Pradhan Mantri Fasal Bima Yojana (PMFBY)

On 13th January 2016, the Government of India took a historic step towards strengthening risk coverage of crops for farmers of India and approved the flagship crop insurance scheme – the Pradhan Mantri Fasal Bima Yojana (PMFBY).

About the Pradhan Mantri Fasal Bima Yojana

• It was launched in 2016 and being administered by the Ministry of Agriculture.
• It is an insurance service scheme for farmers for their yields.
• It aims to reduce the premium burden on farmers and ensure early settlement of crop assurance claim for the full insured sum.
• It was formulated in line with One Nation–One Scheme theme by replacing earlier two schemes National Agricultural Insurance Scheme (NAIS) and the Modified National Agricultural Insurance Scheme (MNAIS).
• The scheme covers all Food & Oilseeds crops and Annual Commercial/Horticultural Crops for which past yield data is available and for which requisite number of Crop Cutting Experiments (CCEs) are being conducted under General Crop Estimation Survey (GCES)

Implemented by

• The scheme is implemented by empanelled general insurance companies.
• The scheme is compulsory for loanee farmers availing Crop Loan /KCC account for notified crops and voluntary for other others.
• The average sum insured per hectare has increased from ₹15,100 during the pre-PMFBY Schemes to ₹40,700 under PMFBY.