Pradhan Mantri Fasal Bima Yojana (PMFBY)

About Pradhan Mantri Fasal Bima Yojana (PMFBY):

• Pradhan Mantri Fasal Bima Yojana (PMFBY) is the government sponsored crop insurance scheme that integrates multiple stakeholders on a single platform.
• Highlights of the scheme
  • PMFBY is a replacement scheme of NAIS / MNAIS, there will be exemption from Service Tax liability of all the services involved in the implementation of the scheme
  • There is no upper limit on Government subsidy. Even if balance premium is 90%, it will be borne by the Government.
  • The use of technology will be encouraged to a great extent. Smart phones will be used to capture and upload data of crop cutting to reduce the delays in claim payment to farmers. Remote sensing will be used to reduce the number of crop cutting experiments.
• Risks covered under the scheme: Risk of sowing, planting and germination failure, Risk of standing crop failure, Risk of post-harvest losses, Protection against calamities.
  • Exclusions – 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.
• Coverage of Crops: Food crops (Cereals, Millets and Pulses), Oilseeds, Annual Commercial / Annual Horticultural crops.
• Premiums Under the Scheme:
  • There will be a uniform premium of only 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops.
  • In case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%.

Source : PIB