Pradhan Mantri Fasal Bima Yojana : Eligibility, Apply Process, Benefits

Pradhan Mantri Fasal Bima Yojana (PMFBY) is one of India’s most important farmer-centric schemes, designed to protect cultivators from the stress of crop loss. The scheme ensures that farmers get timely financial support whenever their crops are damaged due to natural calamities, pests, or diseases by way of affordable insurance premiums and assessment based on modern technology.

Beyond mere insurance, PMFBY plays a greater role in strengthening the agricultural base of India. It encourages farmers to adopt modern practices and assists the access to credit, thus promoting crop diversification with ensured income stability even during the most unpredictable of seasons. With simplified procedures, state-wise flexibility, and technology-driven claim settlements, the scheme has become a major pillar of agricultural security across the country.

What is PMFBY?

Pradhan Mantri Fasal Bima Yojana was launched by the Government of India on 18 February 2016. It is an all-inclusive crop insurance scheme. The Yojana was intended to provide financial support to farmers in case of failure of their crops, thus helping sustainable production in agriculture. This replaces previous crop insurance schemes operated by the Centre, and is a modern approach toward the risk assessment and claim settlement process. This is one of the vital projects in the agricultural sector of India.

Pradhan Mantri Fasal Bima Yojana Objective and Scope

PMFBY is a scheme that aims to protect farmers from financial loss due to crop failure. Besides stability in agriculture, this scheme empowers modern agricultural practices and ensures better access to credit.

• The main purpose of PMFBY is to provide immediate financial support to the farmers in case of failure of notified crops due to any natural calamities, pests, and diseases.
• It encourages farmers to use innovative and modern agricultural practices that enhance their productivity and resilience.
• This scheme would help increase credit eligibility for farmers and thereby fortify this sector.
• PMFBY supports food security and encourages diversification in crops across regions.
• Its coverage is extended to many states and crops, depending on seasonal notifications by state governments and the central government.
• This scheme thus ensures that farmers receive timely economic success to reduce the overall economic stress of crop loss.

Pradhan Mantri Fasal Bima Yojana Key Benefits

Certain salient features differentiate the Pradhan Mantri Fasal Bima Yojana from its predecessors.

• Premiums under PMFBY are very affordable and within the reach of all farmers.
• Farmers pay 1.5 percent for Rabi crops, 2 percent for Kharif crops, and 5 percent for commercial or horticultural crops, with the remaining premium covered by the government through subsidies.
• With more advanced technology, the scheme ensures speedy damage assessment and claim settlement, bringing more efficiency and transparency.
• The main tools used in crop cutting experiments and yield estimation involve drones, smartphones, and remote sensing.
• PMFBY provides comprehensive risk coverage against multiple non-preventable risks, including natural calamities, pests, and diseases.
• It also ensures uniform premium rates nationwide for specific categories of crops, thus ensuring fairness across states.

Risks Covered Under PMFBY

Pradhan Mantri Fasal Bima Yojana covers a broad spectrum of risks. This includes yield losses due to non-preventable natural risks such as drought, dry spells, flood, inundation, pests and diseases, landslides, natural fire, storm, hailstorm, cyclone, and typhoon. Localized calamities, like hailstorm, landslide, and inundation affecting individual farms, are also covered. Post-harvest losses due to cyclonic rains and unseasonal rains are included for up to a two-week period after harvest for crops stored in the field.

Eligibility Criteria for PMFBY

All farmers, including sharecroppers and tenant farmers, growing the notified crops in the notified areas, are eligible for coverage. The scheme is compulsory for loanee farmers availing Seasonal Agricultural Operations (SAO) loans from financial institutions for notified crops. Non-loanee farmers may choose to opt for this scheme voluntarily. An important point is the farmer must have an insurable interest in the cultivated land.

Pradhan Mantri Fasal Bima Yojana Premium Structure

The premium rates under PMFBY are significantly subsidized. Farmers' premium contribution is capped at 2% for Kharif food and oilseed crops, 1.5% for Rabi food and oilseed crops, and 5% for annual commercial/horticultural crops. The difference between the actuarial premium and the rate of insurance premium payable by farmers is borne equally by the Central and State Governments. This structure makes crop insurance affordable for even marginal farmers.

