Pradhan Mantri Fasal Bima Yojana (PMFBY): Premium Rates, Coverage and Key Facts
Last updated: 2026-11-13 · MockMentor
Pradhan Mantri Fasal Bima Yojana (PMFBY) is India's main crop insurance scheme. It was launched on 18 February 2016 and first applied from Kharif 2016. Farmers pay a small, uniform premium, and the Centre and States pay the rest. It follows the principle of "One Nation, One Crop, One Premium".
In one line: low-premium insurance that protects farmers against crop loss from natural risks, from before sowing to after harvest.
At a glance
| Item | Details |
|---|---|
| Launched | 18 February 2016 |
| Ministry | Agriculture and Farmers Welfare |
| Who can join | All farmers, including sharecroppers and tenants, growing notified crops in notified areas |
| Also covered | Tribal farmers cultivating forest land under the Forest Rights Act, and farmers on community-owned land |
| Portal | National Crop Insurance Portal (pmfby.gov.in) |
| Helpline | 14447 |
Maximum premium paid by farmers
| Season | Crops | Farmer's premium |
|---|---|---|
| Kharif | Food grains and oilseeds | 2% of sum insured |
| Rabi | Food grains and oilseeds | 1.5% of sum insured |
| Kharif and rabi | Annual commercial and horticultural crops | 5% of sum insured |
The rest of the premium is paid by the Centre and States 50:50, or 90:10 in North-Eastern and Himalayan States.
Risks covered
- Basic cover: yield loss from drought, dry spells, floods, pests and disease, landslides, lightning fires, storms, hailstorms and cyclones.
- Add-ons (chosen by States): prevented sowing, mid-season adversity, post-harvest losses up to 14 days, localised calamities, and wild animal attacks.
- Not covered: war, nuclear risk, malicious damage and preventable risks.
Technology in PMFBY
- YES-TECH: yield estimation by remote sensing, with at least 30% weight to technology, to cut reliance on crop-cutting experiments.
- WINDS: a network of weather stations at block and panchayat level.
- FIAT: a Fund for Innovation and Technology of ₹824.77 crore, approved in January 2025.
- 12% penalty on insurers for delayed claims, worked out automatically on the portal.
Facts to remember
- In January 2025, the Cabinet extended PMFBY and the weather-based scheme RWBCIS to 2025-26 with ₹69,515.71 crore.
- States must deposit their premium share in an escrow account in advance from Kharif 2025.
Possible exam questions
- Why do claims under crop insurance get delayed? How can technology help?
- Compare yield-based insurance (PMFBY) with weather-index insurance (RWBCIS).
Complete notes in our courses: the Super-Elite and Elite courses carry the full PMFBY chapter with updates and practice MCQs. Compare the courses.
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