Coverage of Farmers Under Pradhan Mantri Fasal Bima Yojana

Coverage of Farmers Under Pradhan Mantri Fasal Bima Yojana

All farmers including sharecroppers and tenant farmers growing the notified crops in the notified areas are eligible for coverage. However, farmers should have insurable interest for the notified/insured crops. The non-loanee farmers are required to submit necessary documentary evidence of land records prevailing in the State (Records of Right (RoR), Land possession Certificate (LPC) etc.) and/or applicable contract/ agreement details/ other documents notified/ permitted by concerned State Govt. in case of sharecroppers/tenant farmers and the same should be defined by the respective States in the notification itself.

Compulsory Component
All farmers who have been sanctioned Seasonal Agricultural Operations (SAO) loans from Financial Institutions (FIs) (i.e. loanee farmers) for the notified crop(s) season would be covered compulsorily.
This provision shall override any decision taken by FIs including PACS exempting farmers from compulsory coverage of loanee farmers.

However non-standard KCC /crop loans as defined and as per prevailing practices of the concerned Banks/Govt. regulator shall not be covered compulsorily. However bank branches may facilitate such farmers for enrolment as non-loanee farmers . Merely, sanctioning of crop loan against other collateral securities including fixed deposits, gold/jewel loans, mortgage loans etc. without having insurable interest of the farmer on the insurable land and notified crops shall not be covered under the Scheme.
3.1.2 Voluntary Component
• The Scheme is optional for non-loanee farmers.
• The insurance coverage will strictly be equivalent to sum insured/hectare, as defined in the Govt. notification or /and on National Crop Insurance Portal multiplied by sown area for notified crop. 

Special efforts shall be made to ensure maximum coverage of SC/ ST/ Women farmers under the Scheme. Further Panchayat Raj Institutions (PRIs) may be involved in extension and awareness creation amongst farmers and obtaining feed-back of farmers about the implementation of the Scheme

The implementing Insurance Company selected as L1 will be responsible for taking necessary measures to ensure at least 10% incremental increase in coverage of non-loanee farmers. However other empanelled Insurance Companies which have participated in the bidding and are keen for enrolment of non loanee farmers in the cluster may also be allowed to enrol non-loanee farmers at L1
premium rate. The interested companies have to inform their willingness in writing within seven days
of finalisation of tender/issuance of work order to L1. It will however be the responsibility of all the Insurance Companies engaged in this process to ensure that duplicate enrolment does not happen in the given cluster/district. Engaging companies other than L1 for enrolling non loanee farmers will be taken up on a pilot basis in Districts notified by State Govt. They shall enrol non loanee farmers as per conditions laid down in Para 17.5.

These Insurance Company will maintain separate data of such non loanee farmers covered by them and enter the said data on the portal as per seasonality discipline detailed in Para 16.2. They shall be liable for payment of claims to such farmers.

The exchange of information, co-witnessing of CCEs and sharing of yield data etc for the cluster by Government/NCIP will be limited to L1 Company only and it will be binding on other companies to accept it. However, the requisition for payment of Government subsidy in respect of non-loanee enrolled by them will be submitted directly to the Govt designated agency.

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