PM Fasal Bima Yojana Explained: Eligibility, Premium, Claims and How the Scheme Works

Key Takeaways

• PMFBY has been voluntary since Kharif 2020. No farmer, including a loanee farmer with a crop loan, is automatically enrolled without consent.
• The farmer's premium share is capped low: 2% of sum insured for Kharif crops, 1.5% for Rabi crops, and 5% for annual commercial or horticultural crops. Government subsidy covers the rest.
• Coverage applies only to notified crops grown in notified areas during a notified season. Both the crop and the village must appear in the state's official PMFBY notification.
• A localised crop loss must be reported within 72 hours through the PMFBY app, portal, or helpline. Missing this window is one of the most common reasons claims are rejected.
• Since its launch in February 2016, PMFBY has insured a large number of farmer applications and paid out substantial claims, according to government data.
• Non-loanee farmers must actively enroll with land, identity, and bank documents. Loanee farmers are covered only if they opt in through their bank.

What is PM Fasal Bima Yojana?

PM Fasal Bima Yojana is a central government crop insurance scheme launched on 18 February 2016. It gives farmers financial protection when a notified crop is damaged by natural calamities, pests, or disease.

The scheme replaced older insurance programs and is implemented through insurance companies empanelled by the government in each state. It is administered on the National Crop Insurance Portal, and both loanee and non-loanee farmers can participate.

Key facts about the scheme:

• Administered by: Ministry of Agriculture and Farmers Welfare, along with State governments and empanelled insurance companies
• Applicable crops: Kharif and Rabi food crops, oilseeds, and annual commercial or horticultural crops, as notified by each state
• Coverage window: pre-sowing risks, standing crop risks, post-harvest risks, and localized calamities such as hailstorm and landslide
• Claim settlement: assessed losses are paid directly into the farmer's Aadhaar-linked bank account through Direct Benefit Transfer

How PMFBY Differs From Related Schemes

PMFBY is often confused with other agriculture-linked schemes and facilities. The distinctions matter because each serves a different purpose.

PMFBY vs RWBCIS

• PMFBY assesses actual crop yield loss using field-level data and crop-cutting experiments.
• The Restructured Weather Based Crop Insurance Scheme (RWBCIS) uses weather parameters, such as rainfall or temperature, as a proxy for crop damage.
• RWBCIS follows an area approach and is more commonly used for fruits, vegetables, and plantation crops.

PMFBY vs private crop insurance

• PMFBY premiums are heavily subsidised by the Central and State governments, so the farmer pays only a small fixed share.
• Private crop insurance, where available, is typically priced at the full actuarial premium without government subsidy.

PMFBY vs PM-KISAN

• PM-KISAN is direct income support paid in fixed instalments, regardless of whether a crop loss has occurred.
• PMFBY pays out only when an assessed loss to a notified crop is confirmed, and the amount depends on the extent of damage.

PMFBY vs Kisan Credit Card (KCC)

• A KCC is a credit facility that gives farmers access to short-term loans for cultivation expenses.
• PMFBY is an insurance cover. A farmer with a KCC loan can choose to opt into PMFBY, and the premium is then deducted from the loan account only with the farmer's consent.

Categories of Coverage Under PMFBY

PMFBY groups crops into three broad categories, each with its own premium ceiling for the farmer:

Depending on the state notification, PMFBY may also include add-on risk covers such as:

• Prevented sowing or planting risk, when adverse conditions stop timely sowing
• Mid-season adversity cover, for temporary crop loss during the growing period
• Post-harvest losses, for crops left to dry in the field for a specified number of days
• Localised calamities, including hailstorm, landslide, cloudburst, and natural fire

How PM Fasal Bima Yojana Actually Works

The sum insured for a notified crop is based on the Scale of Finance fixed by the state government for that crop and season, not on the market value of the expected harvest. This amount is published on the National Crop Insurance Portal before enrolment opens.

The farmer pays only the capped premium share described above. The remaining actuarial premium is paid as subsidy, with the cost in most states shared equally between the Central and State governments.

• Loss assessment happens in two different ways, depending on the type of event:
  Widespread calamities (drought, widespread flood): assessed using an area approach, based on yield data from crop-cutting experiments and technologies such as the Yield Estimation System based on Technology (YES-TECH)
• Localised calamities (hailstorm, landslide, cloudburst, inundation): assessed individually, after the farmer reports the loss within 72 hours

The government has also introduced digital tools to speed up and improve the accuracy of claim settlement. The Weather Information Network and Data System (WINDS) collects granular weather data, while YES-TECH uses remote sensing and technology-based yield estimation alongside traditional crop-cutting experiments.

Once a loss is confirmed, the claim amount is credited directly to the farmer's Aadhaar-linked bank account. Farmers can raise grievances or check status through the Krishi Rakshak Portal and Helpline on the toll-free number 14447.

Who PMFBY Applies To

Eligibility under PMFBY is decided season by season, based on the notification issued for each state or union territory. In general, it applies to:

• Any farmer cultivating a notified crop in a notified area during a notified season, whether as an owner-cultivator, tenant, or sharecropper
• Loanee farmers: those with a sanctioned or renewed seasonal crop loan or Kisan Credit Card for a notified crop, provided they opt in
• Non-loanee farmers: those without a crop loan, who must apply on their own and pay the premium directly
• Tenant farmers and sharecroppers: eligible if they can produce cultivation or tenancy proof accepted by the state, such as a registered agreement or certificate

Because enrolment is voluntary and notification-based, a farmer should always confirm that both their crop and their village appear in the current season's official list before assuming they are covered.

