Pradhan Mantri Fasal Bima Yojana – Before explaining anything about the scheme I just want to tell my reader the insurance who don’t anything about it. Well, What are Insurance and why it is necessary and its importance in life? Insurance gives us the security of a thing during the time when we have nothing or the verge of having that thing. So we have support at that time as a form of insurance. We do some investments which help us financially in our worst times. In agriculture also many times the crop gets ruined due to uncertain climatic conditions or due to any other unavailability of the necessary facility.
Due to these unwanted factors, many youths are shifting from agriculture towards other jobs and also farmers are not getting financial support which again discourages him to stop doing farming. So due to these factors government initiated a new method to provide insurance to the field to provide financial support to the farmers and to again motivate youth to do farming.
Brief Description of Project
|Name of Scheme||Pradhan Mantri Fasal Bima Yojana (PMFBY)|
|Scheme Benefits||The loss that occurred due to the crop will compensate.|
|Objective||To encourage the youth more towards farming.|
Table of Contents
- What is Pradhan Mantri Fasal Bima Yojana (PMFBY)
- Pradhan Mantri Fasal Bima Yojana (PMFBY) 2022 Key Highlights
- Reasons for launching this scheme
- Companies that are implementing the Pradhan Mantri Fasal Bima Yojana (PMFBY)
- Other Schemes of the Government
- The objective of Pradhan Mantri Fasal Bima Yojana (PMFBY)
- Who is the beneficiary of this scheme
- Budget Allocation
- Challlemnges forr this scheme
- Key Features
- Eligibility Criteria to avail of this scheme
- List of Insurance Companies that support this PMFBY
- How the company will measure the destruction that occurs in the field
- Contribution of the Central Government
What is Pradhan Mantri Fasal Bima Yojana (PMFBY)
Pradhan Mantri Fasal Bima Yojana (PMFBY) is a campaign that empowers farmers through crop insurance awareness and brings the insurance policy door to their doorstep. This initiative is very good as it provides the farms with relief from getting the crop damaged.
Initially, there was a scheme known as the National Agriculture Insurance Scheme which gets modified and then relaunched as Pradhan Mantri Fasal Bima Yojana in 2016 by the Ministry of Agriculture and Farmers Welfare and all the general insurance companies in India which are implementing this scheme.
Pradhan Mantri Fasal Bima Yojana (PMFBY) 2022 Key Highlights
|Portal||Pradhan Mantri Fasal Bima Yojana (PMFBY)|
|Launched by||Mr Narendra Modi|
|Objective||To encourage the farmers and youth more towards farming.|
|Benefits||The loss that happened to the farmer due to a damaged crop will compensate.|
|Beneficiary||Farmers will get financial support.|
|Official Website||Click Here|
Reasons for launching this scheme
There is always a certain reason why a scheme gets launched and to solve that problem the scheme remains continues till it gets solved.
- Lack of Awareness
As per recent data, only 19% of the farmer are aware of the schemes which are launched in India and this percentage is very low. So to increase awareness this scheme regarding insurance for farming is launched.
- Outdated machinery
Before launching this scheme already two big schemes were running for providing insurance policies to the farmers but their methods of measuring the loss that occurred in the field are becomes very outdated so this scheme is launched with modern infrastructure.
- Lack of financial Penetration
The penetration of financial policy is very low among the farmers of India so major don’t know about where to claim insurance when their crops get damaged. So this is also the problem due to which the government has launched this scheme.
- Delay in the settlement
Due to the old infrastructure and outdated policies, the claim given by the insurance companies take 60-70 days due to which many farmers don’t get financial support for the next crop and hence they were not able to sow seeds for the next crops.
Companies that are implementing the Pradhan Mantri Fasal Bima Yojana (PMFBY)
The scheme must be implemented by the multi-agencies that provide insurance under the Department of Agriculture Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare, Government of India and other financial institutions like private banks, government banks, regional rural banks, cooperative band and others.
Other Schemes of the Government
The objective of Pradhan Mantri Fasal Bima Yojana (PMFBY)
- To provide the Sustainable Production
One of the major aims of this scheme provides the sustainable production as there are many times when the time, efforts and money of the farmer et ruined due to any reason but this scheme still provides help to the farmers so that they continue doing faring rather than stop doing it as in the case of youth who very fastly get demotivates form this.
- To provide the financial support
This scheme also aims to provide financial support to the farmers in the case when the crops get ruined or destroy due to any reason.
- Stabilising the Income of the Farmer
After the loss due to the damage to the crop, all the invested money in the crop by the farmer gets wasted so under this scheme government decided to give income to the farmers for the continuance of farming.
- Encouraging the farmer to adopt the innovative and modern techniques used in agriculture so that the production of the crop get increases with less effort.
- Enduring the creditworthiness of the farmer so that agriculture will continue by those farmers.
