PM Fasal Bima Yojana
Premium Calculator

PM Fasal Bima Yojana (PMFBY) is the Government of India's flagship crop insurance scheme launched in 2016, replacing the older NAIS and MNAIS schemes. It provides comprehensive financial protection to farmers against crop failure due to non-preventable natural risks throughout the crop cycle.

How it works: A farmer pays a small capped premium (maximum 2% for Kharif, 1.5% for Rabi, 5% for commercial crops) at the time of enrollment. The actual actuarial premium — which reflects the true risk — can be 8-20% of sum insured. The difference between the actuarial premium and the farmer's contribution is paid equally by the Central Government and the State Government as a subsidy.

Coverage spans the entire crop cycle: from pre-sowing (prevented sowing due to deficit rainfall) to post-harvest (14 days for cut crops in field). Claims are settled through Crop Cutting Experiments for area-based widespread losses, or through rapid field surveys for localised events like hailstorm.

PMFBY has one of the lowest farmer-paid premiums among crop insurance schemes globally:

• Kharif crops (Paddy, Maize, Soybean, Groundnut, Cotton): Maximum 2% of Sum Insured
• Rabi crops (Wheat, Mustard, Gram, Lentil): Maximum 1.5% of Sum Insured
• Annual/Commercial/Horticultural crops (Sugarcane, Cotton in some states): Maximum 5% of Sum Insured

Example: A farmer with 2 acres of Paddy, Sum Insured Rs.40,000/acre = Rs.80,000 total coverage. Farmer pays just Rs.1,600 (2% of Rs.80,000). The government pays the remaining actuarial premium — often Rs.6,000-16,000 on top — so the farmer receives up to Rs.80,000 in claim while paying only Rs.1,600.

The Sum Insured per crop per district is fixed annually by SLCCCI (State Level Coordination Committee on Crop Insurance). These notifications are published on pmfby.gov.in before each season's enrollment window.

You can enroll in PMFBY through any of these channels:

1. Bank/NBFC: If you have a Kisan Credit Card (KCC) or crop loan, visit your bank branch during the enrollment window. Bring your land records and sowing declaration.
2. PMFBY Portal: Register at pmfby.gov.in for online self-enrollment.
3. CSC / Jan Seva Kendra: Your nearest Common Service Centre operator can enroll you.
4. Crop Insurance App: Download from Google Play Store or Apple App Store. Available in multiple languages.
5. Insurance Company: Contact the empanelled insurance company for your district directly.

Documents needed: Aadhaar card, land records (7/12 Utara or equivalent), bank account passbook, sowing certificate/declaration. The enrollment cutoff is typically 2 weeks before the last date of sowing for that season.

Critical: Notify within 72 hours of crop damage for localised claims. For widespread calamities, the government initiates assessments automatically, but self-notification is still advisable.

Notification methods:

• Toll-free helpline: 14447 (available 24x7)
• Crop Insurance mobile app (provide GPS coordinates and photos)
• Your bank branch where the policy was taken
• Insurance company branch/agent

After notification: For localised calamities, an insurance surveyor must visit within 10 days. For widespread crop failure, State Agriculture Department conducts Crop Cutting Experiments (CCE) — you do not need to do anything further for CCE-based claims. Claim = (Threshold Yield - Actual Yield) / Threshold Yield x Sum Insured. Amount is credited directly to your Aadhaar-linked account.

Since the 2020-21 Kharif season, PMFBY is voluntary for all farmers across India, including those with Kisan Credit Cards (KCC) and crop loans. Before 2020, loanee farmers were automatically enrolled and had insurance premium auto-deducted.

Important nuances:

• Some states may still enforce PMFBY as mandatory for loanee farmers within their jurisdiction — check your state government notifications.
• Even under the voluntary regime, your bank may have historically auto-deducted premiums. Check your loan account statements.
• If you want to opt out, you must submit a formal declaration to your bank before the cutoff date for that season.
• If you want to opt in (enroll), do so proactively at your bank or via the PMFBY portal — don't assume it is automatic.

Recommendation: Given the extremely low farmer premium (1.5-2% of sum insured) versus the risk of crop failure, most agricultural economists recommend all eligible farmers to enroll voluntarily.

Crops covered: All food crops (cereals, millets, pulses), oilseeds, and annual commercial and horticultural crops as notified by the state government. Coverage list varies by state — your state's SLCCCI notification lists exact crops for each district and season.

Risks covered: Drought, dry spells, flood, inundation, widespread pest/disease, landslide, natural fire, lightning, storm, hailstorm, cyclone, typhoon, prevented sowing, and post-harvest losses (14 days for cut crops in field for cyclone/unseasonal rain).

Risks NOT covered (exclusions):

• War, nuclear risks, riots, malicious damage
• Theft or act of enmity
• Post-harvest losses beyond 14 days
• Storage losses after harvest
• Perennial crops (most) — covered under RWBCIS (Weather Based scheme) instead
• Crops damaged by preventable events where farmer was negligent

Note: Livestock, fish, and tree-based crops have separate government insurance schemes (PMFBY specifically covers seasonal crops).