Pradhan Mantri Fasal Bima Yojana

Pradhan Mantri Fasal Bima Yojana (PMFBY)

Objectives: Pradhan Mantri Fasal Bima Yojana (PMFBY) aims at supporting sustainable production in agriculture sector by following ways:

1. Providing financial support to farmers suffering crop loss/damage arising out of unforeseen events
2. stabilizing the income of farmers to ensure their continuance in farming
3. encouraging farmers to adopt innovative and modern agricultural practices
4. Ensuring flow of credit to the agriculture sector which contributes to food security, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting farmers from production risks.

This scheme covers following crops:

1. Food crops (Cereals, Millets and Pulses)
2. Oilseeds
3. Annual Commercial / Annual Horticultural crops

The rate of Insurance Charges payable by the farmer are as follows:

1. For Kharif crops, the farmer’s part of premium is 2% of sum assured.
2. For Rabi crops, the farmer’s part of premium is 1.5% of the sum assured.
3. For annual commercial and horticultural crops, the farmer’s part of premium is 5%.

The remaining part of premium is paid equally by the central and respective state governments.

All funds for this scheme come from Krishi Kalyan Kosh.

Both Private and Public Sector Insurance Companies provide Fasal Bima.

Currently, the insurance providing schemes are as follows:

1. Agriculture Insurance Company
2. Cholamandalam MS General Insurance Company
3. Reliance General Insurance Co. Ltd.
4. Bajaj Allianz
5. Future Generali India Insurance Co. Ltd.
6. HDFC ERGO General Insurance Co. Ltd.
7. IFFCO Tokio General Insurance Co. Ltd.
8. Universal Sompo General Insurance Company
9. ICICI Lombard General Insurance Co. Ltd.
10. Tata AIG General Insurance Co. Ltd.
11. SBI General Insurance
12. United India Insurance Co.

Following risks leading to crop loss are to be covered under the scheme:

·                  Natural Fire and Lightning

·                  Storm

·                  Hailstorm

·                  Cyclone

·                  Typhoon

·                  Tempest

·                   Hurricane

·                  Tornado

·                  Flood

·                  Inundation and Landslide

·                  Drought

·                  Dry spells

·                  Pests/Diseases