Pradhan Mantri Fasal Bima Yojana (PMFBY)

✦Key Features

• Uniform low premium: 2% Kharif, 1.5% Rabi, 5% commercial/horticulture crops — rest borne by Centre and State
• Coverage from pre-sowing to post-harvest (cyclone, unseasonal rain, landslide, hailstorm)
• Technology: drones, satellite imagery, smartphone crop-cutting experiments for loss assessment
• Voluntary for non-loanee farmers since 2020; mandatory for crop loan borrowers
• ₹1.55 lakh crore total claims paid since 2016; 4+ crore farmers insured annually
• Yield Index and Weather-based crop insurance both covered
• Budget FY2024-25: ₹14,600 crore; funded jointly by Centre and State

✓Eligibility Criteria

• All farmers growing notified crops in notified areas
• Compulsory for loanee farmers
• Optional for non-loanee farmers
• Both sharecroppers and tenant farmers covered

★Benefits

• Financial protection against crop losses
• Low premium burden on farmers
• Quick settlement of insurance claims
• Coverage for all stages of crop cycle
• Support for agricultural credit flow

▶Application Process

• Apply before cut-off date for the crop season
• Submit application to insurance company/bank/CSC
• Pay applicable premium amount
• Receive policy certificate
• Report crop loss within 72 hours of occurrence

₹ Budget Allocation

14600

Funding Ratio (Centre:State): Premium paid by Farmers: 2% (Kharif), 1.5% (Rabi), 5% (Commercial/Horticulture). Balance premium split 50:50 between Center and State (90:10 for NE)

Historical Context

Launched in February 2016, replacing the National Agricultural Insurance Scheme (NAIS) and Modified NAIS.