PM FASAL BHIMA YOJANA
- February 6, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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PM FASAL BHIMA YOJANA
Subject : Government Schemes
Context : The number of farmers’ crop insurance claims that were rejected by insurance companies under the Centre’s flagship Pradhan Mantri Fasal Bima Yojana (PMFBY) multiplied 10 times in just two years.
Concept :
- Launched in April, 2016, after rolling back the earlier insurance schemes viz. National Agriculture Insurance Scheme (NAIS), Weather-based Crop Insurance scheme and Modified National Agricultural Insurance Scheme (MNAIS).
- Premium: It envisages a uniform premium of only 2% to be paid by farmers for Kharif crops, and 1.5% for Rabi crops. The premium for annual commercial and horticultural crops will be 5%.
- The scheme was conceived as a milestone initiative to provide a comprehensive risk solution at the lowest uniform premium across the country for farmers.
- Premium cost over and above the farmer share is equally subsidized by States and GoI.
- However, GoI shares 90% of the premium subsidy for the North Eastern States to promote the uptake in the region.
Coverage of Risks and Exclusions:
- Following stages of the crop and risks leading to crop loss are covered under the scheme.
- Prevented Sowing/ Planting Risk: The insured area is prevented from sowing/ planting due to deficit rainfall or adverse seasonal conditions
- Standing Crop (Sowing to Harvesting): Comprehensive risk insurance is provided to cover yield losses due to non-preventable risks, viz. Drought, Dry spells, Flood, Inundation, Pests and Diseases, Landslides, Natural Fire and Lightening, Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane and Tornado.
- Post-Harvest Losses: Coverage is available only up to a maximum period of two weeks from harvesting for those crops which are allowed to dry in cut and spread condition in the field after harvesting against specific perils of a cyclone and cyclonic rains and unseasonal rains.
- Localized Calamities: Loss/ damage resulting from the occurrence of identified localized risks of hailstorm, landslide, and Inundation affecting isolated farms in the notified area.