Pradhan Mantri Fasal Bima Yojana

13th Jan, 2016

Pradhan Mantri Fasal Bima Yojana

Background:

The new Crop Insurance Scheme is in line with One Nation – One Scheme theme.  It incorporates the best features of all previous schemes and at the same time, all previous shortcomings/weaknesses have been removed. 

The old scheme are National Agriculture Insurance Scheme, 1999 and Modified National Agriculture Insurance Scheme.

Features:

i)               Premium of only 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops. 

In case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%. 

The premium rates to be paid by farmers are very low and balance premium will be paid by the Government to provide full insured amount to the farmers against crop loss on account of natural calamities (Hailstorm, Landslide, Inundation, Storm, Cyclone, Unseasonal Rains)

ii)             There is no upper limit on Government subsidy. 

iii)      Smart phones will be used to capture and upload data of crop cutting to reduce the delays in claim payment to farmers. 

    Remote sensing will be used to reduce the number of crop cutting experiments.