Punjab is the leader in mechanization of agricultural sector in the country. The use of machinery results in some casualties both to the farmers and agricultural labour, some accidents in marketing operations are also bound to occur. There are deaths due to snakebite or other reasons. The insurance cover to the farmers farm labourers and Mandi labourers has been provided against these accidents . It is perhaps for the first time in the third world countries that blanket insurance coverage has been provided to all concerned engaged in agricultural production and its marketing operations in the State of Punjab at any time during the year. This scheme was started in 1984. The rates of compensation range from Rs. 7,500/- to 75,000/-.

This social welfare scheme of the PSAMB has been widely appreciated all over the country and some of the states have also adopted the scheme.
 

	Compensation Criteria	Relief Amount
a)	In case of death.	Rs. 75,000/-
b)	Chopping of one limb i.e., hand, arm, leg and feet or any other part of the body including damage of eye.	Rs. 30,000/-
c)	Chopping of two limbs i.e., feet, hand and leg or arm any part of the body.	Rs. 45,000/-
d)	Chopping of finger or fingers.	Rs. 7,500/-
e)	Chopping of four fingers considering chopping of one part of body.	Rs. 20,000/-        to Rs. 30,000/-