Pradhan Mantri Fasal Bima Yojana: Guide & Benefits

The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a flagship crop insurance scheme introduced by the Government of India in 2016. Its primary objective is to provide financial assistance to farmers in the event of crop failure due to unforeseen natural calamities. By offering insurance coverage for crops, PMFBY ensures that farmers can recover from losses and continue farming without financial stress.

The scheme plays a crucial role in safeguarding the livelihood of farmers, promoting sustainable agricultural practices, and reducing dependency on informal credit sources. With PMFBY, farmers can protect their investments and focus on improving productivity, ultimately contributing to the nation’s food security.

The Pradhan Mantri Fasal Bima Yojana is designed to achieve the following objectives:

• Provide financial support: Offer financial aid to farmers in case of crop failure due to natural calamities, pests, or diseases.
• Stabilise farmer incomes: Ensure income stability for farmers by compensating them for losses incurred during the cultivation process.
• Encourage modern farming practices: Promote the adoption of innovative agricultural techniques and risk management practices.
• Reduce dependency on informal loans: Minimise reliance on non-institutional credit sources by providing affordable insurance coverage.
• Promote sustainable agriculture: Support farmers in maintaining sustainable agricultural practices while mitigating climate risks.

PMFBY provides insurance coverage for a wide range of crops and risks, ensuring that farmers across India benefit from the scheme. Below are the details:

Crops covered

1. Kharif crops: Includes crops like paddy, maize, and soybeans, which are sown during the monsoon season.
2. Rabi crops: Includes wheat, mustard, and barley, which are grown during the winter season.
3. Annual commercial and horticultural crops: Covers crops like sugarcane, cotton, and fruits such as mangoes and oranges.

Risks covered

• Natural calamities: Losses caused by droughts, floods, cyclones, hailstorms, and landslides.
• Weather-related risks: Adverse weather conditions like unseasonal rainfall, frost, and heatwaves.
• Pest and disease attacks: Damages caused by pests and crop diseases during the cultivation period.
• Post-harvest losses: Coverage for losses occurring within two weeks of harvesting due to unseasonal rains or cyclones.
• Localized calamities: Coverage for specific events such as inundation or hailstorm in a particular area.

Eligibility for Pradhan Mantri Fasal Yojana

To avail the benefits of PMFBY, farmers must meet specific eligibility criteria. The table below outlines the key requirements:

Premium structure in PM Fasal Bima Yojana portal

The PMFBY scheme is designed to make crop insurance affordable for farmers by capping their premium contributions. The premium rates vary depending on the type of crop:

• Kharif crops: Farmers pay a maximum premium of 2% of the sum insured.
• Rabi crops: Farmers pay a maximum premium of 1.5% of the sum insured.
• Annual horticultural and commercial crops: Farmers pay a maximum premium of 5% of the sum insured.

The remaining premium is subsidized by the central and state governments, ensuring that farmers are not burdened with high insurance costs. This subsidy ensures widespread participation and enhances the financial resilience of farmers.

How to apply via PM Fasal Bima Yojana portal

Farmers can easily apply for PMFBY through the official portal. Below is a step-by-step guide:

Claim process for Pradhan Mantri Fasal Bima Yojana

The claim process under PMFBY is straightforward and ensures timely compensation for farmers. Here is how it works:

1. Notify crop loss: Farmers must inform their insurance provider or local authorities about crop losses within 72 hours of the event. This can be done via the PMFBY portal, a toll-free number, or through local government offices.
2. Field inspection: The insurance provider conducts a field inspection to assess the extent of the loss.
3. Submit documents: Farmers need to submit required documents, such as proof of cultivation and photographs of the damaged crop.
4. Claim settlement: Upon verification, the claim amount is disbursed directly to the farmer’s bank account.

Pro-tip: To avoid delays in claim approval, ensure that all required documents are submitted promptly and accurately.

Bajaj Finserv agri loans with PMFBY support

While PMFBY provides insurance coverage, farmers often need additional financial support for various agricultural activities. Bajaj Finserv offers tailored agriculture loans to meet the diverse needs of farmers.

Key features of Bajaj Finserv Agri Loans

• Competitive interest rates: Affordable loan options to reduce financial burden.
• Flexible repayment tenure: Choose a repayment schedule that aligns with your crop cycle.
• Hassle-free application process: Apply online with minimal documentation.

These loans can be used for purchasing seeds, fertilizers, machinery, or even to cover operational costs during the cultivation period. By combining PMFBY with Bajaj Finserv Agri Loans, farmers can ensure comprehensive financial security and peace of mind.

PMFBY success stories from farmers

The impact of PMFBY is best illustrated through real-life success stories. For instance:

• Story 1: A farmer from Maharashtra faced severe losses due to unseasonal rainfall. Thanks to PMFBY, he received compensation within weeks, enabling him to reinvest in the next crop cycle without financial stress.
• Story 2: In Tamil Nadu, a small-scale farmer used the insurance payout from PMFBY to recover from pest attacks and purchase high-quality seeds, leading to a successful harvest the following season.

PM Fasal Bima Yojana vs other crop insurance schemes

Below is a comparison of PMFBY with other crop insurance schemes: