Crop Insurance Scheme (Pradhan Mantri Fasal Bima Yojana) {प्रधानमंत्री फसल बीमा योजना}

Overview

Pradhan Mantri Fasal Bima Yojana or Crop Insurance scheme was launched by Prime Minister Narendra Modi on 18th February 2016 to provide the insurance for farmers for their yields. The new crop insurance scheme is the line with one nation scheme for the welfare of farmers. It eliminates all the previous errors and shortcomings. This incorporates the best features for the farmers. The Pradhan Mantri Fasal Bima Yojana replaced the two earlier schemes like National Agricultural Insurance and Modified NAIS.

Objectives

• The government will provide full insurance and financial coverage to the farmers in case of any crop failure due to natural disasters, pests or diseases, etc.
• To establish the source of income for farmers to ensure the continuation of farming.
• Encourage the farmers to adopt the new techniques and practices of modern agriculture. 
• The government is fully guaranteed to get credit for the agriculture sector.

Modifications

• Cap is removed now and so, farmers will benefit against the full sum insurance claim without any delays to farmers.
• Modern technology is used.
• Smartphones are used to capture and upload the new techniques and data of crop cutting. 
• They also reduce the number of crop cutting experiments to remote sensing.

Features

• There will be a uniform premium of 2% to be paid by farmers for Kharif crops and 1.5% for all rabi crops. In the case of annual commercial and horticulture crops, the premium to be paid by farmers will be only 5%. The premium rates to be paid by farmers are very low, and a balance premium will be paid by the government to give the full insured amount to the farmers against crop loss on account of natural calamities.

• The use of technology will be encouraged to a great extent. Smartphones will be used to capture and upload data of crop cutting to decrease the delays in claim payment to farmers. 

• There is no limit on government subsidy. While there is a premium of 90%, it will be borne by the government.

Farmers covered

• Compulsory coverage: The enrolment in this Yojana subject to the possession of insurable interest on the cultivation of the notified crop in the notified area, shall be mandatory for the below categories of farmers:-
• Farmers in the notified area possess a crop loan account/KCC account to whom credit limit is sanctioned for the notified crop during the crop season;
• Other farmers whom the government may decide to include from time to time.
• Voluntary coverage: voluntary coverage may be obtained by most of the farmers not covered above and including crop KCC account whose credit limit is not renewed.

Risks covered 

• Comprehensive risk insurance is given to cover yield losses due to non-preventable risks such as natural fire and lighting, cyclone, hailstorm, hurricane, tornado. Risks due to flood, landslide, drought, dry spells, and diseases will be covered. 
• In cases where the majority of the farmers of a notified area having the intent to sow/plant and incur expenditure for the aim are prevented from planting the insured due to weather conditions, they shall be eligible for indemnity claims up to a maximum of 25% of the sum assured.
• For specific localized problems, damage resulting from the occurrence of identified localized risks like a landslide, hailstorm, and inundation affecting isolated farms in the notified area would be covered.
• In post-harvest losses, coverage will be available for a maximum period of 14 days from harvesting for those crops which are kept in “cut & spread” condition to dry in the field. 

Registration Process for PM Crop Insurance Scheme

Step 1: Visit the official online portal.

Step 2: Click on the "Farmer Corner".

Step 3: Click on the “Guest Farmer” button.

Step 4: Fill the form and submit to register for the scheme.