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Trusted Source for Mandi Bhav Updates
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Jul 02, 2026
by Pankaj Sihag
PMFBY Crop Insurance Scheme: How Farmers Can Claim Crop Loss Compensation
PMFBY covers crop loss caused by natural calamities, notified pest attacks, and disease outbreaks at low premium rates.
Farmers pay only 2% for kharif crops, 1.5% for rabi crops, and 5% for commercial or horticultural crops.
To claim compensation for localised crop loss, the damage must usually be reported within 72 hours.
Keeping Aadhaar, bank details, and crop records updated helps avoid claim delays.
The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a government-backed crop insurance India scheme launched in February 2016 to protect farmers from crop losses caused by weather and other notified risks.
India’s farming still depends heavily on seasonal rainfall. A delayed monsoon, hailstorm, flood, drought, or pest outbreak can damage months of hard work in a few days. PMFBY helps reduce that financial risk.
Under the scheme, farmers pay only a small part of the premium, while the central and state governments cover the remaining amount. If the crop is damaged due to a covered event, the approved compensation is transferred directly to the linked bank account of the affected farmer.
The Government of India has approved an outlay of ₹69,515.71 crore for PMFBY and RWBCIS till 2025–26. In 2024–25, total enrolment reached 4.19 crore farmers, the highest since the scheme began.
Understanding insurance eligibility for farmers under PMFBY is important before applying.
Any farmer growing a notified crop in a notified area during the notified season can apply.
This includes:
Owner-cultivators
Tenant farmers
Sharecroppers
Loanee farmers (KCC or crop loan holders)
Non-loanee farmers
PMFBY has been voluntary for all farmers since Kharif 2020.
To apply, farmers usually need:
Aadhaar card
Land ownership records, or tenancy proof where applicable
Bank passbook
Crop details
Sowing proof, if required by the state
Before applying, farmers should check whether their crop and village are officially notified under PMFBY for that season.
PMFBY covers losses at different stages of farming:
If severe weather prevents sowing completely, farmers can claim compensation for that loss.
In many notified cases, this can be up to 25% of the sum insured.
This covers crop damage caused by:
Drought
Flood
Dry spells
Hailstorm
Cyclone
Landslide
Pest attack
Disease outbreak
For standing crops, compensation is usually based on area-level yield assessment.
If harvested crops kept in the field for drying are damaged by rain, hailstorm, or cyclone within 14 days, farmers can claim.
This is assessed at the individual farm level.
Individual losses caused by:
Hailstorm
Waterlogging
Landslide
Inundation
can be claimed separately.
This is one of the most important parts of the scheme for many kisaans.
PMFBY is built to keep premiums affordable.
|
Crop Type |
Farmer Pays |
Example on ₹40,000 Sum Insured |
|
Kharif (dhan, makka, soyabean) |
2% of sum insured |
₹800 |
|
Rabi (gehun, sarso, chana) |
1.5% of sum insured |
₹600 |
|
Commercial / Horticultural |
5% of sum insured |
₹2,000 |
Example:
If your crop is insured for ₹40,000:
You pay only ₹800 (2% for kharif crops)
The government pays the remaining insurance cost
This keeps the premium low for farmers while still giving crop protection.
Check your policy status at the PMFBY portal or through the crop insurance app.
The PMFBY claim process is simple, but timing matters:
If your crop is damaged by a localised event, report it within 72 hours.
You can report through:
Crop insurance app
PMFBY portal
Toll-free helpline 14447
Bank branch
Insurance office
Local agriculture officer
This is the most important step.
Keep the complaint number or acknowledgement safely.
This helps track your claim.
The insurer or authorised officials inspect the field and assess the damage.
This may involve:
Physical inspection
Geo-tagged photos
Satellite data
Drone-based checks
After verification and approval, the compensation amount is calculated.
The approved claim amount is transferred directly into the farmer’s linked bank account.
Make sure Aadhaar and bank details are updated and Farmer ID is created (For Rajasthan State).
Farmers must enrol before the season deadline.
Typical deadlines:
Dates may vary by state.
Farmers can apply through:
Banks
Common Service Centres (CSCs)
Crop insurance app
Missing the deadline usually means no insurance cover for that season.
Most rejections happen because:
Not enrolling at all
Missing the season deadline
Reporting crop loss after 72 hours
Wrong crop details during registration
Aadhaar not linked to bank account
Applying for a crop or village not officially notified
The PMFBY crop insurance scheme is one of the most practical agriculture insurance benefits available to Indian farmers today. The premiums are low, the coverage is wide, and the financial support can help reduce losses after difficult seasons.
But the scheme works only when farmers understand the rules clearly, enrol on time, and report losses quickly.
Before every sowing season, check whether your crop and village are notified under PMFBY.
For regular farming updates, government scheme alerts, and mandi bhav, keep checking KhetiKisaan.
Yes. Tenant farmers and sharecroppers can apply if they have valid tenancy proof or state-approved cultivation documents.
You can check through the PMFBY portal, crop insurance app, or by calling 14447.
For area-based crop losses, compensation is calculated using crop cutting experiments (CCEs) to compare actual yield against threshold yield.
Yes, if the loss is due to a localised calamity like a hailstorm or waterlogging. But it must be reported quickly.
Compensation depends on the sum insured, notified yield, and loss assessment. In severe cases, it may go up to the full sum insured.
