23 July 2021, New Delhi: Pradhan Mantri Fasal Bima Yojana (PMFBY) is being implemented on actuarial/bidded premium rates however, farmers including small farmers have to pay maximum 2% for Kharif, 1.5% for Rabi food and oilseed crops and 5% for commercial/horticultural crops and the balance of actuarial/bidded premium is shared by the Central and State Government on 50 : 50 basis and in case of North Eastern States on 90 : 10 basis from Kharif 2020.
Salient Features of PMFBY
- Provides comprehensive insurance coverage against crop loss on account of non-preventable natural risks, thus helping in stabilizing the income of the farmers and encourage them for adoption of innovative practices.
- Increased risk coverage of Crop cycle – pre-sowing to post-harvest losses.
- Area approach for settlement of claims for widespread damage. Notified Insurance unit has been reduced to Village/Village Panchayat for major crops.
- Actuarial/bidded premium but uniform maximum premium of only 2%, 1.5% and 5% to be paid by farmers for all Kharif crops, Rabi Crops and Commercial/ horticultural crops respectively. Premium over and above these limits is shared by the Central and State Governments on 50 : 50 basis except in North Eastern Region where it is 90 : 10.
- The difference between premium and the rate of Insurance charges payable by farmers is provided as subsidy and shared equally by the Centre and State.
- Uniform seasonality discipline & Sum Insured for both loanee & non-loanee farmers
- Removal of the provision of capping on premium which led to reduction in sum insured to facilitate farmers to get claim against full sum insured without any reduction.
- Individual farm level assessment and settlement of claims for localized calamities of hailstorm, landslide, Inundation, Cloud Burst and Natural Fire and post harvest losses due to cyclone, cyclonic/unseasonal rains and hailstorm for the crops kept in the field for drying upto a period of 14 days, throughout the country.
- Provision of claims upto 25% of sum insured for prevented sowing.
- “On-Account payment” upto 25% of sum insured for mid season adversity, if the crop damage is reported more than 50% in the insurance unit. Remaining claims based on Crop Cutting Experiments (CCEs) data.
- Use of Remote Sensing Technology, Smartphones & Drones for quick estimation of crop losses to ensure early settlement of claims.
- Crop Insurance Portal has been developed for ensuring better administration, co-ordination, transparency, dissemination of information and delivery of services including crediting the claim amount electronically to the individual farmer’s Bank Account.
- Focused attention on increasing awareness about the schemes among all stakeholders and appropriate provisioning of resources for the same.
- Making the scheme voluntary for all farmers instead of compulsory for loanee farmers.
Details of total number of farmer applications enrolled for which premium subsidy was provided during last three years under Pradhan Mantri Fasal Bima Yojana (PFMBY) are given in following table :
|No. of farmer applications enrolled (in lakhs)
This information was given in a written reply by the Union Minister of Agriculture and Farmers Welfare Shri Narendra Singh Tomar in Rajya Sabha today.