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Restructured Weather Based Crop Insurance Scheme

About the Scheme:

Most of the non-weather risks that crops face are controllable such as use of inappropriate seed material, pest attacks, diseases, weeds, etc and technology is a better risk management technique than insurance for these risks. Technology adoption could be induced in an economy if robust insurance arrangement for uncontrollable factors could be worked out.
On the other hand insurance for known systematic controllable risks is inherently economically unviable and leads to unsustainable resource allocation. Therefore the need is to provide protection for risks that are uncontrollable by human intervention.
Weather insurance has been designed scientifically on the basis of historical weather parameters such as Rainfall, Temperature, Wind Speed, Fog, Relative Humidity and Hailstorm. Weather insurance covers the weather related risks faced by crop or by any other economic activity and promises faster claims redressal due to the availability of objective data. In addition to faster and simpler claim procedures, wherein minimum documentation is required.
Based on the weather station data and the deviation in the weather parameters, claim amount is calculated as per the predefined formula.

Coverage, Premium Rate and Enrolment:

Please refer to Pradhan Mantri Fasal Bima Yoajana (PMFBY) section

Claim Procedure:

The insured shall tender to the company all reasonable information, assistance and proofs in connection with any claim. In some cases where the insured shall not required to deliver to the company in event when there is a deviation in weather parameter and as the data for the claim is provided by authorized weather station who is a independent third party, the insurer shall calculate the loss as per the payment formula stated in the policy schedule on the basis of parameter data and shall not require the claim form and payment shall be made to the insured.

*For detailed coverage, exclusions and operational modalities, pl​ease read Operational Guidelines of Pradhan Mantri FasalBima Yojana (​ issued by Government of India.