The Government of India's flagship crop insurance scheme — implemented by the insurer as an empanelled partner. 78.4 crore farmers insured since 2016. ₹1.83 lakh crore in claims paid. Covers drought, flood, hailstorm, pest, disease, post-harvest loss and more. Farmer pays only 2% (Kharif) or 1.5% (Rabi). Government pays 95–98.5% of actuarial premium. Claims paid directly to your Aadhaar-linked bank account.
the insurer Crop· 1st Crop Product· Govt Flagship· One Nation One Scheme One Premium
PMFBY is India's flagship crop insurance scheme — launched February 18, 2016 — under the "One Nation, One Scheme, One Premium" motto. It replaced three older schemes (MNAIS, WBCIS, NAIS) and is administered by the Ministry of Agriculture. the insurer is one of 18 empanelled implementing insurance companies. As of June 2025: 78.4 crore farmer applications insured, ₹1.83 lakh crore in claims disbursed.
Farmer applications insured since 2016 inception — PIB June 2025
Total claims paid to farmers since inception — PIB June 2025
Largest crop insurance scheme by farmer enrolment — IBEF 2023
"He invested ₹20,000 in PMFBY. In 2022, heavy rains ruined his entire crop. He was heartbroken. But he had made one smart decision — he chose to secure his farm by investing in PMFBY. PMFBY paid him 9 times his premium. This helped him recover and continue farming. In 2023, the weather played spoilsport again. His banana and areca nut crops were damaged. But once again, PMFBY came to his rescue. He received 6.6 times his premium."
2022: 9× premium returned· 2023: 6.6× premium returned· Direct DBT to bank accountFarmer pays maximum 2% (Kharif), 1.5% (Rabi), or 5% (Commercial). Government pays 95–98.5% of actuarial premium — 50:50 between Centre and State. "One Nation, One Crop, One Premium" — uniform across India.
Govt pays 95–98.5%Pre-sowing (prevented sowing) through post-harvest (14 days). Standing crop loss, localised calamities, mid-season adversity. No crop stage left unprotected. New 2025 add-on: wild animal damage at State's cost.
Pre-Sow → Post-HarvestClaims paid directly to farmer's Aadhaar-linked bank account via the Digi-Claim system. "₹18,596.64 was transferred directly to Ajay's account via the Digi-Claim system." No intermediary delays.
Aadhaar-Linked DBT"YES-Tech uses satellite imagery to assess yields, reducing disputes and ensuring timely payouts." Gradual migration from crop cutting experiments to remote sensing. Madhya Pradesh: India's first 100% tech-based assessment state.
Satellite + Drone"From Kharif 2024, if there is a delay in claim payment, a 12% penalty is automatically added." The only crop insurance scheme with an automatic penalty protecting farmers against delayed settlement.
Automatic Penalty"All farmers including sharecroppers and tenant farmers growing the notified crops in the notified areas are eligible." Coverage extended to those who farm land they don't own — the first the insurer product to explicitly include non-owners.
All Farmers EligiblePre-Sowing· Standing Crop· Post-Harvest· Localised· Mid-Season· Wild Animals (2025)
"PMFBY provides comprehensive coverage to the farmers against many such unforeseen crop losses." — pmfby.gov.in. Coverage spans the ENTIRE crop cycle from before sowing to after harvest — the most complete crop risk coverage of any Indian insurance product.
Unable to sow due to low rainfall or adverse weather. Pre-season coverage — relief before crop even begins.
Sowing to harvest. Drought· Flood· Hailstorm· Pest· Disease· Cyclone· Landslide· Lightning· Fire. CCE + YES-TECH yield assessment.
Crops drying in field after cut. Hailstorm· Cyclone· Unseasonal rain. Individual farm assessment up to 14 days.
Isolated farm events: Hailstorm· Landslide· Inundation. Individual assessment — not area-wide. Specific farm relief.
State add-on. Crop facing adversity mid-season requiring re-sowing. Advance relief to farmers.
