PM Fasal Bima Yojana

February 4, 2026 by Team Instabizfilings

Introduction

Pradhan Mantri Fasal Bima Yojana (PMFBY) is a flagship crop insurance scheme launched by the Government of India to provide financial protection to farmers against crop loss or damage due to natural calamities, pests, and diseases. The scheme aims to stabilize farmers’ income and encourage them to continue farming despite risks.

PMFBY was launched on 18 February 2016 and is implemented by the Ministry of Agriculture & Farmers Welfare.

Objectives of PM Fasal Bima Yojana

The main objectives of PMFBY are:

To provide insurance coverage and financial support to farmers in case of crop failure
To stabilize farmers’ income and ensure economic security
To encourage farmers to adopt modern agricultural practices
To provide an inflow of credit to the agricultural sector.
To reduce the risk and uncertainty associated with farming

Crops Covered Under PMFBY

PMFBY covers a wide range of crops, including:

Food crops (cereals, millets, pulses)
Oilseeds
Annual commercial and horticultural crops

Both Kharif and Rabi season crops are included under the scheme.

Premium Rates Under PMFBY

One of the key features of PMFBY is its low premium rate for farmers:

Kharif crops: 2% of the sum insured
Rabi crops: 1.5% of the sum insured
Commercial/Horticultural crops: 5% of the sum insured

The remaining premium amount is subsidized by the Central and State Governments, making the scheme affordable for farmers.

Risks Covered Under PMFBY

PMFBY provides coverage against the following risks:

Prevented Sowing

If farmers are unable to sow crops due to adverse weather conditions like insufficient rainfall.

Standing Crop Loss

Losses caused by:

Drought
Flood
Cyclone
Storm
Landslide
Natural fire

Post-Harvest Losses

Coverage for losses occurring after harvesting due to cyclones, unseasonal rainfall, etc.

Localized Calamities

Losses due to:

Hailstorm
Landslide
Inundation
Cloudburst

Eligibility for PM Fasal Bima Yojana

All the farmers who grow notified crops in notified areas are eligible.
Both loanee farmers (who take crop loans) and non-loanee farmers can apply
Tenant farmers and sharecroppers are also eligible

Claim Settlement Process

Crop loss is assessed using technology-based tools such as remote sensing, drones, and mobile apps
Claims are transferred directly to the farmer’s bank account through Direct Benefit Transfer (DBT)
The aim is to ensure quick and transparent claim settlement

Benefits of PM Fasal Bima Yojana

Low premium rates for farmers
Comprehensive risk coverage
Protection against income loss
Encourages agricultural investment
Promotes financial inclusion
Use of modern technology for transparency

Challenges of PMFBY

Despite its benefits, the scheme faces some challenges:

Delay in claim settlement in some regions
Lack of awareness among farmers
Dependence on timely reporting by states
Issues related to crop loss assessment

Conclusion

PM Fasal Bima Yojana is a crucial step towards safeguarding farmers from agricultural risks and ensuring income stability. With proper implementation, increased awareness, and timely claim settlements, the scheme has the potential to significantly strengthen India’s agricultural sector and improve farmers’ livelihoods.

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