I. The scheme provides Insurance coverage to all Farmers for their crops as notified by the State Governments
All farmers including sharecroppers and tenant farmers growing the notified crops in the notified areas are eligible for coverage.
All farmers availing Seasonal Agricultural Operations (SAO) loans from Financial Institutions (i.e. loanee farmers) for the notified crop(s) would be covered compulsorily.
It is mandatory for all loanee cultivators to insist on insurance coverage as per provisions of the Scheme.
b. Voluntary Component
The Scheme would be optional for the non-loanee farmers and cultivators desirous of availing insurance under PMFBY for any notified crop in any notified insurance unit may approach nearest bank branch/ PACS/ authorized channel
partner/ insurance intermediary of insurance company within cut-off date, fill-up proposal form completely in prescribed format, submit form and deposit requisite premium to bank branch/ Insurance Intermediary / CSC Centers along with
necessary documentary evidence regarding his insurable interest in cultivating land/ crop (e.g.ownership/ tenancy/ cultivation rights) proposed for insurance.
II. Crops Covered
All crops are covered under the scheme such as Food& Oilseeds crops and Annual Commercial/Horticultural Crops for which past yield data is available.
In addition for perennial crops, pilots for coverage can be taken for those perennial horticultural crops for which standard methodology for yield estimation is available.
III. Coverage of Risks and Exclusions under the scheme
The Scheme operates on the principle of “Area Approach” in the selected Defined Areas which are called Insurance Unit (IU) , basis Crops and Defined Areas in accordance with decision taken in the State level coordination
committees on crop insurance of the respective State/UT Government . These units are notified as insurance unit applicable to Village/Village Panchayat or any other equivalent unit for major crops. For other all other crops it may
be a unit of size above the level of Village / village Panchayat.
Following stages of the crop and risks leading to crop loss are covered under the scheme.
a. Prevented Sowing/ Planting Risk: In case of majority of insured crops of a notified area are prevented from sowing/planting due to adverse weather conditions such as deficit rainfall or adverse seasonal conditions, the insured
crops that will be eligible for indemnity claims upto maximum of 25% of the sum-insured.
b. Standing Crop (Sowing to Harvesting): Comprehensive risk insurance is provided to cover yield losses due to non- preventable risks, viz. Drought, Dry spells, Flood, Inundation, Pests and Diseases, Landslides, Natural
Fire and Lightening, Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane and Tornado.
c. Post-Harvest Losses: Coverage is available only up to a maximum period of two weeks from harvesting for those crops which are allowed to dry in cut and spread condition in the field after harvesting against specific
perils of hailstorm, cyclone, cyclonic rains and unseasonal rains.
For the claims arising out of crop damage due to post-harvest losses and localised risks, arising out of hailstorm, cyclone or cyclonic rains / unseasonal rains throughout the country, resulting in damage to harvested crop lying
in the field in ‘cut and spread’ condition for sole purpose of drying only , upto a maximum period of two weeks (14days) from harvesting is also covered and the assessment of damage will be made on individual farm basis.
d. Localized Calamities: Loss/ damage resulting from occurrence of identified localized risks of hailstorm, landslide, Inundation, cloud burst and natural fire due to lightening affecting isolated farms in the notified
area.
e. Add-on coverage for crop loss due to attack by wild animals: The States may consider providing add-on coverage for crop loss due to attack by wild animals wherever the risk is perceived to be substantial and is identifiable.
Detailed protocol and procedure for evaluation of bids will be issued separately by GOI in consultation with Ministry of Environment and Forest and GIC Re. The add-on coverage will be optional for the farmers and applicable notional
premium will be borne by the farmer, however the State Govts may consider providing additional subsidy on this coverage, wherever notified. The actuarial premium rates for add-on coverage should be sought in the bid itself from the
Insurance Companies; however the add-on actuarial premium rate will be considered separately and shall not form part of evaluation of L1.
f. Yield loss damage for localised calamities and post harvest losses will be assessed on the basis of individual insured farm level and hence lodging of loss information by farmer/designated agencies is essential. For remaining
risks losses are due to widespread calamities. Hence lodging of information for claims by insured farmers / designated agencies for such wise spread calamities is not essential. Claims will be calculated based on the loss assessment
report/average yield submitted by concerned State
Note: Losses arising out of war and nuclear risks, malicious damage and other preventable risks shall be excluded.
IV. Indemnity Level applicable for different crops
Coverage is provided upto different indemnity levels of 70%, 80% and 90% corresponding to high, moderate and low risk level, respectively, of the areas basis the type of crops and is notified for crops and areas as per
notified unit applicable.
V. Premium
The Maximum Premium payable by the farmers will be 2% for all Kharif Food & Oilseeds crops, 1.5% for Rabi Food & Oilseeds crops and 5% for Annual Commercial/Horticultural Crops or actuarial premium rate whichever is less.
The difference between premium and the rate of Insurance charges payable by farmers shall be shared equally by the Centre and State.
VI. Basis of Claims Settlements
The claims payout would be made, basis the Area Approach, subject to the following:
IMPORTANT NOTE:
For any losses arising out of the Prevented sowing/Planting risk, Standing crop (Sowing to Harvesting), Post Harvest Losses and Localized Calamities, the farmer should contact our company and intimate the loss within 72 hours of the event occurring along with survey number-wise insured crop and acreage affected and the premium payment verification details as given to the Banks/ Intermediary/ CSC centers. Local Newspaper cutting and any other available evidence to substantiate occurrence of loss event and severity of the loss, if any should also be provided as applicable.