Crop Insurance Premium & What Will It Cost You?
Covers drought
Enter your area, sum insured per hectare and season to get the premium you pay, your sum insured, the government subsidy and an illustrative claim payout.
Enter your field
Next: enrol before the season cut-off through your bank/CSC; keep the sowing certificate and report any crop loss within 72 hours.
Rates follow India's PMFBY scheme; the actuarial rate varies by district/crop — confirm with the insurer/bank.
Crop insurance premium — key facts
- Sum insured
- area (ha) × SI per ha
- Kharif premium
- 2% of sum insured
- Rabi premium
- 1.5% of sum insured
- Commercial/hort.
- 5% of sum insured
- Govt subsidy
- actuarial − farmer share
- Payout
- sum insured × yield shortfall
- Scheme
- PMFBY-style
- Privacy
- Runs in your browser; nothing uploaded
A small premium against a season's loss
One bad monsoon, flood or pest outbreak can wipe out a whole season's income. Crop insurance turns that uncertain, ruinous loss into a small, predictable cost — and under schemes like India's PMFBY the government subsidises most of the real premium, so the farmer pays only a capped 1.5–5% of the sum insured. The hard part is knowing what you'll actually pay and what you're covered for.
This tool spells it out: your sum insured, the premium you pay, the government subsidy, and an illustrative payout for a given yield shortfall — in your choice of 8 currencies. Use it to budget the premium, see the protection leverage, and decide your cover before the enrolment cut-off. Pair it with the Cost of Cultivation, Crop Profit and Farm Loan EMI tools to plan the whole season's finances.
Know your premium
The exact capped share you'll pay this season.
See the subsidy
How much of the real premium the government covers.
Weigh the payout
Net benefit of a claim against the premium paid.
Budget early
Plan the cost before the enrolment cut-off.
Frequently Asked Questions
How is the crop insurance premium calculated?+
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.
What is the sum insured?+
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.
What premium rate do I pay under PMFBY?+
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.
What is the actuarial premium and government subsidy?+
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.
How much can I claim if my crop fails?+
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.
Is crop insurance worth the premium?+
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.
Does my area unit matter?+
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.
When and how do I enrol?+
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.
What perils are covered?+
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.
Are these rates official?+
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.