PM
FASAL BIMA YOJANA – GOVERNMENT SCHEME
News:
Revision of PM Fasal Bima
Yojana norms are underway to address current challenges
What's
in the news?
●
The revision of operational guidelines for
Pradhan Mantri Fasal Bima Yojana (PMFBY) is under process to address some of
the challenges being faced in the implementation of the scheme, according to
the Insurance Regulatory and Development Authority of India (IRDAI).
Pradhan
Mantri Fasal Bima Yojana (PMFBY):
●
Launched in 2016 and is being administered
by the Ministry of Agriculture and
Farmers Welfare.
●
It replaced the National Agricultural
Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme
(MNAIS).
Aim:
To provide a comprehensive insurance cover against the failure of the crop thus
helping in stabilising the income of the farmers.
Scope: All food & oilseed crops and annual
commercial/horticultural crops for which past yield data is available.
Premium:
●
The prescribed premium is 2% to be paid by farmers for all Kharif
crops and 1.5% for all rabi crops. In the case of annual commercial and
horticultural crops, the premium is 5%.
●
Premium cost over and above the farmer
share was equally subsidized by States and GoI.
●
However, GoI shared 90% of the premium
subsidy for North Eastern States to promote the uptake in the region.
Implementation:
By empanelled general insurance
companies. The selection of the Implementing Agency (IA) is done by the
concerned State Government through bidding.
Risks
covered:
●
Yield
loss
(standing crops, on notified area basis): Comprehensive risk insurance is
provided to cover yield losses due to non-preventable risks, such as (i)
Natural Fire and Lightning (ii) Storm, Hailstorm, Cyclone, Typhoon, Tempest,
Hurricane, Tornado etc. (iii) Flood, Inundation and Landslide (iv) Drought, Dry
spells (v) Pests/ Diseases etc.
●
Prevented
Sowing (on notified area basis): - In cases where majority
of the insured farmers of a notified area, having intent to sow/plant and
incurred expenditure for the purpose, are prevented from sowing/planting the
insured crop due to adverse weather conditions, shall be eligible for indemnity
claims up to a maximum of 25% of the sum-insured.
●
Post
- Harvest losses (individual farm basis): Coverage is
available up to a maximum period of 14 days from harvesting for those crops
which are kept in “cut & spread” condition to dry in the field after
harvesting, against specific perils of cyclone / cyclonic rains, unseasonal
rains throughout the country.
●
Localised
Calamities (individual farm basis): Loss / damage resulting from
occurrence of identified localized risks i.e. hailstorm, landslide and
Inundation affecting isolated farms in the notified area.
Revamped
PMFBY:
The revamped PMFBY is
often called PMFBY 2.0, it has the following features.
Completely
Voluntary:
●
Enrolment 100% voluntary for all farmers
from 2020 Kharif.
●
Earlier, it was compulsory for loanee
farmers availing Crop Loan/Kisan Credit Card (KCC) account for notified crops.
Limit
to Central Subsidy:
●
The Centre has decided to limit the PMFBY
premium rates - against which it would bear 50% of the subsidy - to a maximum of 30% in un-irrigated and 25% in
irrigated areas.
More
Flexibility to States:
●
The government has given the flexibility
to states/UTs to implement PMFBY and given them the option to select any number
of additional risk covers/features.
Investing
in IEC Activities:
●
Insurance companies have to now spend 0.5% of the total premium collected
on Information, Education and Communication (IEC) activities.
Status:
●
Several states have opted out of the
scheme like Maharashtra, Andhra Pradesh, Jharkhand, Telangana, Bihar, Gujarat
& Punjab.