Who is the beneficiary of this scheme
All the farmers whether they are sharecroppers or tenant farmers growing notified crops in the notified area during the season who have an insurable interest in the crop are eligible. So when the crop will get damaged then they will get insurance from the company.
Note: Initially, only loanee farmers are eligible to get an insurance claim. But in 2020 the 2.0 version of Pradhan Mantri Fasal Bimaa yojana was launched with certain modifications under which now all the voluntary farmers are included also.
The budget of 15,500 crores is launched for the 2022-23 financial year. Approx 75%-80% subsidy for the farmers in the insurance premium.
Challlemnges forr this scheme
- Currently, coverage stands at 23% government. Aim 50%, lack of awareness needed to be tackled.
- The crop insurance scheme sector is marred by many frauds which need to be taken
- Cente’s and States’ financial liability is estimated to go up.
- As the compensation of the insurance is directly given to the farmer so there is a need to be a proper establishment of financial infrastructure.
- It is a centrally sponsored scheme so both the state and centre government will provide adequate funding for the crop.
- Over the next 5 years, 145 Million hectares of agricultural land will be covered.
3. Uniform Premium
Under this feature, a very small amount is to be paid by the farmer and the rest will be paid mutually by the Central and State Governments.
- For Kharif Crop only 2% will be paid by the farmers and the rest 98% by the government.
- For Rabi Crop only 1.5% will be paid by the farmer and the rest 98.5% by the government.
- For commercial crops and horticulture crops, 5% will be paid by the farmer and the rest by the Indian government.
Commercial Crops: Those crops which are mainly grown for selling purposes, not for personal purposes. Crops like rubber, tea, chilly, coriander, etc.
Horticulture: It is a practice under which season crops are grown by making artificial weather conditions in a fixed area. Examples like flowers, and vegetables.
States will have to set up their own insurance company to implement the scheme.
Eligibility Criteria to avail of this scheme
Once your crop gets completely ready to cut but it doesn’t mean that now it becomes is danger till it is sold to the market. So there are certain conditions under which you can avail of the benefit of this scheme if your completely grown crop gets damaged.
- Before harvesting there something misshapen occur that destroyed your whole crop then you become eligible for this scheme.
- Let you completely cut down your crop and now you are ready to sell it but in two to three days something misfortune occurs that completely ruins your crop. Then you become eligible for this scheme within 14 days you can avail of this Bima Yojana.
- When the farmer can’t sow hee seed in time due to any climatic or other reason then still he can avail of this scheme and 25% of the sum will be insured.
- Also if your completely grown crop stands in the field is attacked by certain animals that destroy your crop then in that case also you can avail the benefit of this scheme.
List of Insurance Companies that support this PMFBY
There are certain companies that support Pradhan Mantri Fasal Bima Yojana to provide the insurance claim near your area:-
- Agriculture Insurance Company
- Bajaj Allianz General Insurance Co. Ltd.
- Bharti Axa General Insurance Company Ltd.
- Cholamandalam MS General Insurance Company Ltd.
- Future Generali India Insurance Co. Ltd.
- HDFC Ergo General Insurance Co. Ltd.
- ICICI Lombard General Insurance Co. Ltd.
- IIFCO Tokio General Insurance Co. Ltd.
- National Insurance Company Ltd.
- New India Assurance Company
- Oriental Insurance
- Reliance General Insurance Co. Ltd.
- Royal Sundaram General Insurance Co. Ltd.
- SBI General Insurance
- Shriram General Insurance Co. Ltd.
- Tata AIG General Insurance Co. Ltd.
- United India Insurance Co.
- Universal Sompo General Insurance Company
How the company will measure the destruction that occurs in the field
If your crop gets destroyed due to any misfortune and if you are willing to know how the company that is giving insurance claim to you will measure the destruction which occurs in the field due to any misfortune and on what basis they will give my money. Well the answer is very simple and clear, the insurance company uses remote sensing technology, smartphones and drones to quickly analyze the field and the farmer can get the insurance claim as soon as possible so that he can prepare for the next coming drop.
Contribution of the Central Government
30% of the funding is given by the central government to the unirrigated area as the government also runs Pradhan Mantri Krishi Sinchai Yojana.
25% of the funding is given to the irrigated area (those areas having 50% or more irrigated area are considered irrigated areas.)
In the Norrth-Eastern states, 90% of funding is given by the central government.
Fact: From 2016-2021 more than 5.5 Crores farmers applied for this scheme every year and around 21,000 crore premium has been collected till now.
I hope after this article you will get a lot of information regarding the Pradhan Mantri Fasal Bima Yojana and maybe your all queries also get solved after reading this scheme but I just want to ask you if you still have any queries then please don’t hesitate to ask in the comment box which is specially designed for you as your queries are very important to all of us and also for the upcoming reader.