Pradhanamantree Fasal Bima Yojana (PMFBY), also known as the Prime Minister’s Crop Insurance Scheme, is an agricultural insurance program introduced by the Government of India. Launched in 2016, this scheme aims to provide financial support to farmers in times of crop failures and yield losses due to various factors such as natural calamities, pests, and diseases.
The main objective of PMFBY is to provide affordable crop insurance coverage to all farmers across the country, thereby mitigating the risks associated with farming and promoting their overall welfare. This scheme ensures that farmers receive timely compensation for crop losses, enabling them to recover from such setbacks and continue agricultural activities without bearing excessive financial burdens.
Under PMFBY, both loanee and non-loanee farmers are eligible to enroll in the scheme. The premium rates are highly subsidized to make it affordable for all farmers. The premium payable by farmers is fixed at 2% of the sum insured for Kharif crops, 1.5% for Rabi crops, and 5% for horticultural crops. The remaining portion of the premium is shared equally between the central and state governments, effectively reducing the burden on individual farmers.
To simplify the enrollment process and improve accessibility, PMFBY allows farmers to register online through authorized insurance companies and banks. The insurance coverage is provided for the entire crop cycle, including pre-sowing to post-harvest stages, minimizing the risks faced by farmers at various stages of cultivation.
The coverage extends to many types of crops including food grains, oilseeds, annual commercial/horticultural crops, and perennial crops. The scheme also provides coverage for localized risks such as landslide, hailstorm, inundation, cyclone, pests, and diseases. It’s noteworthy that the insurance benefits are applicable for areas where farmers practice both traditional and modern farming techniques.
If any loss or damage occurs to farmers’ insured crops, they are required to inform the concerned authorities within 72 hours. The claims are settled by the insurance companies within a specific time frame, ensuring timely compensation to the affected farmers. This process helps maintain trust and transparency among farmers and insurance companies, fostering a strong partnership for agricultural risk management.
Furthermore, PMFBY promotes the use of technology in the insurance process. Smartphones are used to capture and upload crop-related information such as area sown, crop yield, and crop losses, which facilitates efficient data management and faster claim settlements. The integration of satellite imagery and remote sensing techniques also helps in accurate assessment of crop conditions and damage, reducing delays in claim processing.
Since its implementation, Pradhanamantree Fasal Bima Yojana has been a major step towards safeguarding the interests of farmers in India. It has proven effective in providing financial security to farmers and their families in times of crop failures, ensuring the sustenance of the agricultural sector and boosting rural prosperity. By minimizing the risks associated with farming, this scheme encourages more farmers to participate in agricultural activities, contributing to the overall development of the nation’s agricultural sector.