PM Fasal Bima Yojana – The New Crop Insurance Scheme

Pradhan Mantri Fasal Bima Yojana is the brand new one-of-a-kind crop insurance scheme recently launched by the Modi Govt. Union Home Minister, Mr. Rajnath Singh has announced this scheme in the presence of Mr. M. Venkaiah Naidu, Union Minister of Parliamentary Affairs and Mr. Radha Mohan Singh, Union Minister of Agriculture and Farmers’ Welfare.

As per the words of Mr. Singh, “Pradhan Mantri Fasal Bima Yojana will offer more insurance with less premium, and purchasing capacity of farmers will rise”.

A huge portion of rural Indians depends mostly on agriculture. Many a times they have to face heavy losses due to natural calamities and other unavoidable circumstances like draught, floods, fire, pest attack etc. Sometimes there are poor production of crops in some regions. The Pradhan Mantri Fasal Bima Yojana aims to boost the India’s agriculture sector by strengthening their crop insurance scheme which will be administered by the Ministry of Agriculture and Farmers’ Welfare, Government of India.

Pradhan Mantri Fasal Bima Yojana

Pradhan Mantri Fasal Bima Yojana – Key Highlights

  1. The Pradhan Mantri Fasal Bima Yojna will replace all other earlier crop insurance schemes and integrate the benefits of all of them. So the earlier schemes such as the National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS) will no longer exist.
  2. The premium amount of PM Fasal Bima Yojana is 2% for Kharif crops and of 1.5% for Rabi crops. This insurance scheme covers most of the food and oil crops cultivated in India. For commercial or horticultural crops (including cotton) the premium amount is kept at 5%.
  3. Advanced technologies like Smart phones, remote sensing technology and drones will be implemented for weather prediction to lower the crop damage due to natural calamities. This will also help to estimate losses, assess compensation and settle claims without much delay. Infrastructure will be made better to provide irrigation facilities to every farmland.
  4. Currently those farmers who have taken loans from the Govt. are only eligible for insurance of their crops. But as per the new scheme, all farmers whether he has taken a loan or not, is eligible for this new crop insurance scheme.
  5. The Fasal Bima Yojana scheme will be handled under a single insurance company, AIC. To make it an effective scheme, the entire insurance process, right from joining of farmers to disbursement of claim will be made electronically.
  6. The Pradhan Mantri Fasal Bima Yojna is the biggest ever contribution by government towards Crop Insurance. Total Rs 8,800 cr crop insurance scheme has been sanctioned under this scheme.

This Pradhan Mantri Fasal Bima Yojna will come into effect from the 2016 Kharif season. Please share your views about this new crop insurance scheme.

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1 Comment

  1. for this “Pradhan Mantri Fasal Bima Yojna” Scheme, former need to be register anywhere or how? how they identify if in case any disaster happen for that particular area how they will provide money to specific former..

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