What is Pradhan Mantri Fasal Bima Yojana ?

Objective of Pradhan Mantri Fasal Bima Yojana is 

• To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests & diseases.
• To stabilise the income of farmers to ensure their continuance in farming.
• To encourage farmers to adopt innovative and modern agricultural practices.
• To ensure flow of credit to the agriculture sector.

Pradhan Mantri Fasal Bima Yojana (PMFBY) aims at supporting sustainable production in the agriculture sector by way of

• providing financial support to farmers suffering crop loss/damage arising out of unforeseen events
• stabilizing the income of farmers to ensure their continuance in farming
• encouraging farmers to adopt innovative and modern agricultural practices
• ensuring flow of credit to the agriculture sector; which will contribute to food security, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting farmers from production risks.

Key features of the scheme are the following.

• Providing financial support to farmers suffering crop loss/damage due to unforeseen events
• Stabilizing the income of farmers
• Encouraging farmers to adopt innovative and modern agricultural practices
• Ensuring flow of credit to the agriculture sector
• Three level of indemnity 70, 80 and 90
• Sum Insured equivalent to scale of finance
• Scheme envisages many new things such as utilizing innovative technologies like satellite imagery, vegetation indices etc. coupled with the mandatory usage of smart phones / hand held devices for increasing the speed and accuracy during yield estimation.
• Digitization of CCEs including geo-tagging, date-time stamping and photographs
• Single series data for production estimates and insurance
• Access to Insurance Company for co-observance of CCEs
• Written information to IC about CCE schedule by State Govt.
• Usage of RST, Drone and Mobile technology to aid CCEs and yield assessment