A major chunk of Indian population is involved in agriculture and thus, the perils to this sector of Indian economy need to be taken care of. Pradhan Mantri Fasal Bima Yojna is a crop insurance policy dedicated solely to safeguard the interests of farmers by protecting their main source of income, i.e. crop.
Table of Contents:
What is Pradhan Mantri Fasal Bima Yojana?
It is a crop insurance scheme put forth by Government of India to provide financial aid to farmers in times of crop loss or crop damage due to unforeseen events, It helps stabilise farmers’ income so that they can continue with farming without any trouble. This scheme can be taken from selected insurance companies along with some other financial institutions like commercial banks, co-operative banks, Regional Rural Banks, Government Departments of Agriculture, Horticulutre, Revenue, Panchayati Raj, etc.
Types of Pradhan Mantri Fasal Bima Yojna
Pradhan Mantri Fasal Bima Yojana can be classified as:
Compulsory Coverage Policy : Farmers enrolled for crop loans are included in this scheme by default (Loanee Farmers).
Voluntary Coverage Policy : All the farmers not included in the compulsory coverage policy can go for this one.
What Pradhan Mantri Fasal Bima Yojna Covers?
The scheme covers following crops:
- Food Crops
- Oil seeds
- Annual commercial/ horticulture crops
The scheme covers following risks:
Damage due to non-preventable perils: If the standing crop of the farmers gets damaged due to reasons like natural fire, flood, lightning, drought, pests, etc.
Conditions leading to prevention of planting the seeds: If due to lack or excess of rainfall or due to adverse seasonal conditions, farmers could not sow/plant the seeds and suffered losses
Post-Harvest risks: If the harvested crop is damaged due to reasons like hailstorm, landslide, unseasonal rains, etc.
How Pradhan Mantri Fasal Bima Yojana Functions?
- In case of widespread natural disaster, the loss assessment report or the average yield submitted by the government is used to calculate the damage compensation
- For farm specific damage, the loss/damage information submitted by the farm is used to calculate the compensation
- Post estimation and verification of all the required documents, claim amount or compensation is paid to the farmers
Claim Process
If the situation gets such that you need to file a claim, it should be done as soon as possible. Here are the steps to be followed for claim process.
- Inform the insurance company or the bank or respective government department about details of the loss (including details of crop & the land affected along with bank account number)
- For widespread calamities ( drought, dry spell, flood, storm, hailstorm, cyclone, etc.) payment will be made directly in the accounts of the farmers affected by the same (post-verification of premium receipt)
- Such an event must be reported within 72 hours
- For failed sowing/planting/germination claims, 25% of sum insured will be paid if 75% of farming land remained un-sown after which policy will terminate
- For post-harvest crop damage, loss will be assessed on individual farm basis and must be reported not later than 72 hours of the event
- In case of a localized calamity where crops were damaged at an individual farm, event needs to be reported within 3 days to the insurance company by farmer, associated bank, Tehsil or district administration
- A surveyor will be appointed to assess the loss
- Within 10 days, claim amount will be released in the account of the claimant, if no further investigation is required
- After validation, the insurance agencies provide the money directly into the bank accounts of the farmers. Payments are not made via Banker’s cheque or demand draft.
Documents Required for Claim Process
- Aadhaar Card
- Land Possession Certificate (for non-loanee farmers)
- Passport-sized photograph of the claimant
- Detailed statement about the loss thus incurred
Time Taken to Settle Claims
Claims made under Pradhan Mantri Safal Bima Yojna are usually settled within a span of 10-15 days from the date of receipt of last document. In case of some discrepancy in the claim made or the documents submitted, this period can extend further to a maximum of 30 days.
Companies Providing Pradhan Mantri Fasal Bima Yojna
- Agriculture Insurance Company
- Bajaj Allianz General Insurance Co. Ltd
- Bharti Axa General Insurance Company Ltd.
- Cholamandalam Ms General Insurance Company Limited
- Future Generali India Insurance Co. Ltd.
- Hdfc Ergo General Insurance Co. Ltd.
- Icici Lombard General Insurance Co. Ltd.
- Iffco Tokio General Insurance Co. Ltd.
- National Insurance Company Limited
- New India Assurance Company
- Oriental Insurance
- Reliance General Insurance Co. Ltd.
- Royal Sundaram General Insurance Co. Limited
- Sbi General Insurance
- Shriram General Insurance Co. Ltd.
- Tata Aig General Insurance Co. Ltd.
- United India Insurance Co.
- Universal Sompo General Insurance Company
Exclusions
Damage or loss to the crop due to any of the following reasons is not covered in this scheme:
War & kindred perils, nuclear risks, riots, malicious damage, theft, act of enmity, grazed and/or destroyed by domestic and/or wild animals, In case of Post–Harvest losses the harvested crop bundled and heaped at a place before threshing, other preventable risks
- War & related risks, nuclear risks, riots, etc.
- Theft, act of hatred
- Grazing by animals or wild animals
- If the bundled crop was placed at an unsafe/exposed place leading to avoidable damage
Important Aspects
It is important to keep certain points in mind about this insurance so that you are able to reap all the benefits.
- Farmers can apply for the insurance at https://pmfby.gov.in
- Since this scheme is designed to help farms get out of the financial distress, premium rates are fixed at highly affordable rates
- Subsidy provided by government to the farmers are:
Season Crops Maximum Premium Payable by farmer (% of Sum Insured) Kharif Cereals, millets, pulses & oilseeds 2% of SI/ Actuarial Rate (whichever is lower). Rabi Cereals, millets, pulses & oilseeds 1.5% of SI/ Actuarial Rate (whichever is lower). Kharif & Rabi Annual Commercial/ Horticultural Crops/ Perennial Horticultural Crops (pilot basis) 5% of SI/ Actuarial Rate (whichever is lower).
- If there is scarcity of rainfall or there are adverse environmental conditions, then farmers should strictly avoid sowing/planting or germination activities on the notified land
- To get compensation for localised losses (related to reasons pertaining in their specific region only), farmers or the agency should inform the officials about the loss on their own
Advantages of Pradhan Mantri Fasal Bima Yojna
This insurance helps people involved in the farming sector in the following ways:
- Providing funds to farmers who encountered crop loss or damage due to unforeseen events
- Ensuring continuous income to the farmers to encourage them in farming
- Assisting farmers in adopting modern agricultural techniques and equipment
- Offering continuous flow of credit in the agricultural sector
- Providing food security and encourage production of a wide variety of crops
- Encouraging farmers to be competitive and improve the quality and quantity of crop production
- Special initiatives are taken to include more farmers from the SC/ST category in this scheme
