Pradhan Mantri Fasal Bima Yojana
Pradhan Mantri Fasal Bima Yojana is relying on the crop insurance sector or we can say that it is a crop Insurance Scheme that directly obeys one nation’s one scheme motto. In short Pradhan Mantri, Fasal Bima Yojana is also known as PMFBY. If we look at all schemes related to the Crop insurance scheme then it is the best one. The major importance of that scheme is that it directly deals with the farmer. There will be no other person as an intermediator. MPFBY has been replacing all weak points present in the previous (Past) crop insurance scheme. It also replaced two Schemes such as National Agricultural Insurance Scheme as well as the modified NAIS.
What is the purpose of Pradhan Mantri Fasal Bima Yojana (PMFBY) to be launch in the market?
- Total insurance can be claimed by the farmer if crops are destroyed by natural activities such as falling unseasonal rain and hail, pests, diseases, etc.
- Making a constant capital of the farmer so that they are ensuring for their upcoming farming.
- This also going to help all farmers to look toward modern and high technology farming
- The agriculture cycle also works in a good cycle.
Highlights of the scheme
- Farmer required to pay only 2% for Kharif crops and 1.5 % for rabi crops. A farmer having horticulture crops then need to pay 5%. As per the insurance scheme of agriculture is very low. Apart from that government will provide a fully assured amount to the farmer in case of loss of crops by any natural disaster.
- As you must know that there will be no upper limit for government subsidy will be given.
Farmers to be covered
After the insurance of Pradhan Mantri Fasal Bima yojana farmer must follow all rules and regulation that has been released by the government.
As per the demand of farmers this scheme is is voluntary for all farmers from Kharif 2020.
Earlier to Kharif 2020, this scheme is compulsory for those farmers who belong to these categories which are given below.
- The farmer must mention the Crop Loan account /KCC account. In this account credit limit was checkout during the crop session.
- There are a lot of farmers who got chances from time to time by the government.
What are the risk factors Under this scheme?
There are a lot of risk factors through which this scheme is dependent. Let’s have a look at this one by one.
- The first risk factor is that yield loss. To recover this factor government provide risk insurance which covers used losses and all other factors. Yield losses will be only considered if it can happen through natural digester such as Natural Fire and Lightning, Storm, Hailstorm, Cyclone, Typhoon, Tempest, hurricanes, tornados. Risks due to Flood, Inundation, and Landslide, Drought, Dry spells, Pests/ Diseases also will be covered.
- Insurance is also available for post-harvest yields. But the time period for the insurance is 14 days from harvesting for those type of crops which are already found in “cut & Spread” condition.
Unit of Insurance
Yield crop insurances will be given according to area selection. It also depends upon the damage to the area. The unit of insurance is totally defined as or it depends upon “Notified Area”. Meaning in simple words that farmers can claim a unit of Insurance if any natural happening will occur and Post harvesting will be there.
Define area means the reason should be Geo-Fenced/Geo-mapped region also having homogeneous Risk profile or the notified crop. There will be a unit of insurance that will reach the effective field of the individual framer.
Calendar of Activity
|Loaning period (loan sanctioned) for Loanee farmers covered on a Compulsory basis.||April to July||October to December|
|The cut-off date for receipt of Proposals of farmers (loanee & non-loanee).||31 July||31st December|
|The cut-off date for receipt of yield data||Within a month from the final harvest||Within a month from the final harvest|
How to Apply for Pradhan Mantri Fasal Bima Yojana (PMFBY)?
These guidelines have been modified by the government. The modified guidelines of PMFBY has been applied on 1st October 2020. Have a look at these new PMFBY guidelines given below. For detailed information, applicants should be Click Here. let have a look at the complete comparison of this scheme with the previous scheme.
|SL No.||Feature NAIS||NAIS ||MNAIS ||PM Crop Insurance Scheme|
|Premium rate||Low||High||Lower than even NAIS (Govt to contribute 5 times that of the farmer)|
|One Season – One Premium||Yes||No||Yes|
|Insurance Amount cover||Full||Capped||Full|
|On Account Payment||No||Yes||Yes|
|Localized Risk coverage||No||Hail storm, Landslide||Hail storm, Landslide, Inundation|
|Post Harvest Losses coverage||No||Coastal areas - for cyclonic rain||All India – for cyclonic + unseasonal rain|
|Prevented Sowing coverage||No||Yes||Yes|
|Use of Technology (for quicker settlement of claims)||No||Intended||Mandatory|
|Awareness||No||No||Yes (target to double coverage to 50%)|