PM Fasal Bima Yojana (PMFBY)
Crop insurance for farmers against natural calamities.
The Pradhan Mantri Fasal Bima Yojana (PMFBY) was launched on 13 January 2016. It is a crop insurance scheme that provides comprehensive insurance coverage against failure of notified crops due to non-preventable natural risks, thereby stabilising the income of farmers and encouraging them to adopt modern agricultural practices.
Scheme at a Glance
| Launched | 13 January 2016 |
| Lead Ministry | Ministry of Agriculture & Farmers Welfare |
| Farmer Premium (Kharif) | 2% of sum insured |
| Farmer Premium (Rabi) | 1.5% of sum insured |
| Commercial/Horticultural | 5% of sum insured |
Key Features
- Low and uniform premium across the country, with the balance subsidised by the government.
- Covers losses from sowing to post-harvest stages due to notified natural calamities.
- Use of technology such as smartphones, drones and satellites for quick yield estimation and claim settlement.
- Made voluntary for all farmers from the Kharif 2020 season.
- PMFBY replaced earlier schemes such as the National Agricultural Insurance Scheme (NAIS) and Modified NAIS.
- There is no upper limit on government subsidy for the balance premium.
- It is one of the largest crop insurance schemes in the world by number of farmers enrolled.
Practice MCQs
Q1. In which year was the PM Fasal Bima Yojana launched?
a) 2014 b) 2015 c) 2016 d) 2017
Answer: c) 2016
Q2. PMFBY is which type of scheme?
a) Pension scheme b) Crop insurance scheme c) Housing scheme d) Skill scheme
Answer: b) Crop insurance scheme
Q3. What is the farmer's premium for Kharif crops under PMFBY?
a) 1.5% b) 2% c) 5% d) 10%
Answer: b) 2% of sum insured
Q4. The farmer's premium for Rabi crops under PMFBY is:
a) 1% b) 1.5% c) 2% d) 5%
Answer: b) 1.5% of sum insured
Q5. Which ministry implements PMFBY?
a) Ministry of Finance b) Ministry of Agriculture & Farmers Welfare c) Ministry of Rural Development d) Ministry of Commerce
Answer: b) Ministry of Agriculture & Farmers Welfare