Weather Based Crop Insurance: RWBCIS Details and Claims

Agricultural production in India is highly dependent on weather patterns. Extreme heatwaves, dry spells, excessive rainfall, and high winds can destroy crops in a matter of days, leading to massive financial losses for farmers. To protect farmers from these weather risks, the government introduced the Restructured Weather Based Crop Insurance Scheme (RWBCIS). Unlike traditional crop insurance that relies on yield cutting, this scheme uses weather parameters to calculate losses, which ensures faster claim settlements and reduces disputes.

Traditional crop insurance models often suffer from delays because yield estimation requires thousands of physical crop cutting experiments across the country. In contrast, weather-based insurance relies on scientific weather data recorded by automated weather stations. When rainfall drops below a certain level or temperature crosses a specific limit, the insurance payouts are triggered. This index-based model provides a transparent way of helping farmers recover from crop failures caused by adverse weather.

What is the RWBCIS Scheme

The Restructured Weather Based Crop Insurance Scheme (RWBCIS) is a government-sponsored crop insurance program. It aims to mitigate the financial hardship faced by farmers due to adverse weather conditions. The scheme covers various weather perils such as rainfall deficit, excess rainfall, temperature fluctuations (heatwaves or frost), high wind speeds, and relative humidity levels. It operates on an index-based model, where payouts are triggered when specific weather parameters deviate from defined thresholds during the crop season.

The scheme covers food crops, including cereals, millets, pulses, and oilseeds, as well as commercial and horticultural crops. It is implemented by public and private sector insurance companies under the supervision of the Ministry of Agriculture and Farmers Welfare. State governments notify the crops and areas covered under the scheme in their respective states before the start of the Kharif and Rabi seasons, based on local weather vulnerability.

RWBCIS vs PMFBY Comparison

The primary difference between the Pradhan Mantri Fasal Bima Yojana (PMFBY) and RWBCIS lies in the assessment method. PMFBY estimates crop losses based on yield data collected through physical Crop Cutting Experiments (CCEs) at the village panchayat level. This can be time-consuming and prone to human error. In contrast, RWBCIS relies entirely on weather data recorded by Automatic Weather Stations (AWS). Payouts are made based on weather index deviations, meaning no crop-cutting experiments are required. This results in much faster claim settlements.

Another difference is the level of geographical coverage. While PMFBY operates at the village or panchayat level, RWBCIS operates at the block, circle, or hobli level, where the Reference Weather Station is located. While PMFBY covers all types of risks including pests and diseases, RWBCIS focuses strictly on weather-induced risks. This makes RWBCIS highly objective and reduces disputes over yield estimation, as the weather data is recorded by automated instruments and is open to public verification.

However, weather-based insurance has a limitation known as basis risk. This occurs when a farmer's field suffers localized damage (such as a local hailstorm), but the nearest automatic weather station does not record any deviation because the storm bypassed it. In such cases, the farmer may not receive a payout despite suffering real losses. The government is working to reduce this basis risk by setting up more weather stations and rain gauges at the village level, ensuring better coverage.

Premium Rates for Farmers

The premium rates under RWBCIS are kept affordable for farmers, similar to PMFBY. Farmers pay a maximum premium of two percent of the sum insured for Kharif food and oilseed crops. For Rabi food and oilseed crops, the premium rate is one point five percent. For commercial and horticultural crops, the farmer premium is capped at five percent of the sum insured. The difference between the actuarial premium charged by insurance companies and the rate paid by farmers is shared equally as a subsidy by the Central and State Governments.

The premium subsidy sharing between the Centre and States is usually fifty-fifty, but for northeastern states, the Centre contributes ninety percent of the subsidy. The sum insured is determined based on the scale of finance approved by the District Level Technical Committee for the specific crop. This ensures that the insurance coverage is sufficient to cover the actual cost of cultivation, helping the farmer restart agricultural activities in the next season.

It is important to note that the government has set a cap on the premium subsidy for areas where the actuarial premium is very high. If the actuarial premium exceeds a certain percentage, the subsidy may be capped, and the sum insured may be reduced proportionally. Farmers should check the premium rates and sum insured details for their block before enrolling, as these details are published in the state government's seasonal crop insurance notification.

