Farmers in India face numerous challenges, with unpredictable weather patterns being a major concern. Crop damage due to natural calamities such as floods, droughts, or pests can result in severe financial losses for farmers. In order to mitigate these risks and provide financial support to farmers in the event of crop damage, the Indian government introduced the Pradhan Mantri Fasal Bima Yojana (PMFBY) in 2016.
Understanding PMFBY
The Pradhan Mantri Fasal Bima Yojana is a crop insurance scheme that aims to provide affordable insurance coverage to farmers and protect them against yield losses. The scheme covers all food crops (cereals, millets, and pulses), oilseeds, and annual commercial/horticultural crops. It not only provides insurance coverage for yield losses but also covers prevented sowing and post-harvest losses.
Key Features of PMFBY
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Premium Rates: Under the PMFBY, farmers have to pay a minimal premium ranging from 1.5% to 5% of the sum insured, depending on the crop type. The remaining premium amount is shared equally by the central and state governments.
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Sum Insured: The scheme provides coverage for the sum insured at the level of the individual farm, which is the estimated value of the crop that a farmer would get in case of crop damage.
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Coverage of Risks: PMFBY covers pre-sowing losses, post-harvest losses, and localized risks such as inundation, landslides, and cyclones.
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Timely Payouts: In case of crop damage, the insurance companies are required to settle the claims within two months of the crop cutting experiments.
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Technology Integration: The scheme leverages technology for quick assessment and settlements of claims, including the use of smartphones and remote sensing.
Enrollment Process
Farmers can enroll in the PMFBY scheme through a common online portal or at the nearest Common Service Centre (CSC). They need to provide details about the crops sown, the area under cultivation, and other necessary information. The enrollment period usually coincides with the Kharif and Rabi seasons.
Claim Settlement Process
In case of crop damage, farmers need to inform the insurance company within 72 hours of the occurrence of the event. The insurance company then conducts crop cutting experiments to assess the extent of damage and calculate the compensation amount. Once the assessment is completed, the claim amount is deposited directly into the farmer’s bank account.
Benefits of PMFBY
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Financial Security: The PMFBY provides financial security to farmers by compensating them for crop losses due to natural calamities.
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Risk Mitigation: It helps in mitigating the risks associated with farming and ensures sustainable agricultural practices.
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Encouragement for Cultivation: The scheme encourages farmers to adopt modern agricultural practices and cultivate a variety of crops.
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Affordable Premiums: The low premium rates make the scheme accessible to small and marginal farmers as well.
Frequently Asked Questions (FAQs)
- Who is eligible to enroll in the PMFBY scheme?
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All farmers growing the notified crops in the notified areas are eligible to enroll, including sharecroppers, tenant farmers, and crop growers.
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How is the sum insured determined under PMFBY?
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The sum insured is calculated based on the scale of finance provided by banks for each crop and the insured area.
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What is the claim settlement ratio under the PMFBY scheme?
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The claim settlement ratio is the ratio of the total claims settled to the total claims reported. It is monitored regularly, and insurance companies strive to maintain a high settlement ratio.
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Can farmers insure their crops for multiple seasons under PMFBY?
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Yes, farmers can insure their crops for both the Kharif and Rabi seasons under the PMFBY scheme.
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Is there a grace period for premium payment under PMFBY?
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Yes, farmers are given a grace period of 15 days for premium payment beyond the due date.
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Can farmers get assistance in enrolling for PMFBY?
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Yes, farmers can visit the nearest Common Service Centre (CSC) for assistance in enrolling for the PMFBY scheme.
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Are losses due to pest attacks covered under PMFBY?
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Yes, losses due to pest attacks are covered under the PMFBY scheme, provided they are widespread and beyond a specified threshold level.
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Is there a provision for on-the-spot enrollment in PMFBY?
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Yes, there is a provision for on-the-spot enrollment of farmers at the nearest CSC during the enrollment period.
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How can farmers track the status of their insurance claim under PMFBY?
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Farmers can track the status of their insurance claim online through the PMFBY portal using their policy number.
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Are horticultural crops covered under the PMFBY scheme?
- Yes, annual commercial/horticultural crops are covered under the PMFBY scheme, providing insurance protection to farmers growing these crops.
In conclusion, the Pradhan Mantri Fasal Bima Yojana is a vital initiative by the Indian government to safeguard the interests of farmers and enhance the resilience of the agriculture sector. By providing comprehensive insurance coverage and timely payouts, the scheme not only protects farmers from financial uncertainties but also promotes sustainable agricultural practices. Farmers are encouraged to avail the benefits of the PMFBY scheme to secure their livelihoods and contribute to the growth of the agricultural economy.