Pradhan Mantri Fasal Bima Yojana – Benefits, Coverage & Claim Method!

Since a large portion of the Indian population works in agriculture, addressing the threats to this area of the country’s economy is important. Pradhan Mantri Fasal Bima Yojana (PMFBY) Policy is an insurance policy for crop insurance that was introduced specifically to protect farmers’ interests by defending their primary source of income, or crop. 

What do you mean by The PMFBY Scheme- Pradhan Mantri Fasal Bima Yojana?

It is a crop insurance program proposed by the Government of India to give farmers financial assistance in cases of crop loss or crop damage brought on by unforeseeable circumstances. It helps stable farmers’ income so they can farm without problems. This program is offered by a few insurance providers and other financial institutions, such as cooperative banks, commercial banks,  regional rural banks, revenue, horticulture, government departments of agriculture, and Panchayati Raj, among others.

Why this Scheme was introduced?

To safeguard farmers, the PMFBY, a comprehensive agricultural subsidy insurance program, was created in 2016. This flagship program, which was established in line with the One Nation-One Policy, succeeded three prior projects, including the National Agricultural Insurance Scheme (NAIS), the Modified National Agricultural Insurance Scheme (MNAIS), and the Weather-based Crop Insurance Scheme. By merging their greatest features and eliminating their inherent shortcomings, it enhanced the insurance services provided to farmers.

This program is managed by licensed general insurance companies and the Ministry of Agriculture’s Department of Cooperation, Agriculture, and Farmers’ Welfare.

The program addresses all issues relating to crops, including those that appear before planting, during harvest, and during the growing season. By broadening coverage, it safeguards farmers against financial losses caused by unanticipated occurrences such as crop failure due to localised risk, natural disasters, post-harvest losses, crop diseases, excessive rain, and bug infestations. The major goals of the program are to lower the financial burden of insurance premiums on farmers and to guarantee swift claim payment.

Goals of the PMFBY Scheme

The PMFBY Scheme seeks to promote the agricultural sector’s sustained development of yield. PMFBY will do this by putting the following into practise:

  •     Farmers who are struggling financially as a result of crop loss and damage brought on by unforeseen disasters will receive assistance.
  • Ensuring that farmers’ incomes are stable so they may continue their farming operations.
  •   Encouraging the adoption and application of cutting-edge tools and farming techniques by farmers for productive, efficient farming.
  •   Along with protecting farmers from production risks, ensuring the flow of credit to the agriculture sector promotes crop diversification, food security, and the sector’s growth and competitiveness.

What is Covered under Pradhan Mantri Fasal Bima Yojana?

The program includes the following crops:

  •       food plants
  •       seed oils
  •       Annual horticultural and commercial crops


This plan does not cover crop loss or damage resulting from any of the following causes:

  •   Grazed and/or destroyed by domestic and/or wild animals, deliberate destruction, rioting, theft, war and its related dangers, acts of hatred, and nuclear threats, Before threshing, the harvested crop was bundled and piled in case of post-harvest losses, along with other avoidable risks.
  •       Riots, nuclear dangers, war, and its accompanying risks, etc.
  •       Theft, a hate crime
  •       Animals or wild animals grazing
  •   If the crop was bunched and placed in a hazardous or exposed location, causing preventable harm

The program addresses the following risks:

  • Damage resulting from unavoidable risks: If farmers’ standing crops are harmed by natural disasters like flood, fire, lightning, pests, drought, etc.
  •     Circumstances that preclude planting the seeds: If farmers were unable to sow or plant the seeds owing to inadequate or excessive rainfall or unfavourable seasonal circumstances, they experienced losses.
  •     Post-harvest risks: If the crop is harmed as a result of things like landslides, hail, unexpected rainfall, etc.

How do farmers sign up for the program?

The (NCIP) National Crop Insurance Portal, which is run by the Ministry of Farmers & Agriculture Welfare in New Delhi, must be used by both loanee and non-loanee farmers. It is the responsibility of the banks to submit the data to the NCIP when they are granting farmers seasonal crop loans.

In the case of intermediaries, non-loanee farmers, common service centres (CSCs), farmers acting alone, and others are required to submit the information to the NCIP, with 4 essential documents, namely.

DD or checks are not allowed as payment methods for premiums; only NEFT is permitted. Similarly, to this, enrolment applications sent offline are not considered because all applications must be submitted online.

Risks that are Covered and Excluded by the PMFBY Scheme:

Risks covered by the PMFBY Scheme and its exclusions include those that arise in the stages after those that result in crop loss. The state government is not allowed to add any additional dangers except for those listed below.

Risk of Prohibited Planting, Sowing, or Germination: The insured region is barred from planting, sowing, or germination due to insufficient rainfall or unfavourable weather/ seasonal circumstances. The policy will be cancelled after payment of 25% of the insured amount.

Standing Crop: Detailed risk insurance is given to cover yield losses resulting from non-preventable hazards, including dry spells, droughts, floods, extensive pest, inundation, and disease assault, fire from natural sources, landslides, lightning, hailstorm, storm, and cyclone.

Localised Calamities: damage or loss to registered insured crops brought on by the occurrence of localised hazards such as landslide, hailstorm, flood, natural fire brought on by lightning, or cloud burst that affects lone farms in the notified region.

Crop loss Add-On Coverage caused by the wild animal attack: In cases where the danger is deemed to be significant and foreseeable, the States may consider offering add-on coverage for crop loss caused by a wild animal attack.

Benefits of the Scheme

The following benefits accrue to those working in agriculture as a result of this insurance:

  •   Giving money to farmers that suffered crop damage or loss as a result of unanticipated circumstances
  •       Supplying farmers with ongoing income to encourage them to continue farming
  •       Assisting farmers in implementing cutting-edge agricultural practises and machinery
  •       Provide a steady supply of finance to the agriculture industry
  •       Ensuring food security and promoting the cultivation of a range of crops
  •     Encouraging farmers to compete and increase agricultural production’s quantity and quality
  •     Special efforts are made to increase the number of ST/SC farmers participating in this program.

