(PMFBY) Pradhan Mantri Fasal Bima Yojana | Crop Insurance Scheme
As part of budget 2017 finance minsiter made some big announcements and one of them is related to Fasal Bima Yojana. For fiscal year 2017-2018, General Insurance Companies in India will experience massive revenue growth. This is because of the fact that the Union Budget of 2017-2018 announced a budget allocation of INR 13,240 crores for FY 2017-2018 for Fasal Bima Yojana. Currently, this budget stands at INR 5,500 crores.
During the budget speech today (February 1, 2017), Arun Jaitley – current Finance Minister of India, announced that the budget will be increased for increasing the coverage provided for crop area under the PMFBY or Pradhan Mantri Fasal Bima Yojana. The government aims at providing coverage for 40% of crop area in FY 2017-2018 and this will be ramped up to 50% coverage in the next fiscal year. As a result of this, budget allocation has been ramped up by more than 100%.
Currently, crop insurance is provided under the Fasal Bima Yojana for products of Kharif and Rabi. The currently allocated budget for crop insurance is INR 5,500 crores.
Jaitley announced that the government is expecting 4.1% growth in agriculture because of better monsoons. The agrarian industry experienced a massive government-push for crop insurance and farmers actually had their crops covered / insured for both the seasons. This happened because in previous years, many farmers made massive claims after bad rainfalls.
Crop insurance has been made affordable by the government using Fasal Bima Yojana. Currently even small farmers and medium farmers are capable of affording crop insurance. This is largely due to the fact that for Rabi crops, farmers need to provide only 1.5% of total premiums and for Kharif crops, the farmers are required to pay only 2% of total premiums.
Fasal Bima Yojana has also reduced farmers’ share of premium to 5% for annual crops that fall under horticultural and commercial categories. The scheme also provides coverage to share-croppers and other non-loanee farmers.
There are various insurers who have been empaneled under the Fasal Bima Yojana. They are:
- SBI General Insurance
- IFFCO-Tokio General Insurance
- HDFC-ERGO General Insurance
- ICICI-Lombard General Insurance
- Agricultural Insurance Company of India
There are six other insurers listed in Fasal Bima Yojana.
The Scheme does not cap premium rates. Also, claims against total sum assured is paid out without a single penny being deducted.
States like Andhra Pradesh, West Bengal, Orissa, Himachal Pradesh, Jharkhand, Uttarakhand etc. have nicely embraced the scheme and they have actually given contracts to insurers to offer crop insurance in those states.
Good thing that state governments are free to allocate more budget into the scheme, if required. For instance, Maharashtra, which has been hit by droughts have actually increased state budget allocation for PMFBY.
On 13th January, 2016, the Govt. under the leadership of Prime Minister Shree Narendra Modi has launched a new crop insurance policy named pradhan mantri fasal bima yojana this will help in easing of the burden of premiums on farmers who take loans for their cultivation. The new crop insurance scheme will have a rebated premium rate on the principal sum insured. The Union cabinet has also decided to make the settlement process of the insurance claim, fast and easy so that the farmers do not have to face any trouble regarding the crop insurance plan.
Pradhan Mantri fasal bima yojana will be implemented under a budget of Rs. 17,600 crore. This will not only save the farmers from getting their crops damaged in natural calamities, but also will provide financial support to them. The Govt. has pledged to fight the burning issue of the increasing number of farmers’ suicide in the country. This scheme will be implemented throughout the country and will start its functioning from the next Kharif season of crop harvesting, i.e. June. The insurance burden will be collectively taken by the centre as well as state governments.
India is a land of farmers where the maximum proportion of rural population depends on agriculture. So the Govt. of India is dedicated to protect its farmers. This will not only help in sustaining livelihood of the farmers, but also increase the yield of crops grown. But there are several natural hindrances which prevent growth of crops. These are droughts, irregular rainfall, floods, etc. These natural calamities result in poor yield of crops and as the crops gets damaged midway and production becomes less. Another problem is when there is an over production of crops which happens sometimes.
Then the market demand falls and thus the farmers do not get good prices for their crops and suffer great losses. This leads to greater economic losses for farmers and in some cases, farmers commit suicide. So to provide financial support to the farmers of this country, the Govt. of India has replaced the old crop insurance plan and drafted a new one this year.
Earlier, the insurance scheme which was functional was called the National Agriculture Insurance Scheme (NIAS), which was implemented in the year 1999. But there were some loopholes in that scheme. It was implemented only in 14 states of India. The insurance settlements were handled by the insurance company named, Agriculture Insurance Company of India Ltd. (AIC). Under NIAS, the insurance premium rates were 1.5 % to 3.5 % of the total sum assured for food crops like pulses, oilseeds, cereals, etc. But for commercial crops like cotton and horticultural crops, the actuarial premium rates were charged.
The NIAS facilities were given according to the areas where the calamities are frequent and later it was converted into MNIAS i.e. Modified NIAS. The MNIAS was also not a successful project as it was applied in six states of India. But these schemes were not successful because of several reasons like low sum insured amount and slow claim process.
According to reports of Home Ministry, in the past year 2015, there were 207 draught hit districts throughout the country where the farmers suffered great economic losses on crop cultivation. Also reports show that more than 300 districts were affected by irregular rainfall. This resulted in a large number of farmer suicides as there was no strong insurance plan to get through the losses and start afresh. Over 3000 farmers have chosen the path of suicide in the last three years. Most suicide cases were registered with the state of Maharashtra.