Documents and Requirements

Requirements vary slightly by state, but the commonly required documents are:

• Aadhaar card
• Land ownership records, such as Record of Rights (RoR) or Land Possession Certificate (LPC)
• Tenancy or cultivation agreement, for tenant farmers and sharecroppers, where accepted by the state
• Bank passbook or account details, linked to Aadhaar, for the payout account
• A recent passport-size photograph
• Sowing certificate, where the state notification makes it mandatory
• Loan sanction or Kisan Credit Card details, for loanee farmers who wish to opt in

Step-by-Step Application Process

• Check the state notification. Confirm that your crop and village are notified for the current season on pmfby.gov.in before applying.
• Choose your enrolment channel. Loanee farmers apply through their bank branch; non-loanee farmers can apply through a Common Service Centre (CSC), the online portal, or an authorised insurance company agent.
• Fill the application accurately. Enter Aadhaar, land, crop, area, and bank details exactly as they appear on your official records.
• Pay the farmer's premium share. This is deducted from the loan account for loanee farmers who opt in, or paid directly by non-loanee farmers.
• Receive policy confirmation. You should get an SMS or portal confirmation with an application or policy number. Keep this safely.
• Report crop loss promptly. For a localised event, intimate the loss within 72 hours through the app, portal, helpline, or local agriculture office.
• Cooperate with the loss assessment. A surveyor or crop-cutting experiment is used to estimate the extent of yield loss.
• Track and receive the claim. Check status on the portal using your application number, and the payout is credited via Direct Benefit Transfer to your linked bank account.

Common Mistakes and Claim Rejection Reasons

Most PMFBY claim rejections stem from process errors rather than the scheme's design. The frequent ones are:

• Missing the 72-hour window to report a localised crop loss
• Land records that are not updated in the applicant's name, such as a pending mutation (dakhil kharij)
• A mismatch between the name on Aadhaar and the name on the bank account
• Incorrect bank account number or IFSC code, or an Aadhaar number not linked to the registered mobile, which blocks the Direct Benefit Transfer
• Enrolling under the wrong crop, wrong area, or an incorrect survey or Khasra number
• Applying for a crop or in a village that does not appear on that season's official PMFBY notification

Practical Tips

These pointers can help reduce delays and avoid an avoidable rejection:

• Confirm the notified crop list and enrolment cutoff date on pmfby.gov.in before applying, since both vary by state and season
• If you have a crop loan, check your bank passbook for a premium debit entry, since PMFBY enrolment is voluntary and not automatic
• Keep your Aadhaar linked to an active mobile number, since OTP-based verification is used at several stages
• Photograph or video crop damage soon after an event, in addition to filing the mandatory 72-hour intimation
• If a claim is delayed or rejected, raise it through the Krishi Rakshak Portal and Helpline first, and escalate to the District Level Grievance Redressal Committee if needed

Who Should Consider PMFBY

Farmers growing notified food, oilseed, commercial, or horticultural crops in a PMFBY-notified area

Small and marginal farmers looking for affordable protection against weather-related crop loss

Tenant farmers and sharecroppers who can produce cultivation proof accepted by their state

Farmers with a seasonal crop loan who want add-on protection through their existing bank relationship

PMFBY is not designed for market price fluctuations or crops that are not on the season's notified list. Farmers in that position should check with their local agriculture office about other applicable state or central schemes.

Frequently Asked Questions

What is PM Fasal Bima Yojana?

PM Fasal Bima Yojana is a government crop insurance scheme that pays farmers when a notified crop is damaged by natural calamities, pests, or disease. It was launched in February 2016 and is implemented through insurance companies empanelled in each state. Farmers pay only a small share of the premium, with the rest subsidised by the Centre and State governments.

Is PMFBY compulsory for farmers who have taken a crop loan?

No, PMFBY has been voluntary for all farmers, including loanee farmers, since Kharif 2020. A farmer with a Kisan Credit Card or seasonal crop loan must actively opt in before the bank deducts the premium.

What premium do farmers pay under PMFBY?

Farmers pay a maximum of 2% of the sum insured for Kharif food and oilseed crops, 1.5% for Rabi food and oilseed crops, and 5% for annual commercial or horticultural crops. The government subsidises the remaining actuarial premium, usually shared equally between the Centre and the State.

What happens if crop damage is not reported within 72 hours?

Missing the 72-hour reporting window is one of the most common reasons PMFBY claims are rejected, even when real damage has occurred. Losses should be reported immediately through the PMFBY app, the portal, the helpline, or the local agriculture office.

Can tenant farmers and sharecroppers apply for PMFBY?

Yes, tenant farmers and sharecroppers can apply if they can produce cultivation proof accepted by their state, such as a registered tenancy agreement or certificate. The exact documents required vary by state notification.

How is the PMFBY claim amount calculated?

For widespread calamities, loss is assessed using an area approach based on yield data from crop-cutting experiments and tools like YES-TECH. For localised events such as hailstorm or landslide, assessment is done individually after the farmer's 72-hour loss intimation.

How can I check my PMFBY application or claim status?

Visit pmfby.gov.in and check status using your application number, policy number, or registered mobile number. You can also call the Krishi Rakshak Portal and Helpline on the toll-free number 14447.

What should I do if my PMFBY claim is rejected?

First check the stated reason on the portal, since issues such as land record mismatches or a missed reporting deadline are common and sometimes correctable. If you disagree with the rejection, you can approach the District Level Grievance Redressal Committee with supporting documents.

Where to Go From Here

PM Fasal Bima Yojana is one part of a wider set of central and state schemes that support farm income and rural livelihoods. If you want to understand how such schemes are funded and structured at a policy level, see our explainer on How Government Grants Work.

For related reading on agricultural and rural welfare support, browse the government schemes section on Growthora.