Objectives of PMFBY (Pradhan Mantri Fasal Bima Yojana),
- To provide insurance coverage and financial support to farmers in the event of failure of any of the notified crops as a result of natural calamities, pests & diseases.
- To stabilise the income of farmers to ensure their continuance in farming.
- To encourage farmers to adopt innovative and modern agricultural practices.
Salient features of PMFBY (launched in 2016)
- Purpose: Comprehensive crop insurance from pre-sowing to post-harvest period
- Type: Central Sector Scheme.
- Nature: Demand-driven scheme and is voluntary for the States as well as farmers
- Implementing Agency: Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW), Ministry of Agriculture & Farmers Welfare (MoA&FW) and the concerned State.
- Coverage of Farmers: All farmers including sharecroppers and tenant farmers can avail it. o However, in 2020, the scheme was made optional for all farmers including farmers who have taken agri-loans.
- Coverage of Crops: Food crops (Cereals, Millets and Pulses); Oilseeds; Annual Commercial / Annual Horticultural crops, etc.
- Premium to be paid: Premium is paid as % of the sum assured or Actuarial Premium Rate (APR), whichever is less. APR is the premium rate set by insurance companies.
- Premium by farmers:
- 2% for Kharif crops
- 1.5% for Rabi crops
- 5% for commercial horticulture crops
- Premium by farmers:
- Other notable features: Compulsory use of at least 0.5% of the gross premium collected by insurance companies for IEC activities; intensive use of technology; freedom to States to choose risk cover as per requirements, etc