Pradhan Mantri Fasal Bima Yojana: Financial Security for Farmers During Natural Disasters

Agriculture in India has traditionally been dependent on weather and natural conditions. Extreme weather events such as frost, excessive rainfall, floods, or cyclones pose a constant threat to farmers, often resulting in severe crop losses. To safeguard farmers against such adversities, the Government of India launched the Pradhan Mantri Fasal Bima Yojana (PMFBY) — a crop insurance scheme that provides financial compensation in the event of crop damage caused by natural calamities.

Minimal Premium, Maximum Protection:

This scheme, farmers are required to pay only a nominal premium amount for crop insurance, while the remaining premium is jointly borne by the central and state governments. The premium structure is as follows:

1. Kharif crops: Only 2% of the sum insured
2. Rabi crops: Only 1.5% of the sum insured
3. Horticultural crops: 5% of the sum insured
4. The remaining premium—50% each—is subsidized by the Central and State Governments, making the insurance affordable for all categories of farmers.

Direct Benefit Transfer in Case of Crop Loss:

The unfortunate event of crop damage due to natural disasters, a minimum of 25% of the insurance claim is transferred directly to the farmer's bank account as immediate relief. The insurance cases are prepared based on a district-wise, tehsil-wise, crop-wise, and village cluster (halka) level assessment to ensure timely and accurate disbursement of benefits.

Important Application Deadlines:

To enroll under the PMFBY scheme, farmers must apply through their respective banks by the following deadlines:

For Kharif Crops:

1. Loaned (Loanee) Farmers: Up to 15th September
2. Non-loanee Farmers: Up to 22nd August
3. Banks must forward insurance proposals to the insurer by: 30th September

For Rabi Crops:

1. Loaned (Loanee) Farmers: Up to 15th February
2. Non-loanee Farmers: Up to 22nd January
3. Banks must forward insurance proposals to the insurer by: 28th February

Modern Technology for Accurate Crop Loss Assessment: To ensure transparency and accuracy in the estimation of crop damage, Crop Cutting Experiments (CCE) is conducted using scientific methods. The data collected from these experiments is uploaded in real-time using smartphone applications, enabling quicker claim settlements. The scheme also covers damages due to waterlogging, unseasonal rains, and cyclonic events, offering comprehensive protection throughout the cropping cycle.