Pradhan Mantri Fasal Bima Yojana: PMFBY will provide a comprehensive insurance cover against a failure of the crop thus helping in stabilizing the income of the farmers and encourage them for the adoption of innovative practices. The Pradhan Mantri Yojana can cover all Food & Oilseeds crops and Annual Commercial, Horticultural Crops for which past yield data is available and for which requisite number of Crop Cutting Experiments (CCEs) will be conducted being a part of the General Crop Estimation Survey (GCES). The Pradhan Mantri Fasal Bima Yojana is compulsory for loanee farmer obtaining Crop Loan /KCC account for notified crops. However, voluntary for Other/non-loanee farmers who have an insurable interest in the insured crops. The Maximum Premium payable by the farmers will be 2% for all Kharif Food & Oilseeds crops, 1.5% for Rabi Food & Oilseeds crops and 5% for Annual Commercial/Horticultural Crops. The difference between premium and the rate of Insurance charges payable by farmers shall be shared equally by the Centre and State.
Pradhan Mantri Fasal Bima Yojana
With the dawn of the Modi government, the ordinary people have been gifted with many schemes. The Pradhan Mantri Fasal Bima Yojana is also one of the scheme which was introduced by Modi. The PMFBY scheme will be implemented by Agriculture Insurance Company of India and other empanelled private general insurance companies. Selection of Implementing Agency (IA) will be done by the concerned State Government through bidding. The existing State Level Co-ordination Committee on Crop Insurance (SLCCCI), Sub-Committee to SLCCCI, District Level Monitoring Committee (DLMC) shall be responsible for proper management of the Scheme.
The Pradhan Mantri Fasal Bima Yojana Scheme shall be implemented on an Area Approach basis. The unit of insurance shall be Village/Village Panchayat level for major crops and for other crops it may be a unit of size above the level of Village/Village Panchayat. The Loss assessment for crop losses due to non-preventable natural risks will be on Area approach. In case of the majority of insured crops of a notified area are prevented from sowing/planting the insured crops due to adverse weather conditions that will be eligible for indemnity claims up to a maximum of 25% of the sum-insured. However, losses due to localized perils (Hailstorm, landslide & inundation) and Post-Harvest losses due to specified perils, (Cyclone/Cyclonic rain & Unseasonal rains) shall be assessed at the affected insured field of the individual insured farmer.
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 the flow of credit to the agriculture sector.
The rate of Insurance Charges payable by the farmer will be as per the following table.
|S.No||Season||Crops||Maximum Insurance charges payable by farmer
(% of Sum Insured)
|1||Kharif||Food & Oilseeds crops (all cereals, millets, & oilseeds, pulses)||2.0% of SI or Actuarial rate, whichever is less|
|2||Rabi||Food & Oilseeds crops (all cereals, millets, & oilseeds, pulses)||1.5% of SI or Actuarial rate, whichever is less|
|3||Kharif & Rabi||Annual Commercial / Annual Horticultural crops||5% of SI or Actuarial rate, whichever is less|
Risk will be shared by IA and the Government as follows:
The liability of the Insurance companies in case of sudden damage losses computed at the National level for an agricultural crop season, shall be up to 350% of total premium collected (farmer share plus Govt. subsidy) or 35% of total Sum Insured (SI), of all the Insurance Companies combined, whichever is higher. The losses at the National level in a crop season beyond this ceiling shall be met by equal contribution (i.e. on 50:50 basis) from the Central Government and the concerned State Governments.
Procedure for settlement of Claims under PMFBY Scheme
For coverage through Banks: The claim amount along with particulars will be released to the individual Nodal Banks. The Banks at the grass-root level, in turn, shall credit the accounts of the individual farmers and display the particulars of beneficiaries on their notice board. The Banks shall provide individual farmer wise details claim credit details to IA and shall be incorporated in the centralized data repository.
For coverage through other insurance intermediaries: The claim amount will be released electronically to the individual Insured Bank Account.