What is Pradhan Mantri Fasal Bima Yojana
Pradhan Mantri Fasal Bima Yojana is a crop insurance scheme launched by Prime Minister Narendra Modi Led NDA Government. The scheme has been launched to cater the financial needs of the farmers in the events of crops destroyed by heavy rain, other natural calamities, pests or diseases. Pradhan Mantri Fasal Bima Yojana will be implemented under a budget of Rs. 17,600 crore.
The scheme is aimed to provide insurance cover and financial support to the farmers in difficult times. In the new scheme, the shortcomings of previous crop insurance schemes have been taken care of very well. Along with this scheme, several other initiatives have been started by the central government of the welfare of the farmers.
There is no upper limit on Government subsidy. Even if balance premium is 90% it will be borne by the Government. Earlier, there was a provision of capping the premium rate which resulted in low claims being paid to farmers. This capping was done to limit Government outgo on the premium subsidy. This capping has now been removed and farmers will get claim against full sum insured without any reduction.
Objectives of Pradhan Mantri Fasal Bima Yojana
- To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests & diseases.
- To stabilize the income of farmers to ensure their continuance in farming.
- To encourage farmers to adopt innovative and modern agricultural practices.
- To ensure flow of credit to the agriculture sector.
Pradhan Mantri Fasal Bima Yojana will be implemented through the multy-agency framework selected by the insurance companies under the overall guidance & control of the Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW), Ministry of Agriculture & Farmers Welfare (MoA&FW), Government of India (GOI).
Premium of Pradhan Mantri Fasal Bima Yojana
The premium under the Pradhan Mantri Fasal Bima Yojana is way less than the previous government or private crop insurance schemes. The premium amount for Kharif crops is 2 percent and 1.5 percent of the sum insured for Rabi crops. Karif and Rabi covers most food crops and oil crops cultivated in India. The premium for commercial or horticultural crops (including cotton) is pegged at 5 percent for one year.
Risks to be Covered
Yield losses (standing crops, on notified area basis): Comprehensive risk insurance is provided to cover yield losses due to non-preventable risks, such as
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- Natural Fire and Lightning
- Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado etc.
- Flood, Inundation and Landslide
- Drought, Dry spells
- Pests/ Diseases etc
Exclusions from Pradhan Mantri Fasal Bima Yojana
The insurance cover will not be applicable in the damage of crops due to any of the following reasons.
– War & kindred perils
– Nuclear risks
– Malicious damage
– Theft or act of enmity
– Grazed and/or destroyed by domestic and/or wild animals
The Pradhan Mantri Fasal Bima Yojana was launched on 13 Januray 2016 and will came into effect from the 2016 Kharif season.
On 18 February 2016, PM Narendra Modi has also issued the detailed guidelines for implementing the Fasal Bima Yojana at a farmers’ convention that was held at Madhya Pradesh’s Sherpur village.
The complete details about the scheme can be found at the link below.