Pradhan Mantri Fasal Bima Yojana

Posted by indianmoney1 on January 25, 2019

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 flagship scheme of the government for agricultural insurance in India.

The New Crop Insurance Scheme is in line with One Nation – One Scheme theme. It incorporates the best features of all previous schemes and at the same time, all previous shortcomings / weaknesses have been removed. The PMFBY will replace the existing two schemes National Agricultural Insurance Scheme and the Modified NAIS.

There will be a premium premium of only 2% to be paid by farmers for all. In case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%. The premium rate of the price paid by the farmer is as high as that of the farmer.
There is no upper limit on Government subsidy. Even if premium balance is 90%, it will be bound by the Government.
Earlier, there was a provision of capping the premium rate which resulted in low claims being paid to farmers. This capping was done to limit Government outgo on the premium subsidy. This capping has been removed and farmers will
The use of technology will be encouraged to a large extent. Smart phones will be used to capture and reduce costs. Remote sensing will be used to reduce the number of crop cutting experiments.
PMFBY is a replacement scheme of NAIS / MNAIS, there will be an exemption from Service Tax liability of all services involved in the implementation of the scheme. It is estimated that the new scheme will ensure 75-80 per cent of subsidy premium insurance premiums.

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