Role of Automatic Weather Stations

The success of RWBCIS depends on a dense network of weather monitoring infrastructure. The government sets up Reference Weather Stations (RWS), which are typically Automatic Weather Stations (AWS) or Automatic Rain Gauges (ARG) situated at the block or circle level. These stations record real-time weather data daily. In case a primary weather station fails or shows faulty readings, backup weather stations are designated beforehand to provide the necessary data.

The automatic weather stations measure multiple parameters, including rainfall volume, rainfall intensity, air temperature, relative humidity, wind speed, and solar radiation. The data is recorded hourly and transmitted digitally to a central server. This automated transmission prevents manual tampering and ensures that the data used for claim calculations is accurate and unbiased. The data is also shared with agricultural universities to help improve crop weather research.

The government has established strict quality control guidelines for these weather stations. They must be calibrated regularly, and the surrounding area must be kept clear of trees or buildings that could block wind or rain. The locations of these stations are shared with insurance companies and farmers so that everyone knows which station is being used as the reference point for their fields. This transparency is a key benefit of the index-based insurance model.

Claim Trigger Parameters Explained

The insurance company, in consultation with agricultural departments, defines a term sheet for each crop and block. This term sheet outlines the trigger parameters and the exit parameters. The trigger parameter represents the limit beyond which crop damage begins, and this is when the payout starts. The exit parameter represents the point at which maximum damage is assumed, triggering the full sum insured payout. For example, if a block receives less than fifty millimeters of rain during a critical thirty-day dry spell trigger, the claim process starts.

The term sheet specifies the crop growth stages and the corresponding weather risks. For instance, during the flowering stage of mangoes, high relative humidity and low temperature can cause pest attacks and flower drop. The term sheet will define the exact humidity and temperature thresholds for that period. If the weather station records data crossing these thresholds, the insurance company calculates the payout rate per day of deviation, as specified in the term sheet.

The payouts are calculated on a progressive scale. If the weather deviation is mild, the payout is small. As the deviation becomes more severe and approaches the exit limit, the payout increases. Once the exit limit is reached, the farmer receives the maximum payout. This structured payout system ensures that farmers are compensated fairly based on the severity of the weather anomaly, without the need for individual field visits or loss assessments.

Specific trigger values are determined for different crops depending on their physiological requirements. For example, potato crops are highly sensitive to frost during winter months. Therefore, the term sheet for potatoes will have a specific low-temperature trigger, such as temperature dropping below four degrees Celsius for three consecutive nights. Similarly, plantation crops like bananas are vulnerable to high wind speeds, and the trigger will be based on wind velocity exceeding a certain number of kilometers per hour.

The design of index-based insurance also includes the selection of weightage factors for different weeks of the crop cycle. For instance, a water deficit during the vegetative phase of maize might have a lower weightage compared to a dry spell during the grain filling phase. These weightages are calculated using historical crop-weather models developed by agricultural research bodies. This detail ensures that the payout is closely correlated with the actual physiological damage suffered by the crop, protecting the farmer's investment during critical growth windows.

West Bengal and Bangla Shasya Bima

Farmers in West Bengal should note that the state government does not implement PMFBY or RWBCIS. Instead, West Bengal runs its own state-sponsored crop insurance scheme called Bangla Shasya Bima (BSB). This scheme is completely premium-free for food and oilseed crops, and the state government pays the entire premium on behalf of the farmers. For commercial crops, a small premium is payable by the farmers. Readers from other states can use the national PMFBY portal, while West Bengal farmers must check their state land and agriculture portals for BSB enrollment.

The Bangla Shasya Bima scheme is implemented in collaboration with selected insurance companies. It covers various crops during both the Kharif and Rabi seasons. Payouts are made directly to the farmers' bank accounts based on yield loss or weather data, depending on the crop and district notifications. West Bengal farmers do not need to pay any premium for crops like paddy, maize, mustard, and pulses, making it a highly supportive initiative for smallholders.

To enroll in BSB, West Bengal farmers must submit their applications at the local Krishi Projukti Sahayak (KPS) office or during the Duare Sarkar camps. The documents required are similar to the national scheme, including land records, bank details, and sowing certificates. Since the premium is free, it is highly recommended that all cultivators in West Bengal enroll in this state scheme to protect themselves from climate risks.

