Objectives of Crops insurance:

Crops insurance aims at supporting sustainable production in agriculture sector by way of –
a) Providing financial support to farmers suffering crop loss/damage arising out of unforeseen events
b) Stabilizing the income of farmers to ensure their continuance in farming
c) Encouraging farmers to adopt innovative and modern agricultural practices
d) Ensuring flow of credit to the agriculture sector; which will contribute to food security, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting farmers from production risks.

Eligibility

All farmers including share croppers and tenant farmers growing notified crops in the notified areas are eligible under this scheme

Coverage of Farmers

Loanee Farmers (Compulsory Coverage): All the farmers availing seasonal agriculture operations (SAO) loans from financial institutes (Loanee farmers / KCC holders) for the notified crop would be covered compulsorily.
Non-Loanee Farmers: The Scheme would be optional for the non-loanee farmers.

Coverage of Crops

All Food Crops (Cereals, Millets, and Pulses), Oil seeds, Annual Commercial/Horticulture Crops.

Coverage of Risks

Following stages of the crop and risks leading to crop loss are covered under the scheme.

Prevented Sowing/ Planting Risk: Insured area is prevented from sowing/ planting due to deficit rainfall or adverse seasonal conditions
Standing Crop (Sowing to Harvesting): Comprehensive risk insurance is provided to cover yield losses due to non- preventable risks, viz. Drought, Dry spells, Flood, Inundation, Pests and Diseases, Landslides, Natural Fire and Lightening, Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane and Tornado.
Post-Harvest Losses: coverage is available only up to a maximum period of two weeks from harvesting for those crops which are allowed to dry in cut and spread condition in the field after harvesting against specific perils of cyclone and cyclonic rains and unseasonal rains.
Localized Calamities: Loss/ damage resulting from occurrence of identified localized risks of hailstorm, landslide, and Inundation affecting isolated farms in the notified area.
General Exclusions: Losses arising out of war and nuclear risks, malicious damage and other preventable risks shall be excluded.

Better Coverage

Pradhan Mantri Fasal Bima Yojana (PMFBY) aims at covering the losses suffered by farmers due to reduction in crop yield as estimated by the local appropriate government authorities. The scheme also covers pre-sowing losses, post-harvest losses due to cyclonic rains and losses due to unseasonal rainfall in India. There is a provision to cover losses due to localized calamities such as inundation also in addition to the previously covered hailstorm and landslide risks.

Claim Process

If ‘Actual Yield’ (AY) per hectare of insured crop for the insurance unit (calculated on basis of requisite number of CCEs) in insured season, falls short of specified ‘Threshold Yield’ (TY), all insured farmers growing that crop in the defined area are deemed to have suffered shortfall of similar magnitude in yield. PMFBY seeks to provide coverage against such contingency.

Explanations mentioned in “What’s Covered & What’s Not Covered?” are illustrative and will be subject to terms, conditions and exclusions of the Policy. Please refer to the Policy Document for more details