Stages of the crop loss covered under crop insurance

Aayush Chowdhury
Aayush Chowdhury

Stages of the crop loss covered under crop insurance: The Crop loss is covered under the following cases as-per the terms and conditions of Pradhan Mantri Fasal Bima Yojana (PMFBY)-

  1. Yield Losses: The crop losses can be claimed under the following conditions-
  • Natural Fire and Lightning.

  • Storm, Hailstorm, Cyclone, Typhoon, Hurricane, Tornado, etc.

  • Flood, Inundation, and Landslide.

  • Drought, Dry spells.

  • Pests/ Diseases etc.

  1. Prevented Sowing: On the notified area, the majority of the insured farmers having the intent to sow/plant and incurred expenditure for the purpose, are prevented from sowing/planting the insured crops due to any kind of adverse weather conditions, shall be eligible for indemnity claim up to a maximum of 25% of the sum insured.
  2. Post-Harvested Losses: On the basis of individual farming, Crop Insurance Coverage can be claimed for a maximum period of 14 days from harvesting for those crops which are kept in the “Cut & Spread” condition o dry in the field after Harvesting against natural calamity like unseasonal rains and cyclone, etc.
  3. Localized Calamities: Loss/Damage resulting from the occurrence of identified localized risks i.e. Landslide, Hailstorm, and inundation affecting isolated farms in the notified area.

Exclusions: Losses and Risks are created from the following perils shall be excluded from the coverage of Crop Insurance-

War & Kindred perils, Nuclear risks, Riots, Malicious damage, theft, Act of God, Grazed and/or destroyed by domestic and/or wild animals, In case of Post- Harvested losses, the harvested crops bundled and heaped at a place before threshing, other preventable risks.

Eligible Crops: The crops which are eligible under this scheme are as follows-

All Food Crops (Cereals, Millets, and Pulses), Oilseeds, Annual Commercial/Horticulture Crops are Eligible for the Crop Insurance Scheme. In a broader sense, all the Kharif and Rabi crops that are harvested throughout the year are enlisted for the Crop Insurance Scheme.

Crop wise premium: The Actuarial Premium Rate (APR) would be charged under PMFBY by implementing agency (IA). The rate of Insurance Charges payable by the farmer will be as per the following table:

S. No



Maximum Insurance Charges payable by the farmer ( % of Sum Insured)



All Food grain & oilseeds crops (all Cereals, Millets, Pulses & oilseeds crops).

2.0% of Sum Insured or Actuarial rate, whichever is less.



All Food grain & oilseeds crops (all Cereals, Millets, Pulses & oilseeds crops).

1.5% of Sum Insured or Actuarial rate, whichever is less.


Kharif & Rabi

Annual Commercial/ Annual Horticulture Crops.

5.0% of Sum Insured or Actuarial rate, whichever is less.

The Agricultural Insurance Company (AIC) shall calculate the Loss cost (LC) i.e. Claims as % of Sum Insured (SI) observed in case of the notified crop(s) in a notified unit area of insurance during the preceding 10 similar crop seasons (Kharif / Rabi) (till an Independent agency/ Technical Support Unit takes over) based on the latest available yield data in the month of February for Kharif crops and August for Rabi crops as per the requirement of the States and shall provide to Ministry of Agriculture & Farmers Welfare of Concerned States before invitation for premium bidding. This calculation to be done by AIC on behalf of Ministry is for internal purposes to have information on the approximate cost to the Insurance Agency for covering the risks so as to evaluate the bids in proper perspectives in the future.

Like this article?

Hey! I am Aayush Chowdhury. Did you liked this article and have suggestions to improve this article? Mail me your suggestions and feedback.

Share your comments

Subscribe to our Newsletter. You choose the topics of your interest and we'll send you handpicked news and latest updates based on your choice.

Subscribe Newsletters