What is Restructured Weather Based Crop Insurance and how is the payout triggered?

Restructured Weather Based Crop Insurance (RWBCIS) pays on measured weather, not on measured yield. For each notified crop a weather term sheet is fixed in advance that links specific weather parameters, such as rainfall, temperature, humidity or wind, to expected crop loss. A nearby reference weather station records the actual weather during the defined period. If the recorded weather crosses the trigger written in the term sheet, for example rainfall below a set level in a given window or too many days above a heat threshold, a payout is calculated from the term sheet automatically, without a field-by-field survey or crop-cutting experiment. The big advantage is speed and objectivity, since the trigger is the weather data, not a yield estimate. The limitation is basis risk, meaning the station reading may not perfectly match what happened in your exact field, so your real loss and the payout can differ. The crops, parameters, triggers and reference stations are notified per state and season, so confirm the term sheet for your crop and area on the PMFBY portal or with your insurer before relying on it.