Crop insurance is a means of protecting the agriculturist against financial losses due to uncertainties that may arise from crop failures/losses arising from named or all unforeseen perils beyond their control.

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.

Weather Based Crop Insurance aims to mitigate the hardship of the insured farmers against the likelihood of financial loss on account of anticipated crop loss resulting from incidence of adverse conditions of weather parameters like rainfall, temperature, frost, humidity etc.

1) Food crops (Cereals, Millets and Pulses),

2) Oilseeds,

3) Annual Commercial / Annual Horticultural crops

1. Sum Insured per hectare for both loanee and non-loanee farmers will be same and equal to the Scale of Finance as decided by the District Level Technical Committee, and would be pre-declared by SLCCCI and notified. No other calculation of Scale of Finance will be applicable. Sum Insured for individual farmer is equal to the Scale of Finance per hectare multiplied by area of the notified crop proposed by the farmer for insurance. 'Area under cultivation' shall always be expressed in 'hectare'.

2. Sum insured for irrigated and un-irrigated areas may be separate

1. The Actuarial Premium Rate (APR) would be charged under PMFBY by implementing agency (IA). The rate of Insurance Charges payable by the farmer will be as per the following table:

• Agriculture Insurance Company
• Cholamandalam MS General Insurance Company
• Reliance General Insurance Co. Ltd.
• Bajaj Allianz
• Future Generali India Insurance Co. Ltd.
• HDFC ERGO General Insurance Co. Ltd.
• IFFCO Tokio General Insurance Co. Ltd.
• Universal Sompo General Insurance Company
• ICICI Lombard General Insurance Co. Ltd.
• Tata AIG General Insurance Co. Ltd.
• SBI General Insurance
• United India Insurance Co.

1. RISKS:-
Following risks leading to crop loss are to be covered under the scheme:-
1.1. YIELD LOSSES (standing crops, on notified area basis): Comprehensive risk insurance is provided to cover yield losses due to non-preventable risks, such as
(i) Natural Fire and Lightning
(ii) Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado etc.
(iii) Flood, Inundation and Landslide
(iv) Drought, Dry spells
(v) Pests/ Diseases etc. 5 8.

1.2. PREVENTED SOWING (on notified area basis):-
In cases where majority of the insured farmers of a notified area, having intent to sow/plant and incurred expenditure for the purpose, are prevented from sowing/planting the insured crop due to adverse weather conditions, shall be eligible for indemnity claims upto a maximum of 25% of the sum-insured

1.3. POST-HARVEST LOSSES (individual farm basis):
Coverage is available upto a maximum period of 14 days from harvesting for those crops which are kept in “cut & spread” condition to dry in the field after harvesting, against specific perils of cyclone / cyclonic rains, unseasonal rains throughout the country.

1.4. LOCALISED CALAMITIES (individual farm basis):-
Loss / damage resulting from occurrence of identified localized risks i.e. hailstorm, landslide, and Inundation affecting isolated farms in the notified area.

2. EXCLUSIONS:-
Risks and Losses arising out of following perils shall be excluded:- War & kindred perils, nuclear risks, riots, malicious damage, theft, act of enmity, grazed and/or destroyed by domestic and/or wild animals, In case of Post-Harvest losses the harvested crop bundled and heaped at a place before threshing, other preventable risks.