Pradhan Mantri Fasal Bima Yojana (PMFBY)
|| Pradhan Mantri Fasal Bima Yojana (PMFBY) || Pradhan Mantri Fasal Bima Yojana (PMFBY) in hindi||
Launched: 18th February, 2016
Objectives
- The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a scheme involving several stakeholders including State Governments, financial institutions, insurance companies and farmers, both loanee and non-loanee.
- It provides insurance coverage and financial support to the farmers in the event of natural calamities, pests & diseases.
- PMFBY stabilises the income of farmers to ensure their continuance in farming.
- It encourages farmers to adopt innovative and modern agricultural practices.
- The scheme provides for setting up of Technical Support Unit (TSU) with crop insurance expert to track and evaluate the scheme implementation.
Salient Features of PMFBY
- Under the scheme, farmers will have to pay a uniform premium of 2% for all kharif crops and 1.5% for all Rabi crops.
- 5% of sum insured for annual commercial and horticultural crops or actuarial rate, whichever is less.
- Actuarial rate is an estimate of the expected value of future loss. Usually, the future loss experience is predicted on the basis of historical loss experience and the consideration of the risk involved.
- The PMFBY replaces two schemes National Agricultural Insurance Scheme as well as the Modified NAIS.
- The difference between the premium paid by farmers and the actuarial premium charged was paid by the Centre and state government in the ratio of 50:50.
- Under PMFBY, there will no upper limit on government subsidy and even if balance premium is 90%, it will be borne by the government.
- Yield Losses; due to non-preventable risks, such as Natural Fire and Lightning, Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado. Risks due to Flood, Inundation and Landslide, Drought, Dry spells, Pests/Diseases also will be covered. Post-harvest losses are also covered.
- The use of technology like smart phones will be used to capture and upload data of crop cutting to reduce the delays in claim payment to farmers.
- Remote sensing, GPS, drones will be used to reduce the number of crop cutting experiments. Previous Crop Insurance Schemes
- 1985- Comprehensive Crop Insurance scheme
- 1999- National Agricultural Insurance Scheme
- 2007- Weather based crop insurance scheme
- 2010- Modified National Agricultural Insurance Scheme
