• Affordable Premiums: The maximum premium payable by the farmer will be 2% for the Kharif food and oilseed crops. For rabi food and oilseeds crop, it is 1.5% and for yearly commercial or horticultural crops it will be 5%. The remaining premium is subsidized by the government.

• * For the farmers in North-Eastern States, Jammu, Kashmir, and Himachal Pradesh, the government also pays the entire premium.
• Comprehensive Coverage: The scheme covers natural disasters (droughts, floods), pests, and diseases. Post-harvest losses due to local risks like hailstorms and landslides are also included.
• Timely Compensation: PMFBY aims to process claims within two months of the harvest to ensure that farmers get the compensation quickly, preventing them from falling into debt traps.
• Technology-Driven Implementation: PMFBY integrates advanced technologies like satellite imaging, drones, and mobile apps for precise estimation of crop loss, ensuring accurate claim settlements.

RISKS COVERED

• Yield Losses (Standing Crops): The Government provides this insurance coverage for yield losses that fall under the non-preventable risks, such as Natural Fire and Lightning: Storm, Hailstorm, Tornado etc.: Flood, Inundation and Landslide; Pests/ Diseases, etc.; Drought etc.
• Prevented Sowing: Cases may arise where most of the farmers (insured )of notified areas may want to plant or sow. In such cases, they have to bear the expenditure for that cause and are restricted from planting or sowing insured crops because of unfavourable weather conditions. These farmers will then become eligible for the indemnity claims of up to a maximum of 25% of the sum insured.
• Post-harvest Losses: The Government provides for post-harvest losses on an individual farm basis. The Government offers coverage of up to 14 days (maximum) from harvesting for crops that are stored in “cut and spread” condition. It means that the Government covers farmers who have put the crops to become sun-baked in the field after harvesting that have been destroyed due to cyclone or cyclonic rains occurred across the country.
• Localised Calamities: The Government provides for localised calamities on an individual farm basis. Risks such as loss or damage arising from identified localised hazards, such as hailstorms, landslides, and inundation impacting separated farmlands in the notified area comes under this coverage.

1. All farmers, including tenant farmers and sharecroppers growing notified crops in notified areas.
2. Farmers must have an insurable interest in the insured crops.
3. Farmers must possess a valid and authenticated land ownership certificate or a valid land tenure agreement.
4. The farmer must be a cultivator or sharecropper on the insured land.
5. The farmer must apply for insurance coverage within the prescribed time frame, usually within 2 weeks of the start of the sowing season.
6. Farmers must not have received compensation for the same crop loss from any other medium or source.

Non-Notified Areas

Losses Outside the Crop Cycle

Negligence and Non-Compliance

Losses Beyond Specified Limits

Non-Premium Payment

• Passport–sized Photograph
• Passbook
• Identity Proof (Aadhaar Card/PAN Card/Voter ID/Bank Passbook with Photo, Kisan Photo Book/NREGA Job Card)
• Address Proof (Aadhaar Card/PAN Card/Voter ID/Electricity Bill/Bank Passbook with Photo).
• Evidence of Land records, as per the State Records of Right (RoR), Land Possession Certificate (LPC), and other applicable agreements, contracts notified or permitted by the state.
• Declaration about the crop sown/intended to be sown.