Pradhan Mantri Fasal Bima Yojana Documents Required for Application

Farmers applying for the Pradhan Mantri Fasal Bima Yojana (PMFBY) must submit essential documents to verify their identity, land ownership, and crop details. These documents ensure smooth registration and timely claim settlement.

• Proof of identity such as Aadhaar Card or PAN Card.
• Proof of address issued by a recognized authority.
• Land records, including Khasra number or land ownership documents.
• Bank account details for direct transfer of insurance claim amounts.
• Crop sowing certificate issued by village revenue officials or agricultural departments.
• Cancelled cheque for bank account verification, if required.

How to Apply for PMFBY?

Applying for Pradhan Mantri Fasal Bima Yojana involves a few steps. Farmers are advised to apply within the stipulated deadlines for each cropping season.

Step 1: Go to the official Pradhan Mantri Fasal Bima Yojana (PMFBY) website.

Step 2: On the homepage, click the “Farmer Corner” button at the top right.
A pop-up will appear — choose “Guest Farmer”. This will open the online registration form.
If you already have an account, you can skip ahead to Step 4.

Step 3: Fill out the registration form by entering all required (red-marked) details:

• Farmer Details: Full Name, Passbook Name, Relationship, Relative’s Name, Mobile Number, Age, Caste, Gender, Farmer Type, Farmer Category
• Residential Details: State, District, Sub-District, Village/Town, Full Address, PIN Code
• Farmer ID: Select ID Type and enter ID Number
• Bank Details: IFSC Code, Bank Name, Branch Name, Savings Account Number (enter twice to confirm)

After entering all information, complete the captcha and click “Create User.”

Step 4: Once registered, return to the homepage and select “Farmer Corner (Apply for Crop Insurance Yourself)”.
In the pop-up, choose “Login for Farmer” to access the login page.

Step 5:  On the login page, enter your mobile number, fill in the captcha, and click “Request for OTP.” Enter the OTP you receive and click “Submit.” This will take you to the Farmer Application Form.

Step 6: Fill out the application form carefully and upload all required documents in the correct format.
Click “Preview” to review your entries.
If everything looks correct, click “Submit.” You will see a confirmation message on the screen.

Step 7: A pop-up will now show two options:

• Pay Later – if you want to complete payment later

• Make Payment – if you want to finish payment immediately

Choose whichever suits you.

Step 8: After a successful payment, download or print the payment receipt for your records.

State wise Guidelines and Implementation

While PMFBY is a central scheme, its implementation involves considerable state participation. The state governments have the flexibility to notify crops, define insurance unit areas, and select implementing insurance companies in accordance with their agronomic practices and local risks. Decentralization of this type enables adaptation of the scheme to regional needs. Accordingly, specific details regarding cut-off dates and notified crops will have variations in different states. Farmers may contact the concerned offices of the state agricultural departments or at the district level for accurate state-specific guidelines.

Pradhan Mantri Fasal Bima Yojana Claim Settlement Process

The operational mechanics for the claim settlement process under PMFBY are laid out for efficiency. The losses in yield are estimated through Crop Cutting Experiments undertaken jointly by the state government machinery, representatives of insurance companies, and farmers. In cases of localized calamities and post-harvest losses, individual assessment is done. Data collected through CCEs and surveys undertaken in the ground would be used to arrive at the extent of loss. The insurance company processes the claim and disburses the claim amount directly to the farmer’s bank account often through DBT, ensuring less number of intermediaries and complete transparency

Pradhan Mantri Fasal Bima Yojana Technology Integration

Technology has a pivotal role in improving the efficacy and transparency of PMFBY. Presently, remote sensing and satellite imagery are increasingly being used for rapid yield estimation and area discrepancy identification. Field staff use smartphones and tablets to upload data on CCEs and damage assessment reports, usually geo-tagged and time-stamped, in real time. Drones may also be deployed for localized damage assessment and monitoring of crop health. These technological interventions enable faster and more accurate assessment of loss, which will facilitate smoother processing of claims under PMFBY.