PMFBY: India’s Crop Insurance Scheme Explained

12-Dec-2025

Why PMFBY Was Launched

Launched on 18 February 2016, Pradhan Mantri Fasal Bima Yojana protects farmers from losses due to floods, droughts, pests, and diseases.

It is affordable, technology-driven, and transparent.

Key Objectives

• Provide financial aid for crop loss
• Stabilise farmer income
• Encourage modern farming
• Support credit and crop diversification
• Strengthen India’s agricultural resilience

Affordable Premiums

• Kharif crops: 2%
• Rabi crops: 1.5%
• Horticulture crops: 5%

The remaining premium is paid by the government, making crop insurance accessible for all.

What PMFBY Covers

• Natural disasters – floods, droughts, storms
• Pest attacks and crop diseases
• Post-harvest losses
• Prevented sowing and localised calamities

Eligibility

• All farmers – landowners, tenants, and sharecroppers
• Must grow notified crops in notified areas
• Valid land or lease documents required

What’s Not Covered

• Non-notified areas
• Farmer negligence
• Losses outside the crop cycle
• Failure to pay premium
• Events not meeting coverage criteria

How to Apply

• Online: Visit pmfby.gov.in
• Offline: Apply at banks or Common Service Centres (CSCs)

Upload land records, ID, and bank details.

Documents Needed

• Passport-size photo
• Aadhaar card
• Bank passbook
• Land records or tenancy proof
• Crop declaration

Technology in Action

PMFBY uses modern technology such as:

• Satellite imagery
• Drone monitoring
• Mobile apps for field reports

This ensures accuracy, transparency, and faster claim settlements.

Benefits for Farmers

• Financial security in bad seasons
• Boost to farm credit and mechanisation
• Confidence to try new crops
• Protection for families and livelihoods

Challenges Ahead

• Claim delays in some states
• Low awareness in rural belts
• Financial constraints for state participation
• Complicated paperwork for small farmers

Future of PMFBY

• Simplify the claim process
• Use more digital tools
• Raise awareness in local languages
• Stronger state participation for faster payouts

The Bottom Line

PMFBY is not just insurance – it is a lifeline for India’s farmers.

Secure crops, stable income, and peace of mind through every farming season.

Protect your crops and secure your farm income with PMFBY crop insurance. Learn more at your nearest Mahindra Tractor dealer!