Agriculture sector in India is prone to higher risk. Pradhanmantri Fasal Beema Yojna is an exclusive government scheme to protect and secure famers from natural calamities, Pest infestation and other agriculture related risks. Main purpose of this study is to find out the relation between literacy level of farmers and their awareness about the scheme. It is evident from study that educated farmers are more aware about scheme, benefits, application process and claim procedure, while illiterate or less educated farmers have very less knowledge about the scheme. The study also indicates that the higher the literacy level of farmers, the higher the possibility of farmers getting benefited from scheme. Therefore, it is necessary that the government should make special efforts to spread awareness among farmers, specially in the areas where the literacy rate is lower.