Elephants· Nilgai· Wild Boar. Individual assessment. At State Govt's cost. PIB Feb 4, 2026 notified.
"Inundation as a risk cover is available to all notified crops under PMFBY. However, for hydrophilic crops like paddy, jute, mesta, sugarcane, such cover is available except in case of localized claims." — PIB (Feb 4, 2026) confirmed. Paddy, jute, sugarcane naturally tolerate some water — so localised inundation claims are not available for these crops, but area-wide inundation (affecting the entire insurance unit) IS covered.
Owner Farmers· Tenant Farmers· Sharecroppers· Loanee· Non-Loanee
"All farmers (including sharecroppers and tenant farmers) growing notified crops in the notified areas are eligible for coverage, if they have insurable interest for the insured crops." As of Kharif 2020, PMFBY is VOLUNTARY for all farmers including those with crop loans — a landmark reform that changed the scheme from compulsory to opt-in.
Threshold Yield· Scale of Finance· 7-Year Data· Indemnity Level
"The insurance claim size is based on the proportion of shortfall from the threshold yield multiplied by the sum insured." The claim is entirely formula-based — no subjective assessment or negotiation. Three variables: threshold yield, actual yield, and your sum insured.
YES-TECH· WINDS· NCIP· Digi-Claim· CCE· Satellite· Drone· UAV
"PMFBY envisages use of improved technology including satellite imagery, drones, Unmanned Aerial Vehicle (UAV) and remote sensing." PMFBY is transforming from paper-based crop cutting experiments to a satellite-driven, AI-assisted, direct-benefit-transfer system — the most technologically innovative insurance product in the entire the insurer portfolio.
"YES-Tech uses satellite imagery to assess yields, reducing disputes and ensuring timely payouts." Gradual migration from CCE to remote sensing. Paddy and wheat from Kharif 2023 (30% mandatory weightage). Soybean added Kharif 2024. Madhya Pradesh: first state with 100% technology-based assessment. Uses satellite imagery, drones, and UAVs for objective yield estimation — reducing farmer disputes and settlement time.
"WINDS supports not only YES-TECH but also plays a vital role in drought and disaster management, accurate weather forecasting and the development of improved parametric insurance products." Automated weather station network across India providing real-time weather data to support YES-TECH yield estimation, claims processing, and the companion RWBCIS scheme. Enables rapid damage assessment after cyclones, floods, and drought events.
"End-to-end auto administration of the scheme." — pmfby.gov.in. "NCIP portal is now the sole source of enrolment for PMFBY, ensuring centralised data.Integration with PFMS (Public Finance Management System) from Kharif 2024 to provide timely and transparent processing of all claims." Single platform integrating all 18 empanelled insurers, all banks, state governments, and the Central Government with real-time data.
"₹18,596.64 was transferred directly to Ajay's account via the Digi-Claim system." Claim amounts transferred directly to farmer's Aadhaar-linked bank account — bypassing all intermediaries. No branch visits, no paperwork for collection, no delays from middlemen. The most farmer-friendly feature of PMFBY — money appears in the farmer's account within days of claim calculation.
Voluntary 2020· 12% Penalty 2024· Escrow 2025· Wild Animals 2026· ₹69,515 Cr Budget
PMFBY has been continuously improved since its 2016 launch. The most recent reforms address the two biggest farmer complaints: delayed payments and inability to opt out. Both have been addressed — voluntary enrollment since 2020 and an automatic 12% penalty for delays since Kharif 2024.
"Enrolment made voluntary for loanee farmers for first time in history of crop insurance." — pmfby.gov.in. Previously, all farmers with crop loans were mandatory enrolled. From Kharif 2020, even farmers with crop loans can choose to opt out. Non-loanee coverage grew to 55% of total by 2023-24.
"From Kharif 2024, if there is a delay in claim payment, a 12% penalty is automatically added." The ONLY crop insurance scheme in India with an automatic insurer/state penalty. Paid directly to the farmer. No complaint process needed — the penalty accrues automatically.
