PMFBY (2016) provides affordable crop insurance covering yield, localized and post-harvest losses, with premiums of 2% Kharif, 1.5% Rabi and 5% commercial/horticultural crops.
News: In 10 years, 92.46 crore+ farmer applications have been insured, with 26.33 crore+ applications receiving claims worth ₹2.06 lakh crore+.
Scheme Features
- Launched: February 2016 → affordable crop insurance for farmers.
- Coverage: Loanee + non-loanee farmers, including eligible tenant farmers + sharecroppers.
- Premium: Kharif → 2% | Rabi → 1.5% | Commercial/Horticultural → 5%.
- Subsidy: Centre + State → 50:50; NE & Himalayan States/UTs → 90:10.
- Prevented Sowing: Claim up to 25% of Sum Insured.
- Post-Harvest: “Cut-and-spread” crops covered up to 14 days.
Risks Covered
- Yield Loss: Drought, floods, cyclones, hailstorms, pests, diseases etc.
- Localized Calamities: Hailstorm, landslide, inundation, cloudburst, natural fire.
- Post-Harvest Loss: Specified cyclonic/unseasonal rain events.
- Exclusions: War, nuclear risks, riots, theft and preventable/man-made risks.