So to fight back this problem and to provide a good financial support to the farmers of the country, the Modi Govt. has launched the new crop insurance scheme by making some alterations in the existing scheme. The new scheme is named Pradhan Mantri Fasa Bima Yojana (PMFBY). Under this new crop insurance plan, the premium rates will be discounted from the existing rates for all types of crop like Kharif crops, Rabi crops, horticulture crops and commercial crops.
As per pradhan mantri fasal bima yojana, the premium will be 2 % of the sum insured for Kharif season crops and 1.5 % for Rabi season crops. The rates are also applicable for oilseeds. The premium rates for commercial crops like cotton and other horticultural crops will be 5 % of the insurance sum assured. The govt. has also stressed on the use of technology to provide a strong insurance scheme to farmers and make the process efficient and fast.
At present, only those farmers who have taken loans from the Govt. for their cultivation is eligible for insurance of their crops. But according to the new scheme, all farmers whether he has taken a loan or not, is eligible for the new crop insurance scheme. The insurance plan will be handled under a single insurance company, AIC and entire insurance process, right from joining of farmers to disbursement of claim is to be made electronically to make it a fraud free and effective scheme.
Apply Fasal Bima Yojana in SBI and cost
A lot of readers have asked about the process to apply fasal bima yojana in sbi and its respective cost. Since this is a new scheme so government have not come up with exact estimate of the cost and even SBI does not have a document stating this. So wait for some time to get the exact information.
|Scheme Applicable In||All Union territories and States|
|Who are eligible||Tenant, sharecropper and SAO loan farmers|
|Crops||Kharif And Rabi Crops|
|Premium rates||1.5% to 3.5 SI/Actuarial rate or less|
|Risk coverage on||Natural Disasters and pest attack|
|Sum of Coverage||Depends on the Premium|
|Duration of The Scheme||Three Years|
Eligibility Fasal Bima Yojana
The PM Fasal bima Yojana is a flagship crop insurance scheme which has been launched by the NDA Govt. in January, 2016 benefitting all the farmers of the nation. The Ministry of Agriculture, which is administering the implementation of this crop insurance scheme all over India, has set some guidelines regarding the eligibility criteria of the nature of beneficiaries. The farmers must become eligible for the Fasal Bima scheme to get financial benefits from the centre for their cross wastage.
The beneficiaries of the scheme must be Indian farmers harvesting Rabi, Kharif or other commercial and horticultural crops. Earlier, the old crop insurance scheme was NAIS which was not covered in all states or districts of the country. But in this new scheme, all farmers of all districts of India are eligible.
The farmers must harvest those crops which are notified for harvesting under the Ministry of Agriculture in that land / area. After that if the crop gets damaged due to natural calamities, pests, etc., and then only insurance claim can be made, otherwise not. Those farmers who have already a crop loan account with the Govt. arte automatically eligible for this scheme.
- Over 90 lakhs farmers have availed this scheme (PM Modi) as on 22nd August
(PMFBY) Pradhan Mantri Fasal Bima Yojana in Hindi
भारत देश कृषि प्रधान देश हैं इसकी आर्थिक व्यवस्था कृषि एवं किसानो पर निर्भर करती हैं. परन्तु गत कई वर्षो से किसानो की हालत बिगड़ती ही जा रही हैं उन्हें मजबूती एवम सहारा देने के उद्देश्य से फसल बिमा एक नयी कृषि से संबंधी बिमा पॉलिसी शुरू की जा रही हैं.
प्रधानमंत्री फसल बिमा योजना, किसानो के लिए कुछ हद तक राहत का कार्य करेगी, इसी उद्देश्य के साथ लोहड़ी के दिन मोदी जी ने इस योजना का ऐलान किया. इस योजना के लिए फंड केंद्र और राज्य दोनों सरकारों द्वारा वहन किया जायेगा.
प्रधानमंत्री फसल बिमा उद्देश्य, प्रीमियम एवम् योग्यता
यह योजना किसानो को उनके नुकसान की भरपाई के तौर पर शुरू की जा रही हैं जिसके अंतर्गत किसान अपनी फसलो का बिमा करवा सकेंगे जिसका प्रीमियम बहुत कम होगा ऐसा करने पर अगर किसान की फसल को नुकसान पहुँचता हैं तब उन्हें बिमा राशि उपलब्ध करायी जायेगी और इस योजना के सरलीकरण के लिए भी कई उचित फैसले लिए गए हैं ताकि जल्द से जल्द सहायता राशि पहुँचाई जा सके.
यह बिमा पॉलिसी अगली खरीफ की फसल से लागू होंगी
|फसल के प्रकार||प्रीमियम दर %|
प्रधानमंत्री फसल बिमा योजना के अंतर्गत कोई भी किसान अपनी फसल का बिमा करवा सकता हैं. इसके तहत बटाईदार एवम खोट की खेती भी शामिल हैं.
प्रधानमंत्री फसल बिमा योजना से किसानो को कम दर में अधिक बिमा राशि मिलेगी जिससे उन्हें उत्साह मिलेगा और देश में किसानो की स्थिती में परिवर्तन आयेगा.