Context
With the Pradhan Mantri Fasal Bima Yojana (PMFBY) entering the seventh year of implementation in the upcoming Kharif season,the Ministry of Agriculture & Farmers Welfare will launch ‘Meri Policy Mere Hath’ which is a doorstep distribution drive to deliver crop insurance policies to farmers.
About ‘Meri Policy Mere Hath’
- As part of the celebrations, the Govt. has launched a doorstep distribution drive to deliver crop insurance policies to the farmers ‘Meri Policy Mere Hath’ in all implementing States.
- The campaign aims to ensure all farmers are well aware and equipped with all information on their policies, land records, the process of claim and grievance redressal under PMFBY.
About Pradhan Mantri Fasal Bima Yojana
- It was launched on 13th January 2016, in line with the One Nation-One Scheme theme, covering over 5.5 crore farmer applications year on year.
- As of February 4, 2022, over 36 million farmer applications have been insured under this scheme with over Rs 1,07,059 crores in claims paid.
- Since 85 percent of the farmers registered under this scheme are small and marginal farmers, the scheme has been able to provide financial support to the most vulnerable farmers.
- PMFBY was launched with the aim of providing financial assistance to all the farmers who have suffered crop damage or loss from natural disasters.
- This scheme replaced two schemes called National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS).
- The Scheme shall be implemented on an ‘Area Approach basis’ i.e., Defined Areas for each notified crop for widespread calamities.
- In the year 2020, PMFBY was modified to allow farmers to participate voluntarily. It has also been made easier for farmers to report crop damage within 72 hours after the occurrence of any event, either through the Crop Insurance App, the CSC Centre, or the nearest agriculture officer, with claim benefits sent automatically into eligible farmers’ bank accounts.
Objectives
- To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crops as a result of natural calamities, pests & diseases.
- To stabilise the income of farmers to ensure their continuance in farming.
- To encourage farmers to adopt innovative and modern agricultural practices.
- To ensure flow of credit to the agriculture sector.
Provisions
- There is no upper limit on Government subsidies. The premium rates to be paid by farmers are very low and the balance premium is paid by the Government to provide the full insured amount to the farmers.
- The prescribed premium is 2% to be paid by farmers for all Kharif crops and 1.5% for all rabi crops.
- In the case of annual commercial and horticultural crops, the premium is 5%.
- Premium cost over and above the farmer share is equally subsidised by the States and the Center.
- However, the Centre’s share is 90% of the premium subsidy for the Northeastern States to promote the uptake in the region.
