PM Fasal Bima Yojana In JK
It cannot be denied that our country has faced one of the most disastrous circumstances when it saw the suicide of innumerable farmers recently. And till date the number of suicides has been increasing. According to the reports, the primary reason of suicides is, the farmers are not able to sustain their families due to the high expense of crop production and minimal profit. This leaves them with no other alternatives. They are not able to provide for their families. It is just impossible for us to understand the frustration, anger and sadness of a farmer, when he and his family opt for such a drastic step. To prevent this from happening any more, our PM has brought the Fasal Bima Yojana into action. This article is going to focus on all the details of Fasal Bima Yojana and how it will be beneficial for the farmers.
What is Fasal Bima Yojana?
The Fasal Bima Yojana is actually an insurance for the crops to prevent the crops from damage due to natural calamities. Apart from that the farmers will also be provided with financial support so that their profit margin is enhanced. The scheme shall be implemented throughout the country and it has started functioning right from that Kharif season of this year. The insurance scheme shall be collectively carried out by the center and state governments.
We are well aware of the fact that India is a land of the farmers. A major portion of Indian economy depends on agriculture. This is why the government is so much dedicated to help the farmers sustain their lives. And this insurance scheme will also help the yield of crops. If India is able to deal with the natural calamities and prevent the farmers, there are high chances that Indian economy will be stabilized. Another major issue that India has to deal is the over production of crops. This happens sometimes. And right after that the market demands become less. This is why the farmers do not get the minimal prices for the crops sold. Thus, they have to suffer huge losses.
What are the crops considered in the Fasal Bima Yojana?
The crops that will be considered for the Fasal Bima Yojana are the horticulture crops, Rabi Crops, commercial crops and Kharif Crops. All the crops will be available at different premium rates. The rest of premiums will be shared by the central and state government equally.
How will be the scheme implemented?
The scheme will be implemented according to an “Area Approach Basis”. This means, there will be certain areas notified for every crop. The notification for areas will be done according to the widespread calamities assuming that there will be insured farmers. This is also known as the defined area. After a certain period of time, this area will be Geo Fenced/Geo mapped that have a risk of disaster. For certain risk of local calamities or any other post harvest losses, the unit insurance loss assessment will be done by an insurance field officer. Every farmer will be assessed.
What makes this insurance scheme different from any other insurance schemes?
This is a modified scheme from the national Agriculture Insurance scheme. It is not mandatory for the farmers to follow this scheme. It is open to all the farmers, if they want they can take this scheme. And even for the loanee farmers, this scheme has been made optional. Now that leaves with no pressure among the farmers to take this scheme.
It has the lowest rate of premiums. In the previous insurance schemes, the government capped the coverage. This is why the farmers were not able to recover their loss, but a fraction of it.But with this new scheme, the government is offering full coverage for the losses and also an amount which you can pay through the premiums. Since there is no capping, the government will pay 90% of the total amount to cover up your losses.
This insurance scheme is going to cover for the local calamities too, which was not available in case of the previous insurance schemes. For instance the natural disasters like landslide, hailstorm, inundation, draught and such incidents were not covered previously.
What is the target?
According the reports, the scheme is going to bring more than 50% of the farmers within its wing in 2-3 years. A part of claims will be sent directly to the account of farmers. There won’t be any cap on the reduction of insured scheme. The technological advancement is tremendous for the enhancement of this scheme. To make the claims faster and easier, drones will be utilized. A quick drone survey is going to estimate the crop loss and fasten the process. Apart from this, there is also the usage of remote sensing and smartphones.
According to the government, there will be only one insurance company for the entire state. Mostly it is a private company, but also the national agricultural insurance companies will be approached for implementing it.
Which farmers will be covered in this scheme?
There is no limitation for the farmers, all those who have been notified during the season, and have the insurable interest in the crop are eligible for taking up this scheme. There are different types of coverages involved in this scheme. One is called the compulsory coverage. Now this coverage will be provided when the farmers have the possession of insurable interest on the notified crop. And this will be compulsory for the following types of farmers:
One is the loanee farmers, who have a Crop Loan account aka the KCC account, to whom the credit will be sanctioned or renewed. And this will be done for a particular crop season.
And there are other farmers to whom the government decides to offer coverage from time onwards. And if the government is able to offer coverage for the non loanee farmers too, then it will come as a huge relief for them. The condition that Indian farmers are facing right now is really horrible.
The other type of coverage is the voluntary coverage. This can be obtained by all the farmers who are not covered in above crop insurance. Even those who have obtained Crop KCC and whose credit limit is not renewed.
What are the risks covered under this scheme?
In case the farmers are not allowed to sow crops on a certain area because of the adverse weather conditions for a certain period of time, they shall be eligible for indemnity claims.
In case of the post harvest losses, the coverage will be available in a maximum period of 14 days from harvesting the crops. The coverage shall be provided for those crops that are kept in “cut and spread” condition to dry in the field.
For localized problems, the damages that are a result of natural disasters in nearby areas that affects isolated firms within the notified area shall also be covered.
The Unit of Insurance
The scheme shall be implemented according to the “area on approach basis”. There are certain areas for each notified crops. All the insured farmers will be notified for a certain area. There are risk of exposures, cost of production, considering the comparable farm income per hectare and crop loss due to operations of an insured peril.
How to apply online for the Fasal Bima Yojana?
To register for the Fasal Bima Yojana, you need to log into the official website of Fasal Bima Yojana. There is an application form; you have to fill up the details. The basic details include Name, complete address, district, state, etc.
The special efforts
There will be special efforts from the side of the government to ensure that the SC/ST and the women farmers are also included in the Fasal Bima. The budget allocation will be done according to the land holding.
.There is a difference between actual premium and the rate of insurance charges. That is called the normal premium subsidy, and it will be shared by the both the central and state government. But the state and government and the central government both have the option of offering additional subsidy above the stipulated budget. In simple terms, the additional subsidy will be solely dependent on the state or central government decisions.
What additional services can the government offer?
The government is capable of releasing 50% of the total estimated premium subsidy for the insurance companies at the start. The crop loans are a compulsory coverage and all the details will be backed up in the banks in records and registers. The non loanee cultivators will be serviced directly by designated agencies or any other authorized channel partners and insurance intermediaries.
Fasal Bima Yojana
|SL NO||Facts to know||Brief details|
|1.||Launch date||February 2016|
|2.||Premium rate for farmers||1.5% for the rabi crops
2% for Kharif crops
5% for the horticultural crops
|3.||Total target of crops in insurance||50%|
|4.||Estimated liability of central government||8800 crore|
|5.||Government subsidy||No upper limit, 90% to be precise|
|6.||Cutoff date||Same for both loanee and non loanee farmers|
|7.||Loaning period||For rabi crops-April to July
For Kharif crops- October to December
|8.||Cutoff date for receipt of proposal for loanee farmers||Within 7 days of declaration receipt|
|9.||Cutoff date for Voluntary farmers||Within 7 days of declaration receipt|
|10.||Uploading soft copy details||Within 15 days of cut-off date|
|11.||Approval of payments||Three weeks from receipt of data|