Pradhan Mantri Fasal Bima Yojana (PMFBY)

Pradhan Mantri Fasal Bima Yojana

The Pradhan Mantri Fasal Bima Yojana, popularly known as the PMFBY has been announced by the central government for reducing the burden of paying for the premium of the agricultural insurance. Under the scheme, the farmers will also receive financial assistance for recovering from crop losses. The scheme will also assist the farmers in getting the policy claims settled quickly and without much bureaucratic red-tapism.

Eligibility Criteria for Pradhan Mantri Fasal Bima Yojana

Though the scheme has been designed for helping the farmers; all will not be able to be a part of the program. Here, you will get a closer look at the eligibility criteria of the policy:

  1. No segregation or classification – Though there are some requirements that the farmers will have to fulfill, overall the rules are simple. There are no classifications or discriminations. The government wants to reach out to as many beneficiaries as possible.
  2. Does not depend on the ownership of land – The policy will cater to farmers who are the real owners of the land on which the farming is done. The scheme will also provide to the needs of the farmers who farm on rented land.
  3. Rules for the non-loanee farmers – According to the government, the farmers who have not applied for any agricultural credit are known as non-loanee farmers. For them, to be a part of the scheme, the production of legal land documents and other papers is a must.

Features of Pradhan Mantri Fasal Bima Yojana

If you want to register under the PMFBY, then it is important to know and understand the salient features of the program:

  1. Replacing other agro schemes – With the implementation of the PMFBY, all the agricultural loans and insurance schemes will cease to operate. The government has included all the existing agro schemes under this scheme.
  2. Including all categories of farmers – With the implementation of the scheme, the government wants to bring all kinds of categories of agricultural workers under the umbrella of protection. There are no categorizations or segregations for being a part of the scheme.
  3. Low premium rate – It is not possible for the poor farmers to ensure the safety of their investment by paying the high premiums of the other agro insurance policies. With the PMFBY, the farmers will be able to acquire the insurance policy by paying very low rates of premium. The premium rate for the Kharif crop, 1.5% for the Rabi crop, and 5% for commercial crops.
  4. Mode of payment – The insurance claim amount will be directly given to the farmers. The money will be transferred into the account of the farmer. Thus, farmers must have an active bank account.
  5. Insurance coverage – Though the farmers are required to pay only a part of the premium, they will not receive partial coverage. In case of any natural calamity, the farmers will be given the full monetary assistance that has been highlighted in the insurance policy papers.
  6. Tax Exemption – The farmers will not be charged under the tax system for the amount they have insured. Like most other government schemes, the money invested in the policy has been declared tax free.
  7. Insurance premium calculator – For the assistance of the farmers, the website and the app has a special feature. With the insurance premium calculator feature, the farmers will be able to know the sum that they need to pay as the premium for safeguarding the agricultural investment.

Documents Required for Pradhan Mantri Fasal Bima Yojana

If you are interested in being a part of the PMFBY, then you need to know about the documents, which must be produced.

  1. Aadhar card – Under the official decree of the central government of India, the Aadhar Card has been made mandatory for everything. Keeping in line with the decision, all the farmers, interested in being a part of the project will have to provide a photocopy of their Aadhar Card.
  2. Details of the farmland and prior loans – The farmers will have to provide documents, which are associated with the land. The ownership of the land does not manner. Apart from this, the farmer will also have to provide agricultural credit documents, if they have applied for any.
  3. Bank account details – As the insurance money will be directly transferred in the bank account, the farmer will have to provide the bank and the account details along with the application form.

Coverage of farmers and Crops In Pradhan Mantri Fasal Bima Yojana

When it comes to the coverage of farmers, the government wants to bring all kinds of farmers under the insurance scheme. For the time being, this segment has two main components – the compulsory component and the voluntary component. Apart from these two components, the government has kept reservations for farmers who fall in the SC/ST/OBC category as well.

The compulsory component includes all those agricultural workers who have already applied for another loan that has been used for raising a seasonal crop. The seasonal crop cultivation loan is also known as the SAO credit.

The voluntary component includes the agricultural workers who have not applied for any kind of agricultural loan that has been used for raising a seasonal crop. They also have permission to be a part of the PMFBY.

The government has produced a list of crops, which can be insured under the PMFBY scheme. The list contains food crops as well as commercial crops. The list contains rice, wheat, pulses, millets, castor, groundnut, linseed, cashew nut, guava, banana, and mangoes.

