Pradhan Mantri Fasal Bima Yojana (PMFBY) is on way to become world’s largest crop insurance scheme, claimed Union Ministry of Agriculture and Farmers Welfare on Thursday.
The ministry reiterated that under Pradhan Mantri Fasal Bima Yojana (PMFBY), Government is committed to provide comprehensive insurance coverage against crop loss on account of non-preventable natural risks.
Pradhan Mantri Fasal Bima Yojana (PMFBY) is the third largest crop insurance scheme in the World and tipped to become number one in coming years as around 5 crore farmer applications are being received under the scheme every year.
The acceptability of the scheme has increased amongst the farmers in the last 6 years, with share of non-loanee farmers, marginalized farmers and small farmers increasing by 282% since the initiation of the scheme in 2016.
In the last 6 years, Rs 25,186 crores have been paid by farmers as the premium, wherein Rs. 1,25,662 crores have been paid to the farmers against their claims as on 31st October, 2022 with Central and State Governments bearing most of the premium under the scheme.
Premium Rates under PMFBY
Pradhan Mantri Fasal Bima Yojana scheme is being implemented on actuarial and bidded premium rates.
However, farmers including small farmers have to pay a premium of 2% for Kharif, 1.5% for Rabi and oilseed crops and 5% for commercial and horticultural crops respectively.
Premium over and above these limits is shared by the Central and State Governments on 50: 50 basis except in North Eastern Region where it is 90: 10 from Kharif 2020.
The scheme operates on the insurance principles therefore the extent of area insured, extent of damage occurred, sum insured are the important determinants in arriving at the claim amount.
Role of Digitisation and Technology in PMFBY
A top official of the Ministry said that Digitisation and Technology are playing a significant role in scaling up the reach and operations of PMFBY with precision agriculture.
Union of agri-tech and rural insurance can be the magic formula for financial inclusion, enabling a trust in the scheme.
Recently introduced Weather Information and Network Data Systems (WINDS), Yield Estimation System based on Technology (YES-Tech), Collection of Real Time Observations and Photographs of Crops (CROPIC) are some of the key steps taken under the scheme to bring in more efficiency and transparency.
To address farmer grievances in real time, an integrated help line system is under beta testing in Chhattisgarh.