Overview

PMFBY is a centrally sponsored scheme administered by the Ministry of Agriculture & Farmers' Welfare. It offers risk cover from pre‑sowing to post‑harvest for all notified crops in notified areas across India. Implementation is through State Governments, designated insurance companies and the National Agricultural Insurance Company (NAIC). Premiums are subsidised by the Centre (50 % for Kharif and Rabi, 100 % for horticulture and commercial crops) and by the State (up to 30 %). The balance premium is borne by the farmer.

Coverage

The scheme covers loss due to non‑preventable natural perils such as drought, flood, hail, cyclone, pest attack and disease, as well as post‑harvest losses caused by adverse weather. Sum insured is based on the average yield of the preceding three years, with a 5 % uplift for each successive year of continuous enrolment.

Implementation Mechanism

Claims are settled on the basis of actual loss assessment by authorised surveyors. Approved claim amounts are transferred directly to the farmer’s bank account through the Pradhan Mantri Jan Dhan Yojana (PMJDY) platform, ensuring prompt and transparent disbursement.

1. Visit the nearest authorised bank branch or insurance agent.
2. Submit land‑holding details, crop plan and Aadhaar‑linked bank account information.
3. Insurer issues a policy document with a unique policy number.
4. In case of loss, file a claim through the National Crop Insurance Portal or the insurer’s local office, attaching the loss survey report.
5. Upon approval, the claim amount is credited directly to the farmer’s bank account.