Pradhan Mantri Fasal Bima Yojana (PMFBY) was launched from Kharif 2016 with aim to support production in agriculture by providing an affordable crop insurance product to ensure comprehensive risk cover for crops of farmers against all non-preventable natural risks from pre-sowing to post-harvest stage. The Scheme has completed 8 crop seasons and is being implemented across States/Union Territories (UTs)

Objective of the Scheme

PMFBY aims at supporting sustainable production in agriculture sector by way of:

• Providing financial support to farmers suffering crop loss/damage arising out of unforeseen events.
• Stabilizing the income of farmers to ensure their continuance in farming.
• Encouraging farmers to adopt innovative and modern agricultural practices.
• Ensuring credit worthiness of the farmers, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting the farmers from production risks.

Coverage of Farmers:

All farmers including sharecroppers and tenant farmers growing the notified crops in the notified areas are eligible for coverage. However, farmers should have insurable interest for the insured crops and lands. Such farmers are required to submit necessary documentary evidence of land records prevailing in the State (Records of Right (RoR), Land Possession Certificate (LPC) etc.) and/or applicable contract/ agreement details/ other documents notified/ permitted by concerned State Government in case of sharecroppers/tenant farmers and the same should be defined by the respective States in the notification itself. Such farmers are also required to essentially submit Aadhaar Number and declaration about the crops own/ crops intended to be sown.

Coverage of Crops:

• Food crops (Cereals, Millets and Pulses).
• Oilseeds.
• Annual Commercial / Annual Horticultural crops.

In addition, pilots for coverage can be taken for those perennial horticultural/ commercial crops for which standard methodology for yield estimation is available.

Coverage of Risks and Exclusions:

Basic Cover: The basic cover under the scheme covers the risk of loss of yield tostanding crop (sowing to harvesting).This comprehensive risk insurance is provided to cover yield losses on an area based approach basis due to non-preventable risks like drought, dry spells, flood, inundation, wide spread pest and disease attack, landslides, natural fire due to lightening, storm, hailstorm, and cyclone.

Add-On Coverage: Apart from the mandatory basic cover, the State Governments/ UTs, in consultation with the State Level Coordination Committee on Crop Insurance (SLCCCI) may choose any or all of the following add-on covers based on the need of the specific crop/area in their State to cover the following stages of the crop and risks leading to crop loss.

• Prevented Sowing/Planting/Germination Risk: Insured area is prevented from sowing/planting/germination due to deficit rainfall or adverse seasonal/climatic conditions.
• Mid-Season Adversity: Loss in case of adverse seasonal conditions during the crop season viz. floods, prolonged dry spells and severe drought etc., wherein expected yield during the season is likely to be less than 50% of the normal yield. This add-on coverage facilitates the provision for immediate relief to insured farmers in case of occurrence of such risks.
• Post-Harvest Losses: Coverage is available only up to a maximum period of two weeks from harvesting, for those crops which are required to be dried in cut and spread / small bundled condition depending on requirement of the crops in that area, in the field after harvesting against specific perils of hailstorm, cyclone, cyclonic rains and unseasonal rains.
• Localized Calamities: Loss/damage to notified insured crops resulting from occurrence of identified localized risks of hailstorm, landslide, inundation, cloudburst and natural fire due to lightening affecting isolated farms in the notified area.
• Add-on coverage for crop loss due to attack by wild animals: The States may consider providing add-on coverage for crop loss due to the attack by wild animals wherever the risk is perceived to be substantial and is identifiable.

Role of Common Service Centre-Special Purpose Vehicle (CSC-SPV):

• To ensure enrolment of non loaned farmers through its SPV/VLE.35.6.2To educate and train the VLEs on marketing and sale of crop insurance through the NCIP and /or through concerned ICs at the District level.
• To electronically remit the premium collected from the CSCs to the concerned ICs in batches but no later than 3 days of receipt of premium from farmers.
• To reconcile the premium from farmers to the concerned ICs in T+1 timeline.
• To send the daily MIS of the premium remitted along with the summary of insured farmers to the IC.
• To reconcile the data uploaded on NCIP and premium remittance to the concerned ICs within 7 days post cut-off date for enrolment of farmers.
• To raise an invoice for pre-agreed service charges per farmer per crop-season application to the respective IC on or before 10th of following month.
• To ensure post sales services and facilitate grievance redressal of the insured farmers.

Will be responsible for accuracy of details and document of individual farmers uploaded on NCIP and liable for claim payment due to errors and omissions committed by SPV/VLE.

Role of Common Service Centers - Village level Entrepreneurs (CSC-VLE):

• To educate the farmers especially non-loanee farmers on the feature of the scheme. While accepting the application from the individual farmers, CSC-VLE will explain the provisions and provide details of the documents required. They must also make the farmers aware of the consequences of incorrect submission of information/documents. Further, they must ensure that all the documents submitted by the farmers should be scrutinized thoroughly, verified and uploaded on NCIP in legible form to avoid any anomaly in the coverage of that particular farmer by Insurance Company.
• To display the advertisement, publicity material, banner, poster, leaflets in its premises for farmers as provided by the ICs/State Government.
• To fill up the online insurance proposal in the prescribed format and collect therequired documents from non- loanee farmers only.
• Collect the premium on behalf of the implementing IC, strictly as per the provisions of the Scheme.35.7.5 To fill up the correct details of non-loanee farmers and upload the requisite documents along with their mobile number on NCIP. Due care should be taken in filling up the details in the application form of each of the insured non- loanee farmerand it should be cross-checked with the documents attached in the application.
• The VLE should ensure that the insured farmers are not deprived of any benefit under the Scheme due to errors/ omissions/ commissions by them, and if such a case is reported, necessary administrative and legal action will also be taken forlapses in service/malpractices.
• To issue acknowledgement receipt to the concerned farmer.
• To facilitate post sales services, claim intimation and grievance redressal of the insured farmers.