Pradhan Mantri Fasal Bima Yojana (PMFBY)

Farmer Data - Insured under PMFBY
  • The Scheme can cover all Food & Oilseeds crops and Annual Commercial/Horticultural Crops for which past yield data is available and for which requisite number of Crop Cutting Experiments (CCEs) will be conducted being a part of the General Crop Estimation Survey (GCES).
  • The scheme is compulsory for loanee farmer obtaining Crop Loan /KCC account for notified crops. However, voluntary for Other/non loanee farmers who have insurable interest in the insured crop(s).
  • 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.
  • The difference between premium and the rate of Insurance charges payable by farmers shall be shared equally by the Centre and State.
  • The seasonality discipline shall be same for loanee and non-loanee farmers.
  • The scheme will be implemented by AIC and other empanelled private general insurance companies. Selection of Implementing Agency (IA) will be done by the concered State Government through bidding.
  • The existing State Level Co-ordination Committee on Crop Insurance (SLCCCI), Sub-Committee to SLCCCI, District Level Monitoring Committee (DLMC) shall be responsible for proper management of the Scheme.
  • The Scheme shall be implemented on an ‘Area Approach basis’. The unit of insurance shall be Village/Village Panchayat level for major crops and for other crops it may be a unit of size above the level of Village/Village Panchayat.
  • The Loss assessment for crop losses due to non-preventable natural risks will be on Area approach.
  • In case of majority of insured crops of a notified area are prevented from sowing/planting the insured crops due to adverse weather conditions that will be eligible for indemnity claims upto maximum of 25% of the sum-insured.
  • However losses due to localised perils (Hailstorm, landslide & inundation) and Post-Harvest losses due to specified perils, (Cyclone/Cyclonic rain & Unseasonal rains) shall be assessed at the affected insured field of the individual insured farmer.
  • Three levels of Indemnity, viz, 70%, 80% and 90% corresponding to crop Risk in the areas shall be available for all crops.
  • The Threshold Yield (TY) shall be the benchmark yield level at which Insurance protection shall be given to all the insured farmers in an Insurance Unit Threshold of the notified crop will be moving average of yield of last seven years excluding yield upto two notified calamity years multiplied by Indemnity level.
  • In case of smaller States, the whole State shall be assigned to one IA (2-3 for comparatively big States). Selection of IA may be made for at least 3 years.
  • The designated / empanelled companies participating in bidding have to bid the premium rates for all the crops notified / to be notified by the State Govt. and non-compliance will lead to rejection of company’s bid
  • Crop Cutting Experiments (CCE) shall be undertaken per unit area /per crop, on a sliding scale, as prescribed under the scheme outline and operational guidelines. Improved Technology like Remote sensing. Drone etc will be utilised for estimation of yield losses.
  • State governments should use Smart phone apps for video/image capturing CCEs process and transmission thereof with CCE data on a real time basis for timely, reliable and transparent estimation of yield data
  • The cost of using technology etc. for conduct of CCEs etc will be shared between Central Government and State/U.T. Governments on 50:50 basis.
  • There will be a provision of on account claims in case of adverse seasonal conditions during crop season viz. floods, prolonged dry spells, severe drought, and unseasonal rains.
  • On account payment upto 25% of likely claims will be provided, if the expected yield during the season is likely to be less than 50% of normal yield.
  • The claim amount will be credited electronically to the individual Insured Bank Account.
  • Adequate publicity needs to be given in all the villages of the notified districts/ areas

Weather Based Crop Insurance Scheme (WBCIS)

  • The structure of farmer’s premium under WBCIS will be at par with the proposed PMFBY.
  • The Criteria of selection of Implementing Agency and area allocation will be same as PMFBY.
  • The other broad features will remain same.

Unified Package Insurance Scheme (UPIS)

  • nified Package Insurance Scheme will be implemented in selected 45 districts on pilot basis to provide financial protection & comprehensive risk coverage of crops, assets, life, and student safety to farmers.
  • Pilot will include seven section Viz., crop Insurance (PMFBY/WBCIS) , Loss of Life (PMJJBY), Accidental Death & Disability (PMSBY), Student Safety, Household, Agriculture implements & Tractor.
  • Crop Insurance will be compulsory. However, farmers can choose atleast two section from remaining.
  • Farmers may be able to get all requisite insurance products for farmers through one simple proposal/ application Form.
  • Two flagship schemes of the Government viz PMSBY & PMJJBY have been included apart from insurance of assets.
  • Pilot scheme will be implemented through single window.
  • Premium of PMSBY & PMJJBY is to be transferred to insurance companies which have tie up with the concerned banks.
  • Processing of claims (other than Crop Insurance) on the basis of individual claim report.