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RWBCIS Restructured Weather-Based Crop Insurance Scheme Photo: Saikat Hazra · Pexels License · source ↗

RWBCIS: Restructured Weather-Based Crop Insurance Scheme

The Restructured Weather-Based Crop Insurance Scheme (RWBCIS) is the index-based crop insurance scheme that operates in parallel with the yield-based Pradhan Mantri Fasal Bima Yojana (PMFBY) under the same central administrative framework. It was launched alongside PMFBY in 2016 as a replacement for the earlier Weather-Based Crop Insurance Scheme (WBCIS).

Principle — weather index, not yield

RWBCIS pays claims on the basis of deviation of measured weather parameters from a notified "trigger" reference at a Reference Weather Station — independent of whether the farmer's specific crop actually suffered loss. Parameters covered include:

  • Rainfall: deficit rainfall, excess rainfall, dry spell, wet spell, fortnightly rainfall windows
  • Temperature: low temperature, high temperature, day-degree windows
  • Relative humidity: high RH (relevant for fungal disease)
  • Wind speed: cyclonic wind, peak gust
  • Unseasonal rainfall at the harvest stage

The Term Sheet for each crop and notified area defines triggers, exits, payout slope and maximum payout — all transparent and pre-published.

Reference Weather Stations (RWS)

Each notified area is mapped to a Reference Weather Station — either an IMD station, a state agro-met station, or a private weather station operated by Skymet, Weather Risk, IMD-AWS networks or insurer-installed Automatic Weather Stations. Density of RWS coverage is one per cluster of villages — typically 1 RWS per 5-25 villages depending on the state and crop. RWS data is the sole basis for claim calculation.

Crops typically notified under RWBCIS

Weather-sensitive horticultural and plantation crops are the dominant RWBCIS-notified set:

  • Apple, kinnow, citrus, mango, banana
  • Grapes, pomegranate, papaya
  • Coconut, areca nut
  • Cardamom, pepper, ginger, turmeric
  • Coriander, cumin, fennel (rabi spices)
  • Onion, potato in some states
  • Cotton, soybean, sugarcane in select clusters

PMFBY remains the default for food and oilseed cereals where reliable yield measurement via CCE is feasible.

Premium structure

Farmer premium under RWBCIS is statutorily capped at the same rates as PMFBY:

  • 2% of sum insured for kharif food/oilseed crops
  • 1.5% of sum insured for rabi food/oilseed crops
  • 5% of sum insured for commercial and horticultural crops

Centre and state share the remaining actuarial premium 50:50, with the 2020 Revamped framework capping Centre's share at 25% (irrigated) and 30% (unirrigated) for staple food crops.

Claim cycle — faster than PMFBY

Because RWBCIS claims are based on automatically-measured weather data, the settlement is faster than PMFBY's CCE-dependent yield route:

  • Weather data is pulled from RWS at the end of each defined risk window
  • The Term Sheet payout formula is applied to compute the claim
  • Insurer pays directly into Aadhaar-linked bank account within 45 days of the end of the risk window
  • No farmer-level loss intimation or survey is required

Advantages and limitations

Advantages: transparent and pre-published triggers, no field survey needed, faster payout, no moral hazard, suitable for horticultural and high-value crops. Limitations: basis risk (weather at RWS may not reflect farmer's plot), sparse RWS network in some clusters, no payout if the weather index is normal even when the farmer's crop actually fails for other reasons (pest, disease, hail outside notified window).

See also: PMFBY overview, PMFBY cluster tendering and claims cycle, CCE crop cutting experiments, PMFBY state implementation, KCC.

Sources

  1. RWBCIS Operational Guidelines. Department of Agriculture & Farmers Welfare.
  2. RWBCIS launch. Press Information Bureau.
  3. PMFBY portal — RWBCIS section. pmfby.gov.in.