Tractor Insurance 2025 has officially been launched across India as part of the government’s rural welfare and agri-safety initiatives. Starting August 2025, small and marginal farmers now have access to subsidized tractor insurance that covers both accidental damage and third-party liability, offering greater financial protection to rural agricultural workers.
This new tractor insurance policy, spearheaded by the Ministry of Agriculture and Rural Development, is tailored specifically for rural India, where tractors are not only used for farming but also serve as the primary means of transport and haulage. The scheme ensures that farmers get quick claim settlements and continued use of their tractors with minimal downtime.
Who Is Eligible for the Tractor Insurance Scheme?
The Tractor Insurance 2025 scheme targets both individual farmers and farmer groups or co-operatives operating tractors in agricultural or semi-commercial capacities. This includes tractors registered in the names of family-owned farms, gram panchayats, or rural businesses.
Eligibility requirements include:
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Must be a resident of rural India
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Tractor must be used primarily for agricultural purposes
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Applicant must own the tractor or operate it through a self-help group or farmer co-op
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Valid RC (Registration Certificate) and pollution certificate required
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Insurance can be renewed annually or availed for 3-year terms
The initiative is currently live in over 20 states including Uttar Pradesh, Maharashtra, Bihar, Tamil Nadu, Rajasthan, and Madhya Pradesh.
What the Insurance Covers – Policy Features
The tractor insurance plan launched under this scheme is comprehensive and affordable. It includes personal accident coverage, third-party liability, damage due to fire or natural disasters, and theft protection.
Core policy benefits include:
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Coverage up to ₹5 lakh for accidental damages
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₹2 lakh compensation for death or permanent disability of the owner/driver
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Liability protection for damages caused to third parties
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Protection against fire, flood, lightning, and riots
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Add-on for trailer insurance at minimal premium
This farmer benefit policy also offers special coverage for tractors retrofitted with spraying or threshing equipment.
Table: Tractor Insurance Scheme Highlights – August 2025
| Feature | Details |
|---|---|
| Premium (Base Plan) | ₹950 per year (subsidized by 60%) |
| Sum Insured | ₹5 lakh (vehicle), ₹2 lakh (personal accident) |
| Eligible Tractor Type | Agriculture-use tractors only |
| Optional Add-Ons | Trailer + implement insurance |
| Claim Process Duration | 7–10 working days from file submission |
Farmers can opt to pay the premium annually or choose a 3-year bundled plan for convenience and extra discounts.
How to Apply for the Insurance
The government has made applying for tractor insurance 2025 simple, with both online and offline options. Farmers can apply through local Krishi Vigyan Kendras, Common Service Centres (CSCs), RTO offices, or directly via the official agricultural insurance portal.
Steps to apply:
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Visit CSC or register on the agri-insurance web portal
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Submit Aadhaar, land ownership proof, tractor RC, and insurance form
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Choose the type of coverage: Basic, Extended, or Comprehensive
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Make the subsidized premium payment via UPI or rural bank
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Receive e-policy within 48 hours and hard copy within 7 days
Mobile vans and on-ground volunteers are also assisting digitally challenged farmers in remote villages.
Why Tractor Insurance Matters for Rural India
The tractor insurance 2025 rollout is a game-changer for Indian agriculture. In many parts of rural India, tractors are high-value assets and lifelines for farming families. Any damage or loss severely affects livelihood. This farmer benefit policy ensures that a single breakdown or accident doesn’t push families into debt.
Benefits include:
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Financial security against accidents and operational halts
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Protection against unpredictable weather-related damage
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Quick, easy, and low-cost access to quality insurance
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Encourages mechanization and reduces reliance on informal lending
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Part of India’s broader rural safety and farmer support mission
With improved access to insurance, farmers can focus more on productivity and less on recovery costs.
FAQs
What is the Tractor Insurance 2025 scheme about?
It’s a subsidized government-backed insurance plan that provides affordable coverage for agricultural-use tractors.
Who is eligible to apply for this scheme?
Any rural resident owning or operating a tractor primarily for farming is eligible, including individual farmers and farmer co-ops.
What kind of coverage does the policy offer?
It includes accident coverage, theft, natural disaster protection, and third-party liability.
How much does the insurance cost?
The base plan costs around ₹950 annually after subsidy. Multi-year plans offer additional discounts.
Where can farmers apply for this insurance?
Applications can be made at Common Service Centres (CSCs), Krishi Vigyan Kendras, or online via the agri-insurance portal.
How long does it take to receive the claim amount?
Approved claims are processed within 7–10 working days after submission of required documents.
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