PMFBY: The Crop Insurance Most Farmers Pay For But Never Claim

In June 2022, unseasonal hail destroyed 60% of a wheat crop in Bundelkhand. The farmer had been enrolled in PMFBY for four years — premiums deducted automatically from his KCC account each season. He received nothing, because he did not know he had to notify the insurance company within 72 hours of the loss.

This story repeats across India every season. PMFBY — Pradhan Mantri Fasal Bima Yojana — is one of the world's largest crop insurance programmes by coverage. In 2023-24, it enrolled more than 4 crore farmer applications. But the claim settlement rate tells a different story: lakhs of farmers who suffered losses received nothing, not because they weren't eligible, but because they didn't follow the claim procedure.

The insurance is only useful if you know how to use it.

What PMFBY Covers

Launched in 2016, PMFBY covers most kharif and rabi crops at one of the lowest farmer premium rates of any insurance scheme anywhere:

• Kharif crops (paddy, maize, soybean, cotton, etc.): Farmer pays maximum 2% of sum insured; the rest is borne by the state and central government.
• Rabi crops (wheat, barley, mustard, chickpea, etc.): Farmer pays maximum 1.5% of sum insured.
• Commercial and horticultural crops: Farmer pays maximum 5% of sum insured.

The sum insured is typically the "Scale of Finance" set by the district — an estimate of the cultivation cost per hectare. It varies by crop and district; your bank or Agriculture Department office has the figure for your area.

What Events Are Covered

PMFBY has four distinct coverage layers, and knowing which layer applies to your loss determines how you report it:

1. Prevented Sowing / Planting Failure
If you sow a crop but widespread drought or heavy rains prevent the seeds from sprouting — 25% of the sum insured is paid automatically, based on weather data. No individual notification needed.

2. Standing Crop Loss (Drought, Flood, Pest, Disease)
Damage to a standing crop from drought, dry spells, flood, waterlogging, pests, or disease during the growing season. Claims are settled based on Crop Cutting Experiments (CCEs) conducted by the Agriculture Department — a scientific yield estimation at the village level. If the village-level yield falls below the threshold yield (set by the government), all enrolled farmers in that revenue circle receive compensation proportionally.

Individual notification is NOT required for standing crop losses. The village is the unit; the Agriculture Department's CCE data triggers claims automatically for enrolled farmers in affected villages.

3. Post-Harvest Losses
If a crop has been harvested and is drying in the field (not yet stored), and is damaged within 14 days of harvest by unseasonal rain, cyclone, or hailstorm — this is covered. Individual notification is required within 72 hours.

4. Localised Calamities (Hailstorm, Landslide, Inundation)
These are the most common cause of missed claims. If a hailstorm, landslide, or cloud burst damages your field — even if the rest of the village is fine — this is a localised claim. You must notify the insurer within 72 hours of the event. Missing this window almost always means claim rejection.

Are You Already Enrolled? Check First

If you have a Kisan Credit Card (KCC), you are very likely already enrolled in PMFBY for crops you declared when taking the loan — premiums are deducted automatically from your account before disbursement. Many farmers do not realise this.

To check:

• Log into the PMFBY portal: pmfby.gov.in and use the "Check Your Policy" section with your application number or bank account number.


• Call 1800-200-7710 — the PMFBY toll-free helpline — and ask if your family is enrolled for the current season.


• Visit your bank branch and ask for a copy of your crop insurance policy and the premium deducted.

Non-loanee farmers — those who do not have a KCC or crop loan — must enrol voluntarily through the bank, an insurance company office, a CSC, or online. Enrolment closes on the cut-off date (typically 31 July for kharif, 31 December for rabi) — after which you cannot join for that season.

