Pradhan Mantri Fasal Bima Yojana (PMFBY) is a crop insurance scheme launched by the Government of India in January 2016. The scheme aims to provide comprehensive coverage to farmers against crop failure due to natural calamities, pests, and diseases. As per the scheme, the farmers need to pay only a nominal premium rate, and the remaining amount is paid by the government.
The scheme provides coverage to all farmers, including sharecroppers and tenant farmers, who grow notified crops in notified areas. The notified crops include cereals, pulses, oilseeds, vegetables, fruits, and cotton. The scheme covers all phases of the crop cycle from pre-sowing to post-harvest and includes risks such as drought, flood, pests, diseases, and other natural calamities.
Under the PMFBY, the sum assured is based on the scale of finance and the past yield of the crop in the insured area. The premium rate for the scheme varies from 1.5% to 5% of the sum insured, depending on the crop and the area in which it is grown. The government provides subsidised premium rates to farmers, with the aim of increasing coverage and reducing the burden on farmers.
The scheme makes use of technology to ensure efficient and transparent delivery of insurance services. It relies on remote sensing, drones, and mobile applications to assess crop loss and settle claims. The scheme also makes use of a unified insurance portal that enables farmers to access information regarding insurance policies and claim settlement.
The Pradhan Mantri Fasal Bima Yojana has proved to be a boon for farmers as it provides them with a safety net against crop failure. It has helped increase the adoption of technology, improve crop management practices and increase crop productivity. The scheme has also benefited the insurance sector by increasing the penetration of crop insurance and creating new business opportunities.
In conclusion, the PMFBY is a well-conceived scheme that provides comprehensive crop insurance cover to farmers at a nominal premium rate. The scheme has proved to be a game changer for the agriculture sector in India by increasing crop production, improving farmers’ income, and strengthening the rural economy.