What is Pm Fasal Bima Yojana (PMFBY)?
Pm Fasal Bima Yojana is a flagship scheme launched by Government of India in 2016 on the theme of One-Nation-One-Scheme. It aims at supporting sustainable production in agriculture by providing financial support to farmers suffering crop loss/damage arising out of natural calamities and unfavorable weather vagaries.
The Scheme would be optional for all the farmers and cultivators desirous of availing insurance under PMFBY for any notified crop in any notified insurance unit may approach nearest bank branch/ PACS/ authorized channel partner/ insurance intermediary of insurance company within cut-off date, fill-up proposal form completely in prescribed format, submit form and deposit requisite premium to bank branch/ Insurance Intermediary / CSC along with necessary documentary evidence regarding his insurable interest in cultivating land/ crop (e.g. ownership/tenancy/ cultivation rights) proposed for insurance.
Benefits And Features Of PM Fasal Bima Yojana
- The farmers package policy will be underwritten by the General Insurance
Companies empanelled by DAC&FW under crop insurance programmes and/or
designated by this Department or through GIC Companies having tie-up with
concerned F.I./Banks for non-crop sections of the policy.
- The policy contains 7 Sections. Crop Insurance is mandatory. However, farmers
have to choose at least two other sections also to avail the applicable subsidy
under crop insurance section.
- In case of crop insurance, applicable Farmer’s share of premium ranging
between 1.5% to 5% based on their insured crops is payable by farmer & in case
Actuarial premium is more, the Government will provide subsidy equivalent to
the difference between Actuarial premium and premium paid by farmer. The crop
insurance is based on area approach whereas all other sections are on individual
- If the farmers already availed any insurance policy of similar nature and sum
insured not less than as mentioned in the policy than they would be exempted
from taking such section(s). However details of such policy would be provided in
their proposal form.
- The rates above are indicative & subject to the concurrence of the insurers.
- Sum Insured and premium rates are provisionally taken and may change
according to the risk(s).
- The detailed section wise tentative sum insured and applicable premium for the
farmer(s) are in the proposal forms enclosed at Annexure-I
- The above premium rates are without service tax which is likely to be exempted.
Which farmers are eligible for this scheme?
All Farmer having insurable interest can be covered under these scheme including sharecroppers and tenant farmers.It is mandatory for all the farmers to insist on insurance coverage as per provisions of the Scheme.
- Any change in crop plan should be brought to the notice of any nearest bank branch/ PACS/ authorized channel partner/ insurance intermediary of insurance company within one week of sowing.
- Insurance Proposals are accepted only upto a stipulated cut-off date as declared by the SLCCCI.
- The farmer desiring for coverage should open/operate an account in the branch of the designatedbank, and the details should be provided in the proposal form.
- The farmers should mention their land identification number in the Proposal and must provide documentary evidence with regard to possession of cultivable land. The cultivator must furnish area sown confirmation certificate.
- The farmer should ensure that he gets insurance coverage for a notified crop(s) cultivated/proposed to be cultivated, in a piece of land from a single source only. No duplicate or double Insurance is allowed and in any such cases farmer will not be eligible for coverage. The insurance company shall reserve the right to repudiate all such claims and not refund the premium as well in such cases.
- Company may also take legal action against such farmers.
Scheme also aims covering maximum farmers under SC/ ST/ and Women Farmers.
Which crop can be covered under this scheme?
- Food Crops (Cereals, Millets and Pulses)
- Annual Commercial /Annual Horticulture Crops
How is an implementation Agency selected for the PMFBY scheme?
Implementation Agency (IA) shall be done by the concerned State Government for implementation of the scheme in their respective State. Such selection of IA shall be done from amongst the designated / empaneled insurance companies.
The final selection of IA is from amongst the pre-qualified insurance companies, which shall be done based on the lowest weighted premium quoted by a pre-qualified company for all notified crops within the cluster of districts.
What is a Notified Area?
- Notified Area is the Unit of Insurance decided by the State Govt. for notifying a Crop during a season.
- The size of the Unit of Insurance shall depend on the area under cultivation within the unit. For major crops, the Unit of Insurance shall ordinarily be Village/Village Panchayat level and for minor crops may be at a higher level so that the requisite number of Crop Cutting Experiments (CCEs) could be conducted during the notified crop season.
- States may notify Village / Village Panchayat as insurance unit in case of minor crops too if they so desire.
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