How to File a Claim: Step by Step

For Localised Calamity or Post-Harvest Loss (72-Hour Rule Applies)

The moment a hailstorm, flood, or localized event damages your crop:

Within 72 hours — do all three of these:

1. Call the crop insurance company. The insurer's name and number are on your policy document (ask your bank for a copy). Common companies: Agriculture Insurance Company of India (AIC), Bajaj Allianz, HDFC ERGO, ICICI Lombard (varies by state and district). Their helplines are listed on pmfby.gov.in district-wise.
2. Call 1800-200-7710 and register a loss notification. Note the complaint reference number.
3. Use the PMFBY Mobile App (available on Google Play and App Store — search "PMFBY"). Log in with your mobile number, select your enrolled crop, and report the loss with photographs and GPS location. The app generates a notification ID.

Do not wait. A photograph dated the next morning and a call 4 days later is enough for the company to reject the claim on a technicality. The 72-hour rule is strict.

After notification:

• An insurance company surveyor will visit your field, usually within 10 days.


• Cooperate with the survey; show the damage clearly.


• Keep all records — your policy document, the notification reference number, the surveyor's name and visit date.

For Standing Crop Losses (Drought, Widespread Flooding, Disease)

For area-based, widespread losses, the district Agriculture Department conducts Crop Cutting Experiments. You do not need to file individually — but you do need to:

• Be enrolled before the cut-off date for that season.


• Confirm your land records match your policy (survey number / khasra number). A mismatch here is another common rejection reason.

If CCEs show your revenue circle's yield fell below the threshold, claims are automatically released to all enrolled farmers in that circle.

Tracking Your Claim

Once registered, track your claim status at:

• pmfby.gov.in → "Check Application Status"


• The PMFBY Mobile App → "Claim Status"


• Call 1800-200-7710 with your notification/application ID

Claims are typically settled within 60 days of final yield data being available. Delays beyond that can be escalated.

If Your Claim Is Rejected

Rejection reasons that can be challenged:

• Premium was deducted but you are "not enrolled": This means a bank data entry error. File a written complaint to your bank branch manager with the premium deduction receipt. The bank is responsible for forwarding enrollment data to the insurance company.


• Land records mismatch: Your khasra number on the policy differs from your actual field. Get a corrected khatauninotified by your lekhpal and re-file.


• Notification was late: If you genuinely notified within 72 hours but the company's records show otherwise, file a written escalation with proof (call recording if available, WhatsApp message to the company).

Escalate rejected claims to:

• Your District Collector or Sub-Divisional Magistrate — both have powers to intervene in PMFBY disputes.


• The District Level Monitoring Committee (DLMC) for PMFBY in your district.


• The Grievance Portal at pgportal.gov.in (centralized public grievance system).

The Non-Loanee Farmer: You Must Act Yourself

If you do not have a KCC, insurance companies and banks have no automatic link to you. You must:

1. Visit your nearest bank, CSC, or insurance company office before the season cut-off date.


2. Carry: Aadhaar, bank passbook, land records (khasra/khatauni), and a recent passport photo.


3. Declare which crops you are sowing and on how many hectares. Pay the premium (2% for kharif, 1.5% for rabi of the sum insured — usually ₹400–800 per acre for common crops).


4. Collect your policy document before leaving. Do not leave without it.

What You Can Do

• Check today if you are enrolled — call 1800-200-7710 or check pmfby.gov.in with your bank account details.
• Get a copy of your policy document from your bank. You need the insurer name and helpline number — not the bank number — to file a claim.
• Save the insurance company helpline in your phone now, not after a hailstorm. It will be on your policy.
• Install the PMFBY app and test how loss reporting works before you ever need it.
• If you are a non-loanee farmer, enrol before 31 July for kharif. Do not wait for someone to remind you — nobody will.
• If a localised storm hits: photograph the damage immediately with your phone (photos have timestamp), then call within 72 hours.

Crop insurance only works if you use it. The premium is already paid. The claim process takes one phone call and three photographs. What it takes is knowing the 72-hour window exists — and now you do.

Sources

• Pradhan Mantri Fasal Bima Yojana — official portal
• PMFBY Operational Guidelines 2020, Department of Agriculture, Cooperation & Farmers' Welfare
• Agriculture Insurance Company of India — claim settlement procedures
• Ministry of Agriculture & Farmers' Welfare — PMFBY annual progress reports