About Pradhan Mantri Fasal Bima Yojana:
- It was launched in 2016 to bring the maximum number of farmers under crop insurance coverage.
- It covers risks from pre-sowing, including prevented or failed sowing, widespread mid-season adversity, localized calamities caused by hailstorms, inundation, landslide, etc.
- Nodal Ministry: Department of Agriculture, Cooperation, and Farmers’ Welfare, Ministry of Agriculture and Farmers Welfare.
- Premiums
- Farmers pay a maximum premium of 2% for Kharif and 1.5% for Rabi foodgrain and oilseed crops. For commercial and horticultural crops, the maximum premium is 5%.
- The Central & State Governments subsidizes the remaining premium in 50:50 proportion. For the farmers in North-Eastern & Himalayan States/UTs, the contribution of Central & State Govt. subsidy is in a 90:10 proportion.
- Eligibility for Pradhan Mantri Fasal Bima Yojana
- 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.
- 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.
- PMFBY covers both loanee and non-loanee farmers across the agricultural range.
- Non-loanee farmers are those without crop loans or with non-standard Kisan Credit Card (KCC)-linked loans.
- Loanee farmersare those who take seasonal crop loans from banks or financial institutions, and their loans or KCCs are active and standard.
