Pradhan Mantri Fasal Bima Yojana (PMFBY)

• Farmer's contribution to premium is reduced significantly i.e. 2% for Kharif crops, 1.5% for Rabi crops and 5% for Annual and Commercial crops.
• Provision to assess the losses individually in case of localized perils such as hailstorm, inundation and landslide.
• Assessment of yield loss on individual plot basis in case of occurrence of cyclone, cyclonic rains and unseasonal rains throughout the country resulting in damage to harvested crop lying in the field in 'cut and spread' condition up to maximum period of two weeks (14 days) from harvesting for the sole purpose of drying.
• On-account claim payment is made to the farmer in case of prevented sowing and localized losses.
• The use of technology will be encouraged to a great extent under this scheme. Smart phones will be used to capture and upload data of crop cutting to reduce the delays in claim payment to farmers. Remote sensing will also be used under this scheme to reduce the number of crop cutting experiments.

• Malicious damage
• Preventable risks
• Losses arising out of war and nuclear risks

For Localized Losses

• Farmers may intimate the details of the loss within 72 hours of the calamity either to us or the concerned bank or local agriculture department / district officials. They can also reach us using our Farmitra Mobile App or can call us at the toll free number  1800-209-5959 .
• Intimation must contain details of survey number-wise insured crop and the acreage affected along with bank account number (Loanee famer) and saving bank account no (Non Loanee Farmer).
• A surveyor will be appointed by us within 48 hours and the loss assessment will be completed within 72 hours of appointment of surveyor.
• The premium payment done by the farmer will be verified from bank or farmer portal within 7 days of loss intimation.
• The applicable pay-out based on the cover will be disbursed within 15 days of the survey of loss. However, it is to be noted that we can remit claims only post receipt of 50% of government share of premium subsidy.

For Prevented Sowing

There is no need for the insured farmer to intimate the insurance company losses due to prevented sowing, as this will be a widespread calamity and assessment is based on area approach. This benefit is triggered when majority of farmers are unable to sow their crop because of weather conditions. The details are as below:

• The insured farmers shall be paid the claim under prevented sowing if minimum 75% of the sown area of major crop in the notified Insurance Unit (IU) remains unsown or has suffered germination failure due to wide spread calamities such as drought or flood.
• This provision needs to be invoked by State Government within 15 days of the cut-off date of enrolment.
• The insurance company would pay the claim within 30 days of the state notification of the prevented sowing, subject to the data on estimated sown area having been received from State Government and receipt of advance subsidy (1st instalment) from government.
• Insurance cover will cease post the payment of 25% of Sum Insured to farmers as final claims.
• Once the claim is paid under prevented sowing, no fresh enrolment of farmers for the affected notified IU's and crop would be accepted. This applies to all the farmers in the notified Insurance Units.

Wide Spread Calamities

This cover pays for the shortage in yield of the insured crop compared to Threshold Yield (TY) on area approach.

• If the Actual Yield (AY) of the insured crop in the Insured Unit (IU) is less than Threshold Yield of the insured crop in the IU then all the insured farmers in the Insurance Unit growing the same crop are assumed to have suffered the loss. The claim is calculated as: ((Threshold Yield - Actual Yield) / Threshold Yield ) * (Sum Insured), where, AY is calculated on the no. of CCE's done in the Insurance unit and TY is calculated as the average of the best of 5 years from the last seven years

Mid-season Calamity

This cover is to provide immediate relief to farmers in case of any widespread calamity or adverse season, wherein the expected yield during the season is likely to be less than 50% of normal yield.

• If due to adverse severe seasonal conditions such as severe drought, dry spells and drought declared by state/UT, abnormally low temperatures, wide spread incidence of insects, pests and diseases and natural events such as floods resulting in wide spread loss, the expected yield of the insured crop is less than 50% than the normal yield then the mid-season calamity claim is paid to the insured farmer.
• Under this claim, the amount is payable to the insured farmer directly on account and shall be 25% of the total Sum Inured.
• The timeline of the mid-season adversity to be triggered is post one month after the crop sowing and before 15 days of the harvest time.
• The State Government would notify within 7 days regarding the mid-season adversity and the loss assessment has to be done within the next 15 days from the occurrence of adverse seasonal events.
• The district level joint committee would assess the claim and decide whether the claim is payable under this condition.
• The formula to calculate on-account is: ((Threshold Yield - Actual Yield) / Threshold Yield ) *( Sum Insured * 25% )

Post-Harvest Loss

• Post-harvest yield loss is assessed on individual plot/farm occurring due to hailstorm, cyclone, cyclonic rains and unseasonal rainfall when the harvested crop is kept lying on the fields "in cut and spread" condition for drying of the crop up to 14 days from harvesting of the crop. In such cases on individual basis the claim shall be paid to the insured farmers by the insurance company.
• The farmer must intimate the loss within 72 hours to the insurance company, concerned bank, agriculture department, district officials. This can be done using the toll free number provided by the insurance company.
• The insurance company will appoint the surveyor within 48 hours after receiving the complaint. The loss assessment should be completed within 10 days from appointed of the surveyor.
• The claim would be paid within 15 days from the loss assessment. The percentage of loss shall be assessed through this loss assessment.
• If the affected area is more than 25% of the total cropped area, then all the farmers in the insurance unit would be deemed to have suffered the loss and the claim would be paid to all insured farmers.