Coverage of risk In Pradhan Mantri Fasal Bima Yojana

One needs to know about the risks, which will be covered under the scheme. The following are some of the key points that you need to keep in mind:

  1. Planting or prevented sowing risks – If the farmers have not been able to sow the seeds on a patch of land that has been insured, due to delayed or inadequate rainfall or any other natural condition, then they will get monitory assistance for covering the damages.
  2. Standing harvest risks – The standing period of the crop is considered to be the time that starts right after sowing the seeds in the ground to the day of harvesting the crops. The farmers will get paid for any damage to the standing crop that has been caused due to natural causes.
  3. Post-yield risks – The farmers need time to prepare the final product after the crop has been harvested. If any damage occurs to the harvest, during the drying or the spreading period, then the farmer is entitled to get the coverage amount. For claiming the insurance, for this reason, the farmers must prove that the damage was done within two weeks since the crop was cut.
  4. Localized mishaps – Natural calamities might not always be widespread. Sometimes only a certain area might get affected while the others remain safe. If any situation like this occurs, then the insured farmer will be provided money for compensating the losses.

Risks not covered In Pradhan Mantri Fasal Bima Yojana

The insurance policy will not cover the damage of the crops if the reason for the damage is artificial. For instance, the damages brought about due to the break out of wars or any nuclear disaster will not be compensated by the scheme. If the crop has been stolen or has been set on fire by people, the farmer will not get any money for repairing the damages. The scheme will also not cover any damage done to the crops by the action of wild or domesticated animals. In short, the PMFBY will only provide monetary assistance, in the form of insurance coverage, if the damage has been done by natural forces.

Loan Facility in Pradhan Mantri Fasal Bima Yojana

The PMFBY or the Pradhan Mantri Fasal Bima Yojana happens to be an agro-insurance policy. The loan facility has been designed for the betterment of the agriculture workers by providing them insurance against any natural damage, caused to the crops. The loan facility was designed for making the agricultural venture lucrative for the farmers. If the farmer already has a loan under the agricultural sector then they will be registered under the PMFBY automatically.

Official Website, App and Toll-Free Number For Pradhan Mantri Fasal Bima Yojana

All the details, associated with the PMFBY are highlighted in the official website of the scheme. The portal is maintained by the respective government department and it is updated from time to time. If you want to register under the scheme or gather any information related to it, then you can click on the link and see for yourself.

One can also get information or register under the scheme directly by using the smartphone application. All you need to do is download the application called ‘Crop Insurance App’ on your smartphone that runs on the Android OS. Department of Agriculture Cooperation and Farmers Welfare have the link to the application on their official website.

If you are not well accustomed to the digital media, you can always go down the traditional path to acquire the information you require. All you need to do is dial the toll-free helpline number, 1800 180 1551, and talk to the representatives.

How to Download Application Form For Pradhan Mantri Fasal Bima Yojana

If you are interested in applying under the scheme, you will have to fill in the registration form. For this, you need to click on the official link of the scheme, . Once you reach the home page, you will have to click on the link that will provide you access to the online form. Click on the link and download the form. The option for submitting the form online as well as offline is available. So, download and get the printout of the form for offline submission or complete the process online.

How to Apply Online and Offline For Pradhan Mantri Fasal Bima Yojana

Applying online is much easier than applying offline. Still, both modes are available for the people. The following steps must be followed by anyone interested in making the application via online process:

  1. You need to click on the official web link of the scheme’s homepage. The link has been mentioned in the previous segment. For applying through the website, you need to click on the link that will bring up the application form.
  2. Once the application form has been opened, you need to click on the “apply as farmer” link and fill in the details accordingly. Make sure to enter the details without any mistakes. The Aadhar code must be provided so that the verification of the form can be done by the authority.
  3. After this, you need to provide the details of the bank account and the details of the plot that the farmer has. It will assist the government in transferring the policy amount directly into the account that the farmer has.

For the offline submission of the application form, you will have to get the form downloaded from the authorized site and then printed out. After this, you will have to fill in the form with the required information and then submit it in the Department of Agriculture Cooperation and Farmers Welfare. This sums up the offline application process.

How to Claim For Insurance And termination Policy In Pradhan Mantri Fasal Bima Yojana

If you want to get the insurance claim amount, you need to apply for it. The money will be transferred into the bank account of the farmer or it will be handed over to the farmer through the insurance company. While setting the claims through the authorized banks, the farmers’ accounts will be automatically credited with the insurance coverage amount, once the government sends the money. Once the bank has credited the accounts of all the claimants, the list will be compiled and published by the banks. In case the claim is being settled by intermediaries, the money will be transferred directly from the insurance company to the account.

Government Budget For Pradhan Mantri Fasal Bima Yojana

There are no extra points for guessing that the implementation of the scheme will require a lot of money. The government has already taken the steps for gathering huge sums of money. The budget for the scheme has only increased over the years. What was Rs. 5500 crore during 2016-17, increased by a whopping 40% during 2017-18. The government has the hope of bringing around 50% of the cultivated land under the scheme. During the announcement of this Annual Union Budget, the central government said that they will assign around Rs. 9000 crores for the successful implementation of the scheme. 


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