Pradhan Mantri Fasal Bima Yojana (PMFBY), Benifits, Eligibility

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Pradhan Mantri Fasal Bima Yojana Latest News

The Union government has decided to expand the ambit of the PM Fasal Bima Yojana to include crop damage by animals as a ground for payouts, a long-standing demand by farmers, an official said recently.

About Pradhan Mantri Fasal Bima Yojana

Launched on 18th February 2016, PMFBY is a crop insurance scheme by the Department of Agriculture, Cooperation, and Farmers’ Welfare, Ministry of Agriculture.
PMFBY aims to provide financial protection to farmers against crop loss due to natural disasters (hail, drought, famine), pests, and diseases.
PMFBY provides crop insurance at a cost-effective premium to all Indian farmers.
It is implemented through a network of insurance companies and banks.

Pradhan Mantri Fasal Bima Yojana Objectives

To provide financial assistance and support to farmers suffering from crop damage or loss arising out of unforeseen events.
To stabilise the income of farmers and ensure continuance in farming.
To encourage the farmers to adopt modern and innovative agricultural practices.
To ensure crop diversification, and creditworthiness of the farmers, enhance growth, and competitiveness of the agriculture sector and protect the farmers from production risks.

Pradhan Mantri Fasal Bima Yojana Eligibility

All farmers, including sharecroppers and tenant farmers, growing the notified crops in the notified areas are eligible for coverage.
Compulsory Component:All farmers availing Seasonal Agricultural Operations (SAO) loans from Financial Institutions (i.e. loanee farmers) for the notified crops would be covered compulsorily.
Voluntary Component: The Scheme would be optional for the non-loanee farmers.
Farmers must have an insurable interest in the insured crops.
Farmers must possess a valid and authenticated land ownership certificate or a valid land tenure agreement.
Farmers must not have received compensation for the same crop loss from any other medium or source.
Special efforts shall be made to ensure maximum coverage of SC/ST/Women farmers under the scheme.
Budget allocation and utilization under this should be in proportion to land holdings of SC/ ST/ General along with women in the respective state cluster.

Pradhan Mantri Fasal Bima Yojana Benefits

Affordable Premiums:
- The maximum premium payable by the farmer will be 2% for the Kharif food and oilseed crops.
- For rabi food and oilseed crops, it is 1.5% and for yearly commercial or horticultural crops it will be 5%.
- The remaining premium is subsidized by the government.
- For the farmers in the North-Eastern States, Jammu, Kashmir, and Himachal Pradesh, the government also pays the entire premium.
Comprehensive Coverage:
- The scheme covers natural disasters (droughts, floods), pests, and diseases.
- Post-harvest losses due to local risks like hailstorms and landslides are also included.
- Loss or damage to notified insured crops due to war, nuclear risks, malicious damage and other preventable risks is excluded from the scope of coverage.
Timely Compensation: PMFBY aims to process claims within two months of the harvest to ensure that farmers get the compensation quickly, preventing them from falling into debt traps.
Technology-Driven Implementation:
- PMFBY integrates advanced technologies like satellite imaging, drones, and mobile apps for precise estimation of crop loss, ensuring accurate claim settlements.
- The National Crop Insurance Portal (NCIP) digitizes processes for seamless farmer-insurer-bank interaction. YES-TECH (Yield Estimation System Based on Technology) ensures remote sensing based accurate yield estimation, while CROPIC (Collection of Real-time photos and Observations of Crops) uses geotagged photos to verify crops for precise damage assessment.