As a farmer, one of the biggest risks you face every cropping season is the unpredictability of weather patterns. A single catastrophic weather event such as floods, hailstorms or drought can cause significant damage to your crops, leading to a significant loss of income. This is where crop insurance comes in handy, providing farmers with financial protection against crop losses due to adverse weather events or other perils.
The Indian government provides crop insurance under the Pradhan Mantri Fasal Bima Yojana (PMFBY). The scheme is designed to provide insurance cover to farmers against several perils for notified crops. For the 2020-21 cropping season, the government has set the insured crop area at 28.5 crore hectares from 19 crore farmers, with a sum insured of Rs. 6 lakh per hectare. Farmers are expected to pay a nominal premium of 1.5% of the sum insured for kharif crops and 2% for rabi crops while the remaining amount is borne by the government.
To claim insurance amount under the PMFBY scheme, farmers must first report the crop loss to the insurer or the nearest agriculture department within 72 hours of the occurrence of the event. The farmer must also submit the necessary documents such as Aadhaar card, bank passbook, and other verification documents. Crop cutting experiments will also be carried out by the insurer to determine the losses incurred.
The amount of insurance claim that a farmer can receive will depend on various factors such as the level of coverage, nature and extent of the loss, and the sum insured. In the case of the PMFBY scheme, the insurance payout is based on the area affected and the extent of yield loss. If the insured area or crop experiences a loss of more than 33%, the farmer will receive full insured value compensation. If, however, the loss is less than 33%, the compensation amount will be pro-rated based on the extent of the loss.
In conclusion, crop insurance is an essential protection mechanism that offers farmers financial assistance during times of crop loss or damage due to uncertain weather conditions or other perils. As a farmer, it is important to understand the guidelines and procedures for claiming insurance amount under the PMFBY scheme. With timely reporting and submission of required documents, farmers can receive the necessary compensation to cover their losses and sustain their livelihoods.