How the Farmer Premium Is Fixed
Under PMFBY the farmer does not pay the full insurance premium. The scheme caps the farmer share at 2% of the sum insured for kharif food grain and oilseed crops, 1.5% for rabi food grain and oilseed crops, and 5% for annual commercial and horticultural crops. The rest of the premium charged by the insurance company is paid by the central and state governments.
What Is the Sum Insured?
The sum insured is the maximum cover per hectare for a crop. It is notified by the state for each district and season, and is normally based on the district scale of finance for that crop. That is why the same crop can carry a different sum insured, and a different premium, in two districts. Enter the figure notified for your crop above. If you do not know it, ask your bank branch or Common Service Centre, or look it up on the PMFBY portal.
Before You Enrol
- Only crops notified for your area in that season can be insured.
- Enrolment closes on the cut-off date in your state's notification, so check the date for your crop early in the season.
- Farmers with a crop loan can opt out by giving the bank a written request before the cut-off date.
- Report crop loss from a local calamity or post-harvest damage within 72 hours, through the Crop Insurance app, your bank or the insurer.
- Read the PMFBY guide and the claim process step by step.