Insurance Coverage Under Fasal Bima Yojana
The Central government has launched a new insurance scheme named Pradhan Mantri Fasal Bima Yojana for the farmers in India. The PMFY will replace the existing two insurance policies for the farmers and it will be implemented in every State from April 1st, 2016. The main objective of the scheme will be to provide the farmers with an insurance coverage and financial support when the crops fail due to any natural calamity or pests.
Insurance coverage under the Yojana
- The farmers, including sharecroppers and tenant farmers will be eligible for this insurance scheme.
- Even the non-loanee farmers will be eligible for the insurance coverage, by submitting necessary documents relating to land, like the State Records of Right, Land possession certificate, etc.
- All the farmers who are availing Seasonal Agricultural Operations Loans from the banks will be covered by this insurance, the others will be considered from time to time.
Below listed table explains the basic facts for Pradhan Mantri Fasal Bima Yojana (PMFBY)
|S.No||Facts about Pradhan Mantri Fasal Bima Yojana (PMFBY)||Detailed Information|
|1||What is PMFBY?||Is the new modified Crop Insurance launched by Central Government and it will be administered under the Ministry of Agriculture and Farmer’s Welfare.|
|2||Reason for launching PMFBY?||The reason behind the launch of PMFBY is to provide insurance coverage for crops in case of failure, to stabiles the incomes of farmers which make them to stay in agricultural field and to encourage farmers to do investments in agricultural field.|
|3||Important Features of PMFBY||Under this scheme farmers are required to pay uniformed lower premium and balance will be paid by government. Meanwhile, insurance agency will provide full insured amount in case of crop loss.|
|4||How much budget allotted by central government for this scheme?||For current budget 2016-2017 whooping amount of Rs.5,550 cores are allotted for PMFBY|
The risks to be covered
Under this scheme all the yield losses of the standing crops will be covered which may be caused due to fire, storm, flood, drought, diseases, etc. The farmers who are not able to plant the insured crops due to certain weather conditions will also be considered under the scheme. The coverage for the post-harvest losses under the scheme will be available for a period of 14 days from the time they are kept for drying on the field.
For the Loanee farmers, the sum limit that would be insured would be equal to the scale of Finance for that particular crop, fixed by the District Level Technical Committee. The amount may increase up to the value of the threshold yield of the insured crop if the farmer wants.
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