Pradhan Mantri Fasal Bima Yojana launched

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The Union Cabinet approved the launch of Pradhan Mantri Fasal Bima Yojana (Prime Minister Crop Insurance Scheme) in which the premium rates to be paid by the farmers have been brought down substantially so as to enable more farmers avail insurance cover against crop loss on account of natural calamities. PMFBY will replace the existing two schemes National Agricultural Insurance Scheme as well as Modified NAIS which have had some inherent drawbacks. Private insurance companies, along with the Agriculture Insurance Company of India Ltd, will implement the scheme. All claim liability will be on insurer and the government would give upfront premium subsidy. The scheme will come into effect from the upcoming kharif season. Under the new scheme, farmers will have to pay a uniform premium of two per cent for all kharif crops and 1.5 per cent for all rabi crops. For annual commercial and horticultural crops, farmers will have to pay a premium of 5 per cent. The remaining share of the premium, as in previous schemes, will continue to be borne equally by the Centre and the respective state governments. The use of technology will be encouraged to a great extent. 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. The new Crop Insurance Scheme will also seek to address a long standing demand of farmers and provide farm level assessment for localized calamities including hailstorms, unseasonal rains, landslides and inundation.

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