23 Jul In 5 years, PM Fasal Bima brought in 40,000 crore for insurance businesses.
In 5 years, PM Fasal Bima brought in 40,000 crore for insurance businesses – Today Current Affairs
Since its launch in 2016–17, the Center’s flagship crop insurance programme has generated approximately Rs 40,000 crore for insurance companies.
Today Current Affairs
PMFBY: Pradhan Mantri Fasal Bima Yojana
- Launched in 2016, the PMFBY programme is an insurance service for farmers’ yields that is run by the Ministry of Agriculture & Farmers Welfare.
- The One Nation One Scheme ethos is adhered to by the new crop insurance programme.
- The National Agricultural Insurance Scheme (NAIS) and the Modified NAIS were superseded by the PMFBY.
- It offers all of the advantages of earlier plans while doing away with all of their drawbacks. The Hindu Analysis
- Goals: To offer farmers insurance protection and financial assistance in the event that any of the registered crops fail due to natural disasters, pests, or illnesses.
- Help stabilize farmers’ incomes and ensure their ability to continue farming.
- To motivate farmers to implement cutting-edge and contemporary agricultural practices.
- To make sure that financing is flowing to the agricultural sector.
Important details: Farmers will be required to pay a consistent premium of just 2 percent for all Kharif crops and 1.5 percent for all Rabi crops (winter sown) and they are required to pay a premium of 5% for yearly commercial and horticultural crops.
Farmers must pay very modest premium rates, and the government will cover the remainder (to be shared equally by central and state governments).
The goal is to give farmers a fully insured sum to protect them against crop loss due to natural disasters. The Hindu Analysis
The “Area Approach” will be used to implement the Scheme, with Defined Areas for each listed crop in the case of widespread catastrophes
For important crops, the insurance unit must be at the village/village panchayat level, while for other crops, it may be at a size above village/village panchayat level. The Hindu Analysis
All covered farmers within a unit of insurance—which will be referred to as a “Notified Area” for a crop—are thought to have comparable risk exposures.
The amount of government aid is unlimited. This means that the government will be responsible for paying the remainder of the premium, even if it is 90%.
The usage of technology will be strongly promoted. Smartphones will be used, for instance, to record and upload information about crop cutting in order to shorten the time it takes to pay farmers for their claims. The Hindu Analysis
The number of crop cutting tests will be decreased by the use of remote sensing.
All services engaged in the implementation of the scheme will not be subject to Service Tax.
Beneficiaries (farmers to be covered): All farmers who have an insurable interest in notified crops during the season and are growing those crops in notified areas are eligible.
The programme has been made voluntary for all farmers starting in Kharif 2020 in response to farmer demand. The Hindu Analysis
For farmers who have a Crop Loan account or a Kisan Credit Card (KCC) account, for example, enrollment used to be required.
Risks included in the plan: Comprehensive risk insurance is offered to cover yield losses brought on by unavoidable risks including natural fire and lightning, storm, hailstorm, cyclone, typhoon, tempest, hurricane, and tornado.
Risks related to drought, dry spells, pests, diseases, flood, inundation, and landslides will also be covered. The Hindu Analysis
Indemnity claims up to a maximum of 25% of the sum-covered may be made in situations where the majority of insured farmers in a notified region have the intention to sow or plant and have spent money for the purpose, but are unable to do so because of unfavourable weather circumstances.
For crops retained in “cut & spread” condition to dry in the field after harvest, covering will be provided up to a maximum of 14 days after harvest.
Identified localised hazards like hailstorm, landslide, and inundation that affect isolated farms in the notified region would also be covered in terms of loss and damage.
Evaluation of the plan : The Hindu Analysis
In its first year of operation (2016–17), when it covered 30% of Gross Cropped Area, the programme was well appreciated by farmers (GCA).
GCA dropped to 25% in 2019-2020 and to 27% in 2018-19, indicating a decline in popularity. The Hindu Analysis
A few states, including Bihar, West Bengal, Gujarat, Jharkhand, Andhra Pradesh (which recently re-entered), and Telangana, chose not to participate in the scheme during its various implementation years, while Punjab never joined it.
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