https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3APradhan_Mantri_Fasal_Bima_Yojana_%28PMFBY%29Definition:Pradhan Mantri Fasal Bima Yojana (PMFBY) - Revision history2026-07-31T05:03:59ZRevision history for this page on the wikiMediaWiki 1.43.9https://www.insurerbrain.com/w/index.php?title=Definition:Pradhan_Mantri_Fasal_Bima_Yojana_(PMFBY)&diff=16762&oldid=prevPlumBot: Bot: Creating new article from JSON2026-03-15T07:35:04Z<p>Bot: Creating new article from JSON</p>
<p><b>New page</b></p><div>🌾 '''Pradhan Mantri Fasal Bima Yojana (PMFBY)''' is the Indian government's flagship [[Definition:Crop insurance | crop insurance]] scheme, launched in 2016 to provide comprehensive coverage to farmers against yield losses caused by natural calamities, pests, and diseases. As one of the largest [[Definition:Agricultural insurance | agricultural insurance]] programs in the world by farmer enrollment, PMFBY replaced earlier schemes — the National Agricultural Insurance Scheme (NAIS) and the Modified National Agricultural Insurance Scheme (MNAIS) — with the aim of simplifying the product, reducing farmer [[Definition:Premium | premium]] burdens through heavy government subsidy, and accelerating [[Definition:Claims management | claims settlement]]. The scheme is administered by the Indian Ministry of Agriculture and Farmers' Welfare, with implementation carried out by empaneled [[Definition:Insurance carrier | insurance companies]], both public sector (such as Agriculture Insurance Company of India) and private sector insurers.<br />
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⚙️ Under PMFBY, farmers pay a nominal [[Definition:Premium | premium]] contribution — typically 2% of the sum insured for kharif (monsoon) crops, 1.5% for rabi (winter) crops, and 5% for commercial and horticultural crops — while the central and state governments share the remaining [[Definition:Actuarial science | actuarially]] determined premium cost equally. The scheme operates on an area-approach basis: yields are assessed at designated insurance unit levels (typically a cluster of villages) using crop cutting experiments, and if the actual yield for that unit falls below the threshold yield, all insured farmers in that unit receive a proportional [[Definition:Indemnity | indemnity]] payout. PMFBY also incorporates add-on features for prevented sowing, mid-season adversity, localized calamities (such as hailstorm and landslide affecting individual farms), and post-harvest losses. The Indian government has progressively encouraged the use of [[Definition:Remote sensing | remote sensing]], satellite imagery, drone technology, and smartphone-based crop assessments to reduce reliance on manual crop cutting experiments, improve accuracy, and speed up the [[Definition:Claims management | claims]] process. Since 2020, farmer enrollment has been made voluntary for all categories, including those with institutional crop loans, marking a shift from the earlier compulsory linkage.<br />
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🌍 PMFBY holds significance for the global insurance industry beyond India's borders because it demonstrates both the potential and the challenges of operating [[Definition:Agricultural insurance | agricultural insurance]] at massive governmental scale. The scheme has insured hundreds of millions of farmer applications since inception, making it a critical case study in [[Definition:Public-private partnership | public-private partnership]] for disaster risk financing. Insurers participating in PMFBY must manage substantial [[Definition:Basis risk | basis risk]] inherent in the area-yield approach, navigate complex relationships with state governments over premium subsidy disbursement and data sharing, and invest in [[Definition:Technology | technology]] infrastructure to meet the government's push toward digital yield estimation. For [[Definition:Reinsurance | reinsurers]] active in the Indian market, PMFBY-related business constitutes a significant source of [[Definition:Agricultural insurance | agricultural]] [[Definition:Premium | premium]] that must be carefully modeled against monsoon variability and regional drought patterns. The scheme's evolution — its design adjustments, technological adoption, and ongoing debates around fiscal sustainability — offers important lessons for governments and insurers across Asia, Africa, and Latin America pursuing similar large-scale crop insurance programs.<br />
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'''Related concepts:'''<br />
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* [[Definition:Crop insurance]]<br />
* [[Definition:Agricultural insurance]]<br />
* [[Definition:Parametric insurance]]<br />
* [[Definition:Public-private partnership]]<br />
* [[Definition:Basis risk]]<br />
* [[Definition:Index-based insurance]]<br />
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