Making a Claim

If the situation worsens to the point that you must make a claim, you should do so as quickly as possible. The processes for filing a claim are shown below.

  •       Inform the insurance provider, the bank, or the relevant government agency about the specifics of the loss (such as the land information, impacted crop, and the bank account number).
  •       Payment will be transferred immediately into the accounts of the affected farmers in the event of widespread disasters (such as a dry spell, drought, flood, hailstorm, storm, cyclone, etc.) (after the premium receipt has been verified).
  •       An occurrence of this nature must be reported within 72 hours.
  •   If 75% of the farmed land is still unplanted after a failed sowing, planting, or germination claim, 25% of the insured amount will be paid; thereafter, the insurance will expire.
  •       Losses from post-harvest crop damage will be calculated individually for each farm and must be notified within 72 hours of the incident.
  •       When crops are destroyed in a localised disaster, the affiliated bank, the farmer, the tehsil, or the district administration must notify the insurance provider of the incident within three days.
  •       There will be a surveyor assigned to determine the loss.
  •     If no more inquiry is necessary, the claimant’s account will receive the money within ten days.
  •     Following verification, the insurance companies deposit the funds into the farmers’ bank accounts. Demand draughts and banker’s checks are not accepted as forms of payment.

Time Spent on Claim Settlement

Claims filed under the PMFBY Scheme are typically resolved between 10 and 15 days after the last document is received. This time frame may be increased to a maximum of 30 days if there is a mismatch in the claim filed or the papers supplied.

Documents Required for Claim

The following must be provided by the Insured for or in support of a claim under the Policy:

  •       An accurately filled-out claim form;
  •       Land records that follow governmental standards;
  •       A certificate from a certifying organisation that has been approved by the company or designated by the government.
  •       Copies of insurance certificates.
  •       Two images of the crop that has been damaged or lost money illustrate the loss as described in the policy, aside from the government-sponsored program.
  •         A Sowing Certificate or other pertinent documents to this effect.


To get insurance benefits under this program, farmers must make a minor contribution to the actuarial premiums for the rabi (1.5%), kharif (2%), horticultural (5%), and commercial (5%) crops. The remaining 95-98.5% of the actuarial premium, however, was divided equally by the provincial and federal governments at a 1:1 ratio.

For example, the actuarial premium paid by insurance firms is Rs. 4,000 if a farmer insures a total of Rs. 35,000 and one hectare of land. In this scenario, the farmer is only required to pay 2% of the actuarial premium, or Rs. 800; the remaining Rs. 1,600 would be paid by each insured person, assuming Kharif crops are grown in the covered area.

Steps to Review the Status of the PMFBY Application Form

To check the progress of your PMFBY online registration, follow the steps provided below.

  •       Visit the PMFBY website at as the first step.
  •       Scroll the page to search a link for “Registration Status “; tap on it.
  •       A screen will emerge with the PMFBY farmer online registration status form.
  •   Farmers must now input the “Application Number” and “Captcha Code” that have been provided.
  •       To view the status of your PMFBY farmer application, click the “Check Status” option.

Final Words

The PMFBY system, on its whole, is a landmark effort to offer farmers throughout the nation a comprehensive risk solution with low, consistent premium rates. The Ministry of Agriculture & Farmers’ Welfare put in a lot of effort between 2016 and 2020 to update the PMFBY program by interacting with stakeholders and resolving their issues. With the Rabi 2019 crop cycle, the ministry subsequently released the updated operational guidelines for the PMFBY.

According to estimates for 2021, the PMFBY will rank third in terms of insurance premiums paid and will be the largest crop insurance program in the world in terms of farmer enrolments.

The Union Government budgeted Rs. 16,000 crores for the PMFBY program in the FY 2021–22 budget. Comparing this to the prior fiscal year, the budget increased by Rs. 305 crores. The government intends to use technology in the upcoming years to help farmers achieve better agricultural results. Methods include artificial intelligence, drones, satellite imaging, remote sensing systems, and machine learning,  


How does crop insurance work?

Crop insurance is a way to shield farmers from financial losses brought on by uncertainties that might result from crop failures or losses brought on by specific or all unforeseeable risks outside their control.

How does weather-based crop insurance work?

The purpose of weather-based crop insurance is to lessen the financial hardship that insured farmers may experience due to expected crop losses brought on by the occurrence of unfavourable weather conditions such as humidity, high temperatures, rainfall, frost, etc.

Does the PMFBY offer farmers’ insurance or crop insurance?

In the end, it is a form of crop insurance that helps farmers in hardship.

How is the premium amount chosen?

If both harvests are covered by the plan, 5% of the sum assured must be paid. The amount is 2% of the total insured for Kharif crops and 1.5% for Rabi crops.

What kind of risk is unable to be insured under this policy?

An instance when insurance is illegal, such as coverage for fines imposed by the law, can be seen as an uninsurable risk. An occurrence that is excessively probable, such as a flood or storm, in an area where comparable calamities regularly happen can be seen as an uninsurable risk.

What is the amount of the PMFBY premium?

For both Rabi crops and Kharif crops, farmers would be required to pay a flat premium of just 2% each. Farmers will only be required to pay a 5% extra for yearly horticultural & commercial crops.

What kind of risks are excluded from crop insurance coverage?

An insurance company is not liable for paying if a loss happens because of one of the following situations: nuclear risks and losses related to war. If not for the farmer’s negligence or that of his employees, there may have been an intentional injury and other hazards that could have been averted.