Objective of the Scheme

Pradhan Mantri Fasal Bima Yojana (PMFBY) aims at supporting
sustainable production in agriculture sector by way of -
a) providing financial support to farmers suffering crop loss/damage arising
out of unforeseen events
b) stabilizing the income of farmers to ensure their continuance in farming
c) encouraging farmers to adopt innovative and modern agricultural practices
d) ensuring flow of credit to the agriculture sector; which will contribute to food
security, crop diversification and enhancing growth and competitiveness of
agriculture sector besides protecting farmers from production risks.
II. Coverage of Farmers
1. All farmers including sharecroppers and tenant farmers growing the
notified crops in the notified areas are eligible for coverage. However,
farmers should have insurable interest for the notified/ insured crops. The
non-loanee farmers are required to submit necessary documentary
evidence of land records prevailing in the State (Records of Right (RoR),
Land possession Certificate (LPC) etc.) and/ or applicable contract/
agreement details/ other documents notified/ permitted by concerned
State Government (in case of sharecroppers/ tenant farmers).
2. Compulsory Component
All farmers availing Seasonal Agricultural Operations (SAO) loans from
Financial Institutions (i.e. loanee farmers) for the notified crop(s) would be
covered compulsorily.
3. Voluntary Component
The Scheme would be optional for the non-loanee farmers.
4. Special efforts shall be made to ensure maximum coverage of SC/ ST/
Women farmers under the scheme. Budget allocation and utilization under
these segments should be in proportion of land holding of SC/ ST/ General
along with Women in the respective state/ cluster. Panchayat Raj
Institutions (PRIs) may be involved at various stages of implementation of
crop insurance schemes particularly in the identification of the crops and
beneficiaries, extension and awareness creation amongst farmers,
obtaining feed-back of the farmers while assessing the claim for prevented
sowing/ planting risk, localized perils, post-harvest losses and advance
payment of claims et