Crop Insurance Premium & What Will It Cost You?

Your sum insured = area (in hectares) × the sum insured per hectare (usually the scale of finance for that crop). The farmer pays a capped percentage of that — 2% for Kharif food/oilseed crops, 1.5% for Rabi, and 5% for commercial/horticultural crops. The government pays the rest of the insurer's actuarial premium as subsidy.

The sum insured is the maximum amount you can be paid if the crop fails — set per hectare, typically equal to the scale of finance (the notified loan amount) for that crop in your district. Multiply it by your insured area to get your total sum insured, which the calculator does for you.

Under India's Pradhan Mantri Fasal Bima Yojana the farmer's share is capped: 2% of sum insured for Kharif (monsoon) food and oilseed crops, 1.5% for Rabi (winter) food and oilseed crops, and 5% for annual commercial and horticultural crops. This tool applies the rate for the season you choose.

The actuarial (gross) premium is the real risk-based rate the insurer charges, which varies by crop and district. You pay only the capped farmer share; the difference between the actuarial premium and your share is paid by central and state governments as subsidy. The calculator shows both and the subsidy percentage.

Payout is broadly the sum insured scaled by the yield shortfall against the guaranteed yield. The tool's claim estimate multiplies your sum insured by a shortfall percentage you enter, so you can see the protection your small premium buys. Actual settlement follows the scheme's yield-based formula and assessment.

Usually yes — for a 1.5–2% premium you protect the full value of the crop against drought, flood, pest and other notified perils. The calculator's net-benefit figure (payout minus premium) shows the leverage: a small, certain cost against a large, uncertain loss. It is especially valuable for loanee farmers.

No — enter the area in acres, hectares, guntha, bigha or m² and the tool converts to hectares before applying the per-hectare sum insured. The premium and subsidy are then computed on the correct total sum insured regardless of the unit you use.

Enrol before the season's cut-off date through your bank (it's automatic for loanee farmers on crop loans), a Common Service Centre, the insurer, or the national crop insurance portal. Keep your land records, sowing certificate and bank details ready, and report any crop loss within 72 hours.

PMFBY covers yield losses from non-preventable risks — drought, dry spells, flood, inundation, pests and diseases, landslides, natural fire and lightning, storm, hailstorm and cyclone — plus prevented sowing and certain post-harvest losses. Localised hail, landslide, inundation and post-harvest losses are assessed individually.

The farmer premium caps (2% / 1.5% / 5%) follow India's PMFBY scheme. The sum insured per hectare and the actuarial rate vary by district, crop and year and are notified by the state — confirm them with your bank or insurer. Use this tool for planning and comparison.