The Pradhan Mantri Fasal Bima Yojana (PMFBY)

The Pradhan Mantri Fasal Bima Yojana (PMFBY)

• In April, 2016, the government of India had launched Pradhan Mantri Fasal Bima Yojana (PMFBY) after rolling back the earlier insurance schemes viz. National Agriculture Insurance Scheme (NAIS), Weather-based Crop Insurance scheme and Modified National Agricultural Insurance Scheme (MNAIS). 
• Thus, at present, PMFBY is the only flagship scheme of the government for agricultural insurance in India.
• This crop insurance scheme will be administered under the Ministry of Agriculture and Farmers’ Welfare, Government of India.

Features of the scheme:

• The scheme provides  comprehensive risk coverage from pre-sowing to post harvest losses due to non-preventable natural risks 
• It envisages a uniform premium of only 2 per cent to be paid by farmers for Kharif crops, and 1.5 per cent for Rabi crops. The premium for annual commercial and horticultural crops will be 5 per cent.
• The remaining part of premium is shared by the Central and State Government on 50 : 50 basis. 
• There is no upper limit on Government subsidy. Even if balance premium is 90%, it will be borne by the Government.
• All the funds for the scheme come from the Krishi Kalyan Kosh.
• unit area of insurance has been lowered to village/village panchayat level for assessment of losses of major crops and to individual farm level
• Setting up of National Crop Insurance Portal for scheme administration that let the farmer enroll under the scheme directly and to track the entire process of his claim settlement. 
• The scheme covers localized calamities such as hailstorms, landslides etc; yield losses such as droughts, dry spells, pests, floods etc; and post-harvest losses against specific perils of unseasonal rains, cyclonic rains, cyclones etc.
• However, this scheme excludes perils such as war & kindred perils, nuclear risks, riots, malicious damage, theft, act of enmity, grazed and/or destroyed by domestic and/or wild animals
• It also envisages adoption of technology ( remote sensing, smart phones and drones) for integration of all stakeholders on the National Crop Insurance Portal for scheme administration and in capturing crop loss assessment etc.