Top 10 Benefits of Fasal Bima Yojana for Farmers in India
Fasal Bima Yojana (PMFBY) offers financial protection against crop loss, covers risks across the crop cycle, provides affordable premiums, and supports timely claim settlement for small farmers.
More than 50% of India’s population is engaged in agriculture and allied activities, generating a little less than 20% of the country’s GDP. This makes it critical to provide adequate financial protection to our farmers, especially, the small and marginal landholders who make up the bulk of our agricultural community.
The Pradhan Mantri Fasal Bima Yojana (PMFBY) was introduced to address this challenge as farmers faced increasingly unpredictable weather, pest attacks, and fluctuating market conditions, often placing their income at risk. Over the years, it has become one of the most impactful government schemes for agricultural security. In this blog, we explore the top 10 fasal bima yojana benefits, especially for small farmers who rely heavily on stable crop income.
Want to know eligibility, covered crops and official scheme details? Visit Pradhan Mantri Fasal Bima Yojana (PMFBY) for coverage and registration guidance.
1. Financial Protection Against Crop Losses
One of the most significant fasal bima yojana benefits is the financial safety net it provides when crops fail due to natural calamities. Whether it’s drought, flood, cyclone, or unseasonal rainfall, farmers receive claims for insuring their crops which help them recover and prepare for the next season. This form of crop insurance coverage ensures that a single bad season does not push them into a cycle of debt.
2. Coverage Across All Stages of Crop Cycle
PMFBY is designed to support farmers throughout the entire crop cycle. From pre sowing to postharvest, the scheme covers risks at every stage. This holistic approach is one of the key PMFBY advantages, ensuring farmers are protected even before the seeds are sown or after the crops are harvested. Such comprehensive crop insurance coverage is rarely found in traditional insurance schemes.
3. Affordable Premium Rates
Affordability is central to the scheme’s success. Small farmers often avoid insurance due to high premiums, but PMFBY offers extremely low rates – 2% for Kharif crops, 1.5% for Rabi crops, and 5% for commercial crops. This affordability is one of the most appreciated fasal bima yojana benefits, making risk protection accessible to farmers at an unprecedented scale.
You can also check premium rates for Kharif and Rabi crops and how the scheme works season-wise.
You can also check premium rates for Kharif and Rabi crops and how the scheme works season-wise.
4. Easy Enrolment Through Digital Platforms
Technology has made PMFBY more accessible than ever. Farmers can enrol through online portals, mobile apps, or Common Service Centres. This digital convenience is among the modern PMFBY advantages, reducing paperwork and ensuring transparency. It also helps farmers track their claims and receive updates without relying on middlemen.
If you’re comparing options, explore crop insurance plans on Kshema to find the best cover based on your crop and risks.
5. Timely Claim Settlement
The claim settlement process is simple and designed to work in tandem, with the claim amount directly based on the stage of the crop. A farmer has to intimate the insurance company about the damage within 72 hours of the incident. Loss assessment is mandated to be completed within 15 days after the damage. The on-account payment would be disbursed by the insurer without waiting for the receipt of final share of Government subsidy as per scheme guidelines. This reduces delays and ensures timely compensation as part of the fasal bima yojana benefits, giving farmers confidence that their losses will be addressed without long waiting periods.
In case of loss, farmers can file a crop insurance claim online through Kshema to start the claim process quickly.
6. Protection Against Localised Calamities
Small farmers are often the worst affected by localised disasters such as hailstorms, landslides, or pest attacks. PMFBY covers these events as well, making it a highly inclusive scheme. This is another reason why crop insurance coverage under PMFBY is considered one of the most farmerfriendly in the world.
New to insurance? Here’s a simple guide on how crop insurance works and how payouts are processed after damage
7. Encourages Adoption of Modern Farming Practices
When farmers know their crops are insured, they are more willing to invest in highquality seeds, fertilisers, and modern farming techniques or sustainable farming. This confidence boost is one of the indirect yet powerful fasal bima yojana benefits. It promotes innovation and productivity, helping farmers increase their income over time and making it an attractive proposition.
8. Reduces Dependence on Informal Credit
Crop failure often forces farmers to borrow money at high interest rates from moneylenders which often pushes them into a debt trap. PMFBY reduces this dependency by offering financial support during tough times. This is one of the most socially impactful PMFBY advantages, helping farmers avoid the cycle of debt and maintain financial stability
9. Supports Long Term Agricultural Sustainability
By reducing financial risks, PMFBY encourages farmers to continue farming even if they have had to endure crop loss for one season because their incomes are protected by insurance. This longterm stability is essential for India’s food security. Among all fasal bima yojana benefits, this one has the widest national impact, ensuring that small farmers remain active contributors to the agricultural economy.
10. Boosts Farmer Confidence and Mental WellBeing
Agriculture is stressful, especially when livelihoods depend on factors beyond human control. PMFBY provides emotional reassurance by guaranteeing support during crises. This psychological relief is one of the most underrated fasal bima yojana benefits, but it plays a crucial role in improving farmers’ quality of life.
Conclusion
The Pradhan Mantri Fasal Bima Yojana has transformed the way small farmers manage agricultural risks. With its wideranging fasal bima yojana benefits, from affordable premiums to comprehensive crop insurance coverage, the scheme has become a cornerstone of rural financial security. The various pmfby advantages—digital enrolment, timely claim settlement, and protection against localised calamities—make it a powerful tool for empowering India’s farming community.
If you want a broader view beyond PMFBY, read Top 10 benefits of crop insurance for farmers to compare protection advantages.
As climate change continues to challenge traditional farming, schemes like PMFBY offer hope, stability, and resilience. For small farmers striving to build a secure future, the Fasal Bima Yojana is not just an insurance scheme—it is a lifeline.
Official source:
For the latest PMFBY rules, enrolment updates and scheme documents, visit the PMFBY Official Portal.
Frequently Asked Questions
Q1.What is Fasal Bima Yojana (PMFBY)?
Fasal Bima Yojana (PMFBY) is a government crop insurance scheme that protects farmers from financial losses due to crop damage caused by natural and localised risks.
Q2. What are the main benefits of Fasal Bima Yojana for small farmers?
The key benefits include affordable premiums, coverage across the crop cycle, protection from natural disasters, and timely claim settlement.
Q3. What risks are covered under PMFBY crop insurance?
PMFBY covers crop loss due to events like drought, flood, cyclone, unseasonal rain, and localised calamities such as hailstorms and landslides.
Q4.How much premium do farmers pay in PMFBY?
Premiums are subsidised and kept low—typically 2% for Kharif, 1.5% for Rabi, and 5% for commercial/horticultural crops (as per scheme rules).
Q5. How can farmers enrol in Fasal Bima Yojana online?
Farmers can enrol through online portals, mobile apps, banks, or Common Service Centres (CSCs), making the process faster and more transparent.
Q6. Is PMFBY useful even for small landholders?
Yes, because premiums are low and the scheme is designed for marginal farmers.
Disclaimer:
“We do not assume any liability for any actions undertaken based on the information provided here. The information gathered from various sources and are displayed here for general guidance and does not constitute any professional advice or warranty of any kind.”
