Pradhan Mantri Fasal Bima Yojana (PMFBY): A Complete Guide for Indian Farmers

 Learn about the PM Fasal Bima Yojana, how crop insurance works, premium rates, covered risks, registration process, and common mistakes to avoid.

Introduction: What is Crop Insurance and Why is it Needed?

Indian farmers face numerous uncertainties: droughts, floods, pests, hailstorms, and market fluctuations. Even a single bad season can throw a farmer into debt. This is where crop insurance comes in — a way to protect against income loss due to factors beyond a farmer’s control.

The Pradhan Mantri Fasal Bima Yojana (PMFBY), launched in 2016, is the Government of India's flagship crop insurance scheme. It provides financial support to farmers in the event of crop failure and encourages them to adopt innovative farming practices.

Key Objectives:

• Provide insurance cover and financial support to farmers during crop loss

• Stabilize farm income

• Encourage modern agricultural practices

• Ensure flow of credit to the agriculture sector

Let’s explore how this scheme works, who can benefit, and how to avoid common pitfalls.

                                                                         

1. How PMFBY Works: A Simple Breakdown

A. Scheme Overview

• Launched by: Ministry of Agriculture & Farmers Welfare

• Implemented by: Empaneled public and private general insurance companies

• Coverage: Kharif, Rabi, and annual horticultural crops

• Operates on: Area Approach – not individual but village/block-level basis

B. Who Can Enroll?

• Loanee Farmers: Automatically enrolled if availing seasonal agri loans

• Non-Loanee Farmers: Voluntary registration via Common Service Centers (CSCs), PMFBY portal, or banks

C. What’s Covered?

StageRisks Covered

Pre-SowingPrevented sowing due to adverse weather

Post-SowingDrought, floods, hail, pests, diseases

Mid-SeasonLocalized calamities like landslides

Post-HarvestCyclone, rain, unseasonal weather

OthersWild animal attacks (in select states)

D. What's Not Covered?

• War, nuclear risks, malicious damage

• Losses due to negligence or theft

• Willful damage or gross mismanagement

“PMFBY shifts the risk burden from farmers to the insurance system—providing peace of mind during uncertainties.”

                                                                     

 

2. Premiums, Covered Risks & Claim Calculation

A. Affordable Premium Rates

Crop TypeFarmer’s Share of Premium

Kharif Crops2% of sum insured

Rabi Crops1.5% of sum insured

Horticultural Crops5% of sum insured

The rest of the premium is paid by the Central and State Governments.

B. Example Calculation

If a farmer insures ₹50,000 worth of paddy:

• He pays only ₹1,000 (2%)

• The remaining ₹4,000+ is covered by the government

C. Claim Settlement Process

1. Crop Cutting Experiments (CCEs) are conducted by government authorities

2. Based on yield shortfall compared to district/block average

3. Claims are automatically settled into the farmer’s bank account

D. Covered Risks Include:

• Droughts and floods

• Unseasonal rains or hailstorms

• Pests and plant diseases

• Landslides and cyclones (post-harvest stage)

“Unlike private insurance, PMFBY is heavily subsidized and meant for mass risk coverage.”

                                                                       

 

3. How to Register and File a Claim

A. Registration Process

1. Through PMFBY Portal

• Visit https://pmfby.gov.in

• Click “Apply Online as Farmer”

• Enter Aadhaar, mobile, bank details, and land records

• Upload scanned documents: land records, crop sowing details, photos

2. Through CSCs or Banks

• Visit nearest Common Service Center (CSC) or your agriculture bank branch

• Fill offline form with documents: Aadhaar, bank passbook, land documents

• Get acknowledgment slip with reference ID

Enrollment window opens twice a year—before each cropping season (Rabi & Kharif).

B. Claim Filing Process

1. Automatic Claim (Area Approach)

• Based on local yield data (no need for individual report)

• Claim is credited if area average yield is lower than insured yield

2. Localized Calamity or Post-Harvest Loss

• File grievance online at https://pmfby.gov.in or with local agriculture office

• Must submit within 72 hours of damage

• Submit geo-tagged photos, field location, and crop condition

3. Claim Settlement Timeline

• Claims processed within 30–60 days after harvest

• Monitored by district and state nodal officers

C. Required Documents for Registration

Document TypeRequired For

Aadhaar CardIdentity verification

Land Records (7/12)Proof of cultivation area

Sowing CertificateAvailable from gram sevak

Bank PassbookFor claim transfer

PhotographsFor localized calamity claim

“Ensure you submit the claim request quickly and with clear evidence—time is critical.”

                                                                     

 

4. Common Mistakes to Avoid in PMFBY

A. Missing the Enrollment Deadline

• Each state declares crop-wise cut-off dates

• Missing it means no coverage for the season

B. Providing Wrong Bank Details

• Claims are credited to linked bank account

• Wrong IFSC or account number = failed transaction

C. Not Submitting Sowing Proof

• Some states require sowing verification

• Ensure timely visit by village-level officer (VLO)

D. Lack of Awareness about Area Approach

• Your yield might be fine but claims depend on area average

• Discuss with local officials or Krishi Vigyan Kendra (KVK)

E. Ignoring Grievance Channels

• If you face delays, file a grievance:

  • Call PMFBY helpline: 1800-180-1111

  • Use PMFBY mobile app for updates

“Knowing the rules and timelines can make all the difference between claim approval and rejection.”

                                                                       

 

Conclusion: Securing Crops, Securing Future

PMFBY is more than just insurance—it's a support system for farmers fighting unpredictable weather, pests, and disasters. While it's not perfect, it gives crores of Indian farmers peace of mind and a safety net.

✅ Extremely low premium
✅ Wide coverage of risks
✅ Digital application & claim system
✅ Funded by government, designed for farmers

“In farming, uncertainty is natural. With PMFBY, protection can be planned.” 

suggested reading 

1.Subsidy on Tractors and Farm Machinery: A 5000-Word Complete Guide for Indian Farmers.

2.Official PMFBY Portal