Financial Literacy
Crop Insurance Basics
How insurance protects your season against the things you can’t control.
Weather, pests and other natural risks are part of farming. Crop insurance helps you recover from losses so one bad season doesn’t undo years of work.
What crop insurance does
Crop insurance pays out when notified crops are damaged by covered, non-preventable natural risks: helping you recover and keep farming.
How premiums work (PMFBY)
Under the Pradhan Mantri Fasal Bima Yojana (PMFBY), farmers pay a small share of the premium: generally 2% for Kharif, 1.5% for Rabi and 5% for commercial/horticultural crops: and the government subsidises the rest.
When to enrol
Enrolment has seasonal cut-off dates. Apply through your bank, a CSC, the insurer or the national crop-insurance portal before the deadline for your crop and area.
Key takeaways
- Insurance covers non-preventable natural risks
- Farmer premium is low; government subsidises the rest
- Enrol before the seasonal cut-off
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