Crop damage due to recurring annual waves of floods in Assam is a perennial problem. Reintroduction of paddy inundation insurance as a localised calamity cover under Pradhan Mantri Fasal Bima Yojana (PMFBY) from the 2026 Kharif season has raised hopes for strengthening farmers’ resilience in the state. Building awareness among affected farmers about eligibility, PMFBY registration, documentation and the claim process is essential to ensure that eligible farmers are able to claim the compensation in time. Removal of paddy inundation insurance from the list of localised calamity categories under PMFBY in 2018 created a protection gap for a large section of affected farmers in flood-prone districts and increased their economic vulnerabilities due to crop loss in seasonal flooding. The central government’s move to reintroduce it followed a recommendation by an expert committee constituted by the Department of Agriculture and Farmers’ Welfare. In its ‘Report on defining modalities of crop loss by wild animal attack and inundation for paddy crop under localised risk’, the expert committee explained how flood-induced paddy inundation leads to significant agricultural losses. The report highlighted that the extent of these losses varies based on factors like flood duration, water depth, and the crop’s growth stage. Early-stage inundation can drown seedlings, while prolonged flooding during later stages can damage grains, reduce yield, and degrade crop quality. The economic impact includes reduced harvests, increased input costs for replanting or crop recovery, and potential price hikes, it added, reflecting its findings based on in-depth consultations on paddy submergence with agriculture scientists, insurance and reinsurance companies, and state governments. The operation guidelines of PMFBY issued in 2023 excluded hydrophilic crops like paddy, sugarcane, jute and mesta under localised insurance claims for inundation. Since paddy is the major crop in Assam, this exclusion left most paddy farmers in the state without safety shields against inundation damage during annual floods. There is a provision for the state government to extend relief assistance from the State Disaster Response Fund, but only when the crop damage is above 33%, and also the maximum relief assistance that a farmer can avail is capped at Rs 17,000 per hectare. As the SDRF relief is partial, a large section of paddy farmers in flood-affected areas face a wide financial gap which erodes their capacity of growing paddy at the same scale in subsequent seasons. The expert committee rightly insisted that while controlled water levels (usually 5–10 cm) are beneficial, excess or prolonged submergence, especially at flowering and maturity, can lead to serious yield and quality losses. “Excess water in paddy cultivation can be harmful, particularly at specific stages. Although paddy (rice) is generally grown in flooded conditions, prolonged or poorly managed excess water can cause damage at the following stages,” the report states, reflecting concerns expressed by state governments over exclusion of paddy from inundation provision to claim insurance under PMFBY. The committee’s recommendation, however, provided protection to insurance companies against fraudulent and fictitious intimations and claims, citing withdrawal of the coverage for inundation in paddy crops due to instances of such fraudulent claims. As any intimation of this localised claim is made mandatorily through the Crop Insurance App only to prevent such fraudulent claims, the farmers being informed and educated by such a technical requirement is crucial to widen the coverage for insurance under PMFBY for paddy inundation. Uploading of geotagged photographs clearly depicting submerged vegetative growth or lodged panicles, ensuring visual evidence to support the claim which has been made mandatory under the new norm, also demands that farmers must be provided hand-holding support by agriculture departments and insurance companies for meeting such compliance on digital applications and required documentation. Restoration of paddy inundation for crop insurance coverage under PMFBY has revived the missing layer of financial security for vulnerable farmers in flood-prone areas, but the objectives behind reintroduction will be fully achieved only when farmers are made aware of all the rules and norms which are tech-heavy. The state agriculture department can play the most crucial role in building the awareness. As the premium share of the paddy farmers is very low at 2% and the remaining 98% of the insurance premium is shared between the central government and northeastern states in a 90:10 ratio, the financial incentive for increasing crop insurance coverage under PMFBY for paddy in the state is quite big, which the state must leverage to increase the resilience of paddy farmers against annual flooding. Panchayats, autonomous councils, farmer producer companies, and farmer producer organisations which have a strong presence at the grassroots can be roped in for intensifying the awareness campaign and organising special camps to increase registration and guide applicant farmers with the documentation and claim submission. Wide publicity on the reintroduction of the inundation insurance coverage is an urgent need to build momentum. By pairing flood-resistant paddy varieties with inundation insurance coverage, Assam can build a dual shield against monsoon extremes.