Pradhan Mantri Fasal Bima Yojana Flashcards
Launched in
2016
Aim
To provide affordable risk coverage for the crops to the farmers in case of a crop failure
Monitored by
Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW), Ministry of Agriculture & Farmers Welfare (MoA&FW) and the concerned State in coordination with various other agencies
Objective
One Nation, One Crop, One Premium
Risks covered:
- Cover yields losses from ______, such as natural fire and lightning storms, hailstorms, cyclones, typhoons, tempest, hurricanes, tornados, etc.
- The farmers of a notified area, willing to sow/plant crops are prevented from sowing/planting due to bad weather conditions, will be provided with claims upto a maximum of _____ of the sum insured.
- Insurance is provided upto a maximum period of ______ days from harvesting for those crops which are kept in “cut & spread” condition to dry in the field after harvesting.
- Insurance against localised risks i e. hailstorm, landslide, and Inundation affecting _____ farms in the notified area.
- non-preventable risks
- 25%
- 14
- Isolated
Premium Rates of Kharif, Rabi (food and oilseeds crops) and Kharif & Rabi (annual commercial/horticultural crops)
Maximum Insurance charges payable by the farmer (% of sum insured, SI)
1. Kharif: 2% of SI or Actuarial rate, whichever is less
- Rabi: 1.5% or Actuarial rate, whichever is less
- Kharif & Rabi: 5% of SI or Actuarial rate, whichever is less
- the remaining premium is shared between the central and state governments. In the ratio of 50:50 in normal states and 90:10 in the case of north-eastern.
Exclusions
Losses due to war and related dangers, nuclear risks, riots, malicious damage, theft, act of enmity, grazed and/or destroyed by domestic and /or wild animals and harvested crop bundled and heaped at a place before threshing in case of post-harvest losses
Objectives:
- Mitigate financial risks from natural disasters like droughts, floods, cyclones, pests, and unseasonal rains.
- Stabilize farmers’ income through timely compensation, preventing debt traps.
- Encourage technology adoption and modern farming practices.
Key Features:
- Affordable Premiums: Farmers pay only 2% (Kharif crops), 1.5% (Rabi crops), or 5%(horticulture/commercial crops), with the balance subsidized by the government.
- Comprehensive Coverage: Includes yield losses, prevented sowing (up to ____ of sum insured), post-harvest losses (14 days post-harvest), and localized calamities.
- Voluntary Participation: Non-loanee farmers
- The Government of India (GoI) pays entire premium for the farmers in North-Eastern States, Jammu & Kashmir (J&K), and Himachal Pradesh (HP).
25%
The Pradhan Mantri Fasal Bima Yojana (PMFBY), launched in _____ by Prime Minister(PM) Narendra Modi, marked its nine-year anniversary on February 18, 2025.
- PMFBY is a flagship crop insurance scheme in India that operates under the Ministry of Agriculture and Farmers Welfare (MoA&FW), designed to
protect farmers from financial losses due to natural calamities. This scheme has emerged as a cornerstone of India’s agricultural resilience, protecting over 23.22 crore farmers against crop losses caused by natural calamities and disbursing claims worth Rs.1.75 lakh crore over the past nine years. - With its recent extension until _____ and a budget allocation of _______, PMFBY continues to strengthen farmer welfare and sustainable agriculture
2016 ;
2025-26 ;
Rs. 69,515.71 crore
Implementing Agencies:
PMFBY is implemented through a multi-agency framework involving:
IGFR
- Insurance Companies: Selected by the government to provide coverage.
- Government Departments: Agriculture, Cooperation, Horticulture, Revenue, and Panchayati Raj.
- Financial Institutions: Commercial Banks, Cooperative Banks, and Regional Rural Banks.
- Regulatory Bodies: Overseeing the implementation and ensuring transparency.
PMFBY’s success hinges on its technology-driven framework, ensuring transparency and efficiency:
- Remote Sensing & Drones: Used for crop area estimation, yield assessment, and loss evaluation, reducing human error.
- YES-TECH (Yield Estimation System Based on Technology): Introduced in Kharif 2023, it blends satellite-based yield estimates with manual data, gradually phasing out traditional Crop Cutting Experiments (CCEs). States like Madhya Pradesh (MP) have adopted 100% tech-based assessments.
- CCE-Agri Application: Direct upload of crop data to the National Crop Insurance Portal (NCIP) for real-time monitoring.
- Weather Information and Network Data System (WINDS) Initiative: A Rs. _____ Fund for Innovation and Technology (FIAT) supports hyperlocal weather data through Automatic Weather Stations (AWS) and Automatic Rain Gauges (ARGs), enhancing claim accuracy.
824.77 crore
Impact and Achievements
- Financial Security: Over Rs.1.70 lakh crore paid in claims since 2016, with _____ enrollment growth in 2023-24.
- Global Recognition: PMFBY is the world’s largest crop insurance scheme by farmer participation.
- ____states and Union Territories (UTs) are implementing the scheme. Non-loanee farmers’ coverage has increased to 55% of the total coverage.
- 25% growth in farmer enrolment numbers (2023-24 vs 2022-23). Sum insured of Rs. 17,29,395 crore
- Regional Focus: Northeastern states receive 90% premium subsidies to boost coverage.
25% ;
23
About Pradhan Mantri Fasal Bima Yojana(PMFBY):
Ministry – Ministry of Agriculture and Farmers Welfare (MoA&FW)
Administered – Department of _____, MoA&FW
Chief Executive Officer (CEO) –Muktanand Agrawal
Agriculture, Cooperation & Farmers Welfare (DAC&FW)
