Pradhan Mantri Fasal Bima Yojana (PMFBY): Eligibility, benefits and other details

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New Delhi: Farmers are the primary section of the society and play a significant role in the development of humans as well as the country. They are responsible for accessibility to fresh fruits, vegetables, grains and other requirements of humans. Despite the fact that they face numerous challenges, they are true warriors as they do not defy their job to meet the requirements of food for humans. Considering the fact and their crucial role in the well-being of humans, government of India has been operating several schemes focusing on them. While some schemes ensure direct financial assistance to farmers, others help them conserve their farm products. Pradhan Mantri Fasal Bima Yojana (PMFBY) scheme is one of those government initiatives that ensure financial safety to farmers by offering subsidised crop insurance.

What is Pradhan Mantri Fasal Bima Yojana (PMFBY)?

Launched by the Ministry of Agriculture and Farmers Welfare in 2016, the Government of India, Pradhan Mantri Fasal Bima Yojana (PMFBY) is an initiative of the government that ensures support to farmers upon loss of their crops. The scheme was initiated by the government after withdrawing the earlier weather-based crop scheme National Agriculture Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS).

As part of the scheme, the government of India provide affordable crop insurance to ensure comprehensive risk cover for crops of farmers against any natural calamities. The insurance covers risks from pre-sowing to post-harvest stage.

The scheme covers annual commercial, annual horticultural crops, food crops (Cereals, Millets, and Pulses) and oilseeds.

After the successful completion of the project for the initial five years, the government revamped the scheme in 2021.

Pradhan Mantri Fasal Bima Yojana (PMFBY), information at glance

Name of the scheme
Pradhan Mantri Fasal Bima Yojana (PMFBY)

Started in
2016

Stakeholders
Central government, state governments, banks, CSCs, insurance companies, farmers

Enrolment
Voluntary (post Kharif 2020 season)

Beneficiaries
All farmers

Functioning body
Ministry of Agriculture and Farmers Welfare

Mode of scheme
Insurance to crops

Benefits of Pradhan Mantri Fasal Bima Yojana

The scheme ensures financial support in case of damage to crops due to natural causes such as hailstorms, inundation and landslide.

According to the scheme, farmers need to make minimum contributions to the insurance with just 1.5 per cent for Rabi crops, 2 per cent for Kharif crops and 5 per cent for Annual and Commercial crops.

The insurance also covers the loss of yields due to calamities such as dry spells, floods, droughts, etc. Additionally, PMFBY also covers the loss of crops due to pest infections.

The scheme includes the assessment of loss of yields on an individual plot basis in case of cyclone rains, cyclone, and unseasonal shower throughout the country, leading to the destruction of harvested crops in the field for a maximum period of two weeks from the date of harvesting.

Aims and objective of Pradhan Mantri Fasal Bima Yojana

With this initiative, the government of India aims to promote and extending support to sustainable production in the agriculture sector through various medium.

As part of the scheme, the government aims to provide financial assistance to farmers suffering crop failure or damage due to unprecedented events such as rain, hailstorms etc.

The scheme provides stability to farmers’ economies and motivates them to continue growing crops.

By providing protection to farmers, the scheme also helps in maintaining the food requirements of the country.

Beneficiary of the Pradhan Mantri Fasal Bima Yojana

The Insurance ensure protection for all farmers who have been sanctioned Seasonal Agricultural Operations (SAO) loans (Crop Loans) from Financial Institutions (Fis) for specific crop season.

Notably, the scheme is optional for non-loanee farmers.

The insurance coverage will be equal to the amount insured per hectare multiplied by the sown area for notified crop. The amount insured will be as per the notification by the government of India or defined on National Crop Insurance Portal.

How to apply for Pradhan Mantri Fasal Bima Yojana

To avail the benefits of the Pradhan Mantri Fasal Bima Yojana, beneficiaries need to follow the steps mentioned below.

Firstly, the beneficiary need to visit the nearest bank and collect the application form for the Pradhan Mantri Fasal Bima Yojana.

Upon collecting forms, the beneficiaries need to fill in all the required information.

To strengthen your candidature, the beneficiary must attach all the required documents highlighted by the bank. In the form.
Along with documents, submit the application form to the bank. The bank will provide you the receipt. Keep the receipt safe for future reference.

Once the application is submitted, insurance procedure will be completed.

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