The Pradhan Mantri Fasal Bima Yojana (PMFBY), launched in 2016, is a flagship crop insurance scheme aimed at providing financial protection to farmers against crop losses arising from natural calamities, pests, and diseases. It marks a significant shift from traditional ad-hoc insurance policies towards a comprehensive and subsidized scheme offering greater security to the farming community.
Key Features of PMFBY
- Subsidized Premiums: Farmers pay very low premiums, with the remaining cost shared by central and state governments.
- Wide Coverage: PMFBY covers a range of crops, including food crops, oilseeds, and commercial/horticultural crops.
- Risk Coverage: Provides insurance against pre-sowing and post-harvest losses due to natural calamities like droughts, floods, cyclones, hailstorms, landslides, pest infestation, etc.
- Uniform Premiums: The scheme offers standardized premium rates for farmers across districts within a state, making it more accessible and equitable.
- Technology Integration: Uses technology like remote sensing and smartphones for timely assessment of crop losses.
How PMFBY Works
- Enrollment: Farmers can enroll by contacting insurance companies, banks, or Common Service Centers (CSCs).
- Premium Calculation: Premiums are calculated based on actuarial risk, crop-wise sum insured, and area of cultivation.
- Loss Assessment: Insurance companies assess crop losses using a combination of technology and on-ground surveys.
- Claim Settlement: In case of eligible losses, farmers receive claim amounts directly into their bank accounts.
Impact of PMFBY
- Financial Security: PMFBY helps mitigate financial distress for farmers in case of crop failures, ensuring their ability to recover and continue farming.
- Increased Insurance Coverage: The scheme has led to a significant increase in the number of farmers insured.
- Investment Incentives: Reduced risk encourages farmers to invest in better inputs and technologies.
FAQs About PMFBY
- Which crops are insured under PMFBY? The list of crops varies across states. Farmers can check the list of notified crops in their area.
- How do farmers file a claim under PMFBY? Farmers need to inform their insurance company or bank within 72 hours of a qualifying loss event.
MCQs
The primary purpose of PMFBY is to provide:
A. Free seeds to farmers
B. Crop insurance
C. Subsidized agricultural loans
D. Irrigation facilities
Under PMFBY, who pays the major portion of the insurance premium?
A. Farmers
B. Insurance companies
C. Central and state governments
D. Banks