How to Enroll and Claim

Loanee farmers who take crop loans through Kisan Credit Cards (KCC) from banks are enrolled automatically in the crop insurance scheme, unless they submit a written opt-out form before the deadline. Non-loanee farmers can enroll voluntarily through local bank branches, Common Service Centres (CSCs), or directly through the PMFBY online portal. The documents required for enrollment include land ownership records (RoR), copy of the KCC or bank passbook, sowing certificate signed by the local agricultural officer, and Aadhaar card.

The enrollment window closes a few weeks after the start of the sowing season, and these deadlines are strictly enforced. Once the enrollment is complete, the premium is deducted from the loanee farmer's bank account or paid directly by the non-loanee farmer. The insurance company then issues an insurance policy number. In case of adverse weather events, the insurance company collects the weather data from the Reference Weather Station at the end of the crop season or growth stage.

The claim calculation is done automatically by the insurance company based on the weather data and term sheets. The calculated claim amount is transferred directly to the farmer's bank account linked with their Aadhaar card. The farmer does not need to submit a claim form or visit the bank to request the payout. This automated payout system reduces the time taken to receive claims, helping farmers pay off their seasonal debts and prepare for the next crop.

Indicative Guidelines and Verification

All premium rates, weather triggers, term sheets, and crop lists are indicative and vary widely based on your state, district, and block. The exact parameters are updated before the start of the Kharif and Rabi seasons. Farmers must verify the latest notification and term sheets on the official PMFBY portal or consult their local agriculture extension officer. Do not rely solely on general figures when planning your insurance coverage. Always cross-check the details with your bank.

In addition, crop insurance is subject to policy terms and conditions, and the list of notified crops can change from year to year. Make sure that your land records are updated and that the correct crop is mentioned in the bank records. If you change your sowing plan after taking the loan, you must inform the bank immediately to update the insurance records, otherwise your claim may be rejected because of a crop mismatch.

अक्सर पूछे जाने वाले सवाल

What is the full form of RWBCIS?

RWBCIS stands for Restructured Weather Based Crop Insurance Scheme, an index-based weather crop insurance program.

How does RWBCIS differ from PMFBY?

PMFBY calculates claims based on crop yield estimation from crop cutting experiments, while RWBCIS calculates claims based on weather parameter deviations from weather stations.

What weather parameters are covered under RWBCIS?

The scheme covers rainfall deficit, excess rainfall, temperature fluctuations, high wind speed, frost, and relative humidity.

What is the farmer premium rate for Kharif crops?

Farmers pay a premium of 2 percent of the sum insured for Kharif food and oilseed crops.

What is the farmer premium rate for Rabi crops?

Farmers pay a premium of 1.5 percent of the sum insured for Rabi food and oilseed crops.

How much premium do farmers pay for commercial and horticultural crops?

For commercial and horticultural crops, the premium rate paid by the farmer is capped at 5 percent of the sum insured.

What is a Reference Weather Station (RWS)?

An RWS is a designated automatic weather station that records the official weather data used to calculate claims for a specific block or area.

How are claims processed under RWBCIS?

Claims are calculated automatically using weather data from the designated weather station, without requiring physical crop damage inspection.

What is a trigger parameter in weather insurance?

A trigger parameter is the specific weather threshold (e.g., minimum rainfall or maximum temperature) at which the insurance payout begins.

What is the exit parameter in the term sheet?

The exit parameter is the threshold of adverse weather at which the maximum possible insurance payout is triggered for the farmer.

Is enrollment automatic for farmers with crop loans?

Yes, loanee farmers with active KCC loans are enrolled automatically, but they can opt out by submitting a written request before the deadline.

Can non-loanee farmers apply for RWBCIS?

Yes, non-loanee farmers can enroll voluntarily through banks, Common Service Centres (CSCs), or the official PMFBY portal.

Which documents are required for non-loanee enrollment?

Required documents include Aadhaar, bank passbook, land records (RoR), and a sowing certificate from the local agricultural authority.

Does West Bengal implement RWBCIS?

No, West Bengal does not run RWBCIS; it runs its own premium-free scheme called Bangla Shasya Bima (BSB) for food and oilseed crops.

Where can I view the weather term sheets for my block?

You can download and view the term sheets for your specific crop and area on the official national crop insurance portal (PMFBY portal).