Looking at 5 Important FAQs on Pradhan MantriFasalBimaYojana (PMFBY)

admin | November 24, 2020 | 0 | Insurance


The Pradhan MantriFasalBimaYojana is a crop insurance scheme that offers financial support to farmers in the wake of unfortunate events. It operates under the motto, “One Nation, One Crop, One Premium”. As such, its main objective is to provide farmers in India with affordable crop insurance.

It has been recently launched in 2016, and many may have questions regarding this crop insurance scheme.

Here are 5 important FAQs related to PMFBY, answered:

  1. What are the objectives of the PMFBY?

The objectives of the PMFBY are as follows:

  • – To offer financial support to farmers in case of crop damage/loss
  • – To ensure farmers continue farming by stabilizing their income
  • – To promote steady credit to the agricultural sector
  • – To promote the competitiveness of the agricultural sector
  • – To bolster farming in India by encouraging farmers to adopt innovative and modern agricultural practices
  • – To offer protection to farmers against production risks
  1. What risks are covered under the PMFBY scheme? 

The scheme covers several unforeseen dangers such as:

  1. Yield Losses

Comprehensive risk insurance provides financial coverage of yield losses that occur due to risks that are not preventable like – natural fire and lightning, hailstorm, typhoon, cyclone, tempest, hurricane, flood, inundation, landslides drought, dry spells, and so on. This only applies to standing crops within the notified area.

  1. Prevented Sowing/Planting Risk

If the majority of farmers in a notified area are prevented from sowing/planting the insured crops due to adverse weather conditions and have already incurred expenses for the same, then they are eligible for an indemnity claim up to a maximum of 25% of the sum insured.

  1. Post-Harvest losses 

If insured crops are kept to dry in a ‘cut and spread’ condition post harvesting and are affected by specific weather conditions of cyclone/cyclonic rains and unseasonal rains throughout the country, then the farmer can claim coverage from the PMFBY scheme. Do bear in mind that this coverage is available only up to a maximum of 2 weeks post the harvesting on an individual farm basis.

  1. Localized calamities 

This includes coverage for damage/losses that have occurred due to identified localized risks such as hailstorm, landslide, inundation, etc and have affected isolated farms within a notified area basis.  

  1. What risks are excluded under the PMFBY scheme?

The PMFBY crop insurance scheme excludes damages that occur as a result of war and nuclear activities, malicious damages, and other preventable risks. 

  1. What crops does the PMFBY cover?

The PMFBY crop insurance scheme covers food crops such as cereals, millets and pulses, oilseeds and annual horticultural and annual commercial crops. 

  1. How is the sum insured of the PMFBY scheme decided? 

The sum insured for the PMFBY scheme will be equal to the Scale of Finance as set by the District Level Technical Committee.  The State Level Coordination Committee on Crop Insurance (SLCCCI) will pre-declare and notify regarding the same. No other calculation of Scale of Finance will be applicable.

Thus, the sum insured for each farmer would be as the Scale of Finance per hectare multiplied by the area of the notified crop as put forth for coverage.

For more information regarding the scheme, it is advised to contact a reliable insurance provider for detailed help.

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