Crop insurance in India helps secure farmers against any major losses that occur during the process of production. Agriculture forms the main source of income for a large section of the Indian population. It is thus necessary that people who depend on farming for their livelihood are adequately protected when things go awry. Afterall, their hard work feeds the rest of the nation.
The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a government-launched scheme that covers farmers against any losses they face due to unforeseen occurrences during cultivation and harvesting. This insurance scheme was created to promote sustainability in the Indian agriculture industry. Crop insurance holds many benefits for the farmer…let’s take a look at an overview of the coverage offered.
Coverage under PMFBY
Under this crop insurance scheme, farmers can stay protected against:
- Yield losses (standing crop)
This is the main comprehensive insurance that covers the standing crop from the stage of sowing till harvesting against pests, drought, flooding, landslides, natural incidents of fire, tempest, storm, and other perils of a similarly catastrophic nature as mentioned in the policy.
- Risk of prevented sowing
A claim for 25% of the sum insured will be paid if adverse weather conditions prevent a majority of farmers in the area from sowing/planting in the insurance unit.
- Post-harvest loss
Farmers can claim coverage for up to 2 weeks for ‘cut and spread’ crops that face damage from certain calamities mentioned in the policy such as cyclone, cyclonic rains, unseasonal rains, and hailstorm, among others. Farms will be assessed individually for claims.
- Damage from localized calamities
This benefit is applicable to farms that face losses due to localized incidents of inundation, hailstorm, cloud burst, and fire caused by lightning, among others.
Note – The crops covered under this insurance scheme include food crops (pulses, millets, and cereals), annual horticultural crops, annual commercial crops, and oilseeds.
As we can see, having crop insurance offers so many benefits to the farmer. With the help of this coverage, a farmer’s income can be kept stabilized against the many unexpected calamities that often occur without warning. Those actively employed in the agricultural industry can thus work with true peace of mind, enjoying much-needed protection from major production risks.
It is important to note that just like with any other insurance product, crop insurance too has certain exclusions. Damages caused due to war, nuclear risks, and malicious actions will not receive any coverage. It is advisable to speak with the insurance provider for a detailed list of the exclusions in a crop insurance policy.
Crop insurance can be easily purchased online with payment for the premium made by NEFT. Leading insurance companies offering the scheme generally have a dedicated toll-free number to easily report incidents, get guidance, and initiate claims. Do bear in mind that there is usually a time-frame within which calamities need to be reported.
We hope that this article has helped improve your understanding of crop insurance.