All farmers including sharecroppers and tenant farmers growing thenotified crops in the notified areas are eligible for coverage.
b. Voluntary Component
The Scheme would be optional for the non-loanee farmers and cultivators desirous of availing insurance under PMFBY for any notified crop in any notified insurance unit mayapproach nearest bank branch/ PACS/ authorized channel partner/ insurance intermediary of insurance company within cut-off date, fill-up proposal form completely in prescribed format, submit form and deposit requisite premium to bank branch/ Insurance Intermediary / CSC Centers along with necessary documentary evidence regarding his insurable interest in cultivating land/ crop (e.g.ownership/ tenancy/ cultivation rights) proposed for insurance.
II. Crops Covered
All crops are covered under the scheme such as Food& Oilseeds crops and Annual Commercial/Horticultural Crops for which past yield data is available.
III. Coverage of Risks and Exclusions under the scheme
The Scheme operates on the principle of “Area Approach” in the selected Defined Areas which are called Insurance Unit (IU) , basis Crops and Defined Areas in accordance with decision taken in the State level coordination committees on crop insurance.of the respective State/UT Government . These units are notified as insurance unit applicable to Village/Village Panchayat or any other equivalent unit for major crops. For other all other crops it may be a unit of size above the level of Village / village Panchayat. Following stages of the crop and risks leading to crop loss are coveredunder the scheme.
a. Prevented Sowing/ Planting Risk: In case of majority of insured crops of a notified area are prevented from sowing/planting due to adverse weather conditions such as deficit rainfall or adverse seasonal conditions, the insured
crops that will be eligible for indemnity claims upto maximum of 25% of the sum-insured.
b. Standing Crop (Sowing to Harvesting): Comprehensive riskinsurance 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.
c. Post-Harvest Losses: coverage is available only up to a maximumperiod 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.
For the claims arising out of crop damage due to post-harvest losses and localized risks, arising out of cyclone or cyclonic rains / unseasonal rains throughout the country, resulting in damage to harvested crop lying in the field in ‘cut and spread’ condition for sole purpose of drying only , upto a maximum period of two weeks (14days) from harvesting is also covered and the assessment of damage will be made on individual farm basis.
d. Localized Calamities: Loss/ damage resulting from occurrence ofidentified localized risks of hailstorm, landslide, and Inundationaffecting isolated farms in the notified area.
Note :Losses arising out of war and nuclear risks, malicious damage and other preventable risks shall be excluded.
IV. Indemnity Level applicable for different crops
Coverage is provided upto different indemnity levels of 70%, 80% and 90% corresponding to high, moderate and low risk level, respectively, of the areas basis the type of crops and is notified for crops and areas as per notified unit applicable.
The Maximum Premium payable by the farmers will be 2% for all Kharif Food & Oilseeds crops, 1.5% for Rabi Food & Oilseeds crops and 5% for Annual Commercial/Horticultural Crops or actuarial premium rate whichever is less. The difference between premium and the rate of Insurance charges payable by farmers shall be shared equally by the Centre and State.
VI. Basis of Claims Settlements
The claims payout would be made, basis the Area Approach, subject to the following:
For any losses arising out of the above mentioned events the farmer should contact our company and intimate the loss within 48 hours of the event occurring along with survey number-wise insured crop and acreage affected and the Premium payment verification details as given to the Bank / Intermediary / CSC centers. Local Newspaper cutting and any other available evidence to substantiate occurrence of loss event and severity of the loss, if any should also be provided as applicable.