"Opening of ESCROW Account by the State Government for deposit of their premium share in advance has been made mandatory w.e.f. Kharif 2025." — PIB (Feb 2026) confirmed. States must deposit their 50% premium share BEFORE the season starts — eliminating mid-season funding gaps that caused claim delays.
"States have been allowed to notify the losses by wild animals on individual assessment as add on cover at the cost of State Government." — PIB (Feb 4, 2026) confirmed. Individual farm assessment for crop damage by elephants, nilgai, wild boar etc. State pays the additional premium — farmer has no extra cost.
"The Union Cabinet in January 2025 approved the continuation of PMFBY and RWBCIS till 2025-26 with a total budget of ₹69,515.71 crore." Budget 2025-26 allocated ₹12,242 crore for PMFBY — ensuring continued implementation with the same subsidy structure.
"The Central Government's premium subsidy has been separated from the State share. This allows farmers to receive the Central share of the claim without waiting for State funds." Structural reform preventing State funding delays from holding up farmers' claim payments.
"Several states including Bihar, West Bengal, Jharkhand, and Gujarat have exited PMFBY due to premium subsidy burden, running their own schemes instead." If you are in these states, PMFBY may not be available — but state governments typically offer alternative crop insurance schemes. Contact your local agriculture department or call 022 4302 0000 to confirm which scheme is available in your state and district.
Area-Yield Based vs Weather-Index Based· Two Companion Schemes
"The basic difference between the PMFBY and RWBCIS is in its methodology for calculation of admissible claims to the farmers." Both schemes were launched simultaneously in 2016 and are jointly continued. The key difference: PMFBY measures actual yield; RWBCIS measures weather parameters (rainfall, temperature, humidity).
| Feature | 🌾 PMFBY | 🌦️ RWBCIS |
|---|---|---|
| Claim trigger basis | ACTUAL YIELD shortfall (area-yield based) | WEATHER PARAMETERS (weather-index based) |
| Measurement method | Crop Cutting Experiments (CCE) + YES-TECH satellite | Automated weather station data (rainfall, temp, humidity, wind) |
| Data requirement | Requires 7+ years of historical yield (CCE) data | Only weather station data needed — no yield history |
| Best suited for | Food crops, oilseeds with available yield data | Horticultural crops, areas without CCE history |
| Settlement speed | After yield data confirmed (CCE/YES-TECH cycle) | Potentially faster — based on weather station data |
| Premium structure | 2% / 1.5% / 5% farmer share (same) | 2% / 1.5% / 5% farmer share (same) |
| Basis risk | Lower — based on actual yield in your area | Higher — weather may not perfectly correlate with crop loss |
| the insurer implements? | ✅ YES — as empanelled insurer | ✅ YES — as empanelled insurer |
| Which scheme for your area? | Determined by the State Government for each crop and area. If your crop/area has 7+ years of CCE data → PMFBY. If insufficient yield history → RWBCIS. Both have identical premium structure for farmers. Contact your agriculture department or call 022 4302 0000 to confirm which scheme covers your crop in your district. | |
IBEF + Official PMFBY Guidelines + pmfby.gov.in
PMFBY covers NON-PREVENTABLE natural risks only. Deliberate acts, war, theft, and risks from government action are excluded. The scheme also does not cover crops or areas that are not specifically notified by the State Government for that season.
"Loss or damage to notified insured crops due to war, nuclear risks, malicious damage, and other preventable risks is excluded from the scope of coverage." Standard universal exclusion across all PMFBY-implementing insurers.
If the farmer intentionally damages their own crop — such as setting fire to crops to claim insurance — the claim is excluded as malicious damage. PMFBY covers non-preventable natural risks; deliberate acts are outside the scheme's scope.
Losses from risks that the farmer could have reasonably prevented — such as failure to control a localized pest infestation despite timely warning by agriculture department — may be subject to scrutiny. PMFBY covers risks that are genuinely non-preventable under normal farming practices.
