Crop Insurance

Implementation of Pradhan Mantri Fasal Bima Yojana (PMFBY):

The Pradhan Mantri Fasal Bima Yojana has been recently communicated by the Department of Agriculture, Cooperation and Farmers’ Welfare, Ministry of Agriculture & Farmers Welfare, GoI. This scheme would replace the existing National Agriculture Insurance Scheme (NAIS)/ Modified National Agriculture Insurance Scheme (MNAIS) from the ensuing Kharif 2016 season.

All the 13 DCCBs in the state of Andhra Pradesh state are implementing the PMFBY and the information on scheme is briefly given below.

The main objectives of this scheme are

-To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crops as a result of natural calamities, pests & diseases.

-To stabilize the income of farmers to ensure their continuance in farming.

– To encourage farmers to adopt innovative and modern agricultural practices.

– To ensure flow of credit to the agriculture sector.

PMFBY has addressed all the shortcomings in the earlier schemes and would be available to the farmers at very low rates of premium. This scheme would provide insurance cover for all stages of the crop cycle including post- harvest risks in specified instances.  As the Scheme is compulsory for loanee farmers availing Seasonal Agricultural Operational (SAO) loans / Kisan Credit Card (KCC) holders for the notified crops in notified areas, 100% coverage of loanee farmers in notified areas growing notified crops has to be done by all concerned Branches/PACS. The Scheme is voluntary for non – loanee farmers, but there is a prerequisite in the scheme that they should have a Bank account to be eligible for coverage.

The further details regarding the Insurance charges are given below:







Maximum Insurance

Charges/premium payable by farmer

(% of Sum Insured)

1 Kharif Food & Oilseeds crops (all cereals, millets, & oilseeds, pulses) 2.0% of SI or Actuarial rate, whichever is less
2 Rabi Food & Oilseeds crops (all cereals, millets, & oilseeds, pulses) 1.5% of SI or Actuarial rate, whichever is less
3 Kharif & Rabi Annual Commercial / Annual

Horticultural crops

5% of SI or Actuarial rate,
whichever is less

The difference between premium rate and the rate of Insurance charges payable by farmers shall be treated as Rate of Normal Premium Subsidy, which shall be shared equally by the Centre and State Governments.


The General Insurance Companies formulated a Personal Accident Insurance Policy for Kisan Credit Card holders in consultation with RBI/NABARD.  The NABARD requested all the Banks to participate in the scheme.  As per the recommendations made by RBI/NABARD, our Board of Management in its meeting held on 27-3-2002 resolved to implement the Personal Accident Insurance Scheme to Cooperative Kisan Credit Card holders formulated by NABARD under the sharing pattern of premium at 1:2 ratio between the borrower and institutions.  The sharing pattern among the institutions i.e., PACS, DCCB & APCOB is at 2:2:1 ratio respectively.  The scheme will cover all the CKCC holders against death, permanent disability resulting from accidents with risk coverage upto Rs.1,00,000/- within a period of one year.

Accordingly, APCOB has released an amount of Rs.43.01 lakhs and Rs.16.57 lakhs during the years 2014-15 and 2015-16 respectively to DCCBs towards its share of premium under the scheme.