Pradhan Mantri Fasal Bima Yojana (PMFBY) :

Objectives :

  • The objective of Pradhan Mantri Fasal Bima Yojana (PMFBY) is to provide insurance coverage and financial support to the farmers in case of failure of any of the notified crops due to natural calamities, pests or diseases.
  • To  stabilise the income of farmers to ensure their continuance and contribution in farming.
  • To encourage farmers to adopt  modern and innovative  agricultural practices.
  • Ensuring flow of credit to the agriculture sector and allied areas.

Highlights of Pradhan Mantri Fasal Bima Yojana (PMFBY) Scheme :

  • In Pradhan Mantri Fasal Bima Yojana (PMFBY) there is no capping in premium and there is one premium rate throughout the India.
  • In PMFBY ,It is 1.5%, 2% and 5% for all Rabi, Kharif and horticultural/commercial crops, respectively.
  • Balance premium to be paid by the Government to provide full insured amount to the farmers in crop loss in case of  natural disaster/calamities.
  • No upper limit on Government subsidy. Even if balance premium is 90%, it will be given by the Government.
  • The use of technology will be encouraged on wide scale. 
  • Smart phones will be used to capture data/photos and upload data/photos of crops to reduce the delays in claim payment to farmers.
  • Use of Remote Sensing Technology & Drones for quick estimation of crop losses to get money transferred to account fastly by Direct Benefit Transfer(DBT).
  • It also covers  post-harvest losses.
  • It also covers localised crop losses for example draughts, hailstorms , flood etc.
  • There is exemption from Service Tax liability of all the services involved in the implementation of this scheme.
  • Central Government  share in premium  subsidy to be increased  for North Eastern States from the past sharing ratio at 50:50 to 90 %.

Farmers to be Covered in Pradhan Mantri Fasal Bima Yojana (PMFBY) :

  • In past,it was mandatory for farmers who have taken institutional loans from banks but It is  optional for farmers who have not taken institutional credit.
  • Enrolment under the PMFBY Scheme to be made voluntary for all farmers.

Unit of Insurance under PMFBY :

  • The PMFBY Scheme shall be implemented on an Area Approach basis.
  •  For major crops, the Unit of Insurance shall  be Village or Village Panchayat level and for minor crops it may be at a higher level depending upon the requirement.

Risks covered under the Pradhan Mantri Fasal Bima Yojana (PMFBY) are :

  • Yield  Losses on standing crops on notified area basis.  Extensive risk insurance is being provided to cover yield losses due to non-preventable risks for example – Hailstorm, Cyclone,   Flood,  Natural Fire , Lightning , Inundation and Landslide, Drought, Dry spells, Pests/ Diseases also will be covered in this scheme.
  • If in case where majority of the insured farmers in a notified area,  are prevented from sowing or planting the insured crop due to adverse weather conditions, they  shall be eligible for insurance claims upto a maximum of 25 % of the amount insured.
  • In post-harvest losses, coverage will be available up to a maximum period of 14 days from harvesting for those crops which are kept as in dry  “cut & spread” condition in the field.
  • For some local problems , Loss or damage resulting from some localized risks like hailstorm, landslide, flood etc and Inundation affecting those farms in the notified area would also be covered.

New Changes Approved under Pradhan Mantri Fasal Bima Yojana (PMFBY) are:

  • For 3 years the Allocation of business to Insurance Companies is to be done.
  • Central Government Subsidy under PMFBY is to be at the premium rates of up to 30% for un-irrigated areas or crops and 25% for irrigated areas or crops.
  • Districts be considered as irrigated area/district having 50% or more irrigated area.
  • Flexibility to States and Union Territories to implement the Scheme with option a to select any number of additional risk covers like prevented sowing,  local area calamity like draught, flood etc , mid-season adversity and post-harvest losses.
  • For estimating   losses and claims in crops , 2-Step Process is to be followed based on  using specific conditions like weather indicators, satellite indicators, etc. for each area along with normal  and deviation ranges.
  • Enrolment under the PMFBY Scheme to be made voluntary for all farmers.
  • In case of not providing   yield data beyond last date by the States to implementing Insurance Companies, claims will be settled based on yield arrived through the use of Technological solutions .

How Farmers can apply Online :

How to calculate the insurance premium to be payed :

Shivanshu Mehta

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