Agriculture in India is associated with high risks of droughts and floods. It is necessary to protect farmers from natural calamities and ensure their credit eligibility. Thus, the Government of India implemented Pradhan Mantri Fasal Bima Yojana.

Launched on February 18, 2016, by Prime Minister Mr. Narendra Modi, this Prime Minister Crop Insurance Scheme is an insurance service for farmers and their yields. This sarkari yojana was formulated with the “One Nation–One Scheme” theme by replacing two previous schemes, namely the National Agricultural Insurance Scheme and Modified National Agricultural Insurance Scheme. 


  • Providing insurance coverage and financial support to farmers in case of failures of notified crops due to natural calamities, pests, and diseases
  • Stabilizing the income of farmers
  • Encouraging farmers to adopt innovative and modern agricultural practices
  • Ensuring the flow of credit to the agriculture sector


Farmers growing notified crops in notified areas during notified seasons with an insurable interest in crops are eligible. Compulsory coverage is applicable to farmers in notified areas who possess a crop loan/KCC account, whose credit limit is sanctioned/renewed for the crop during notified seasons, and those included by the government on a timely basis. Voluntary coverage is applicable to farmers who do not fall under the aforementioned inclusion criteria.

Notified crops

The scheme is applicable for two types of crops: Kharif and Rabi. It is implemented on an area-approach basis, including defined areas and notified areas. 


  • Only 2% and 1.5% uniform premium is to be paid by farmers for all Kharif and Rabi crops, respectively. For annual commercial and horticultural crops, a 5% premium is to be paid.
  • Technology usage, including smartphones and remote sensing approaches, is encouraged.
  • Exclusion of Service Tax liability.

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