, manage their farms properly, and report crop losses promptly to ensure effective implementation of the scheme.

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