Crops that are not notified by the State Government for that season in that area are NOT covered — even if they are listed as PMFBY-eligible crop types nationally. Notification is done season-by-season, district-by-district. Always verify your specific crop is notified before enrolling.
Post-harvest coverage applies only for up to 14 days (two weeks) after harvesting — and only for crops that are required to be dried in the field (cut-and-spread or small bundles). Once crops have been stored or transported, further losses are not covered.
Farmers who do not have insurable interest in the crop — i.e., they have no legal or economic stake in the crop's success — cannot enrol under PMFBY. Sharecroppers and tenant farmers CAN enrol, but they must demonstrate their insurable interest through documentation.
Losses arising from government action — such as crop seizure, destruction ordered by authorities for disease control, or forced harvesting — are typically excluded. The scheme covers natural calamities and risks outside the farmer's control, not government policy decisions.
Theft of standing crops or harvested produce, destruction by trespassers, and other non-natural causes of loss are excluded. PMFBY exclusively covers weather-related and natural risk events — fire, flood, hailstorm, drought, pest, disease — not human-caused damage from third parties.
72 Hours· Aadhaar-Linked DBT· CCE + YES-TECH· NCIP Portal
PMFBY has two distinct claim mechanisms: (1) Area-based yield claims for standing crop loss — automated through CCE/YES-TECH assessment, no individual farm visit needed. (2) Individual assessment claims for localised damage and post-harvest losses — requires 72-hour intimation. Claims paid via Digi-Claim directly to bank account.
For localised damage, post-harvest losses, and wild animal damage: "Farmers may intimate the details of the loss within 72 hours of the calamity either to the insurer or the concerned bank or local agriculture department." — Bajaj General (PMFBY partner) confirmed. For standing crop losses: area-based assessment by State Govt — no individual intimation needed, but informing is advisable.
For standing crop loss (the largest claim category): State Government conducts Crop Cutting Experiments (CCEs) to determine actual yield in the insurance unit. YES-TECH satellite data supplements from Kharif 2023 (30% weightage). Both data sources fed into the NCIP portal for automatic claim calculation.
NCIP portal automatically calculates claim amounts using the formula: (Threshold Yield − Actual Yield) ÷ Threshold Yield × Sum Insured. The integration with PFMS (Public Finance Management System) from Kharif 2024 enables transparent, traceable fund flow. Claim amounts are auto-generated for all eligible enrolled farmers in affected insurance units.
Calculated claim amounts transferred directly to farmer's Aadhaar-linked bank account via Digi-Claim. "It was a relief — my family could breathe easy." — Ajay (UNDP case study, MP, 2023). No need to visit bank, insurance company, or government office. Penalty: "From Kharif 2024, if there is a delay, a 12% penalty is automatically added" — protecting farmers from insurer/state delays.
Check enrollment status and claim status at pmfby.gov.in using your policy number or Aadhaar. "Visit your local agriculture department or bank that processed your policy and request a quick PMFBY status check." PMFBY helpline available on the NCIP portal for queries. Probitas can also assist: 022 4302 0000.
PMFBY Frequently Asked Questions
Enroll in PMFBY via the insurer through Probitas
Contact Probitas for assistance enrolling in PMFBY through the insurer. Our agricultural insurance specialists will confirm your crop is notified in your district, check cut-off dates, complete the insurer enrollment, and ensure your Aadhaar-linked bank account is set up for direct claim payment via Digi-Claim.
By submitting you agree to our Privacy Policy and Terms & Conditions. PMFBY is a Government of India scheme. the insurer is an empanelled implementing insurer. Probitas Insurance Brokers Pvt. Ltd. assists with enrollment and claim support. Premium paid by farmers is subsidised by the Government — actual amounts depend on your crop, district, and State Government notification. Aadhaar number is collected solely for DBT linkage verification. IRDAI Lic. No. 528.