The Pradhan Mantri Fasal Bima Yojana (PMFBY) aims to stabilise farmers' incomes so they can continue farming, to encourage farmers to adopt innovative and modern agricultural practices, and to guarantee the flow of credit to the agricultural sector if any of the notified crops fail due to natural disasters, pests, or diseases.
The insurance coverage under this plan is restricted to specific crops and agricultural risks associated with crop yield. Food crops, oilseeds, annual commercial crops, and annual horticultural crops are all on the list of notified crops. Additionally, it addresses every phase of the crop production cycle.
Here are some key facts related to the PMFBY scheme launched by the government of India:
Data has been sourced from the official website of PIB (Press Informational Bureau)
Many benefits fall under this crop insurance scheme. Let us take a look at them:
- Comprehensive insurance protection against crop loss caused by unavoidable natural risks helps stabilise farmers' income and encourages the adoption of new techniques.
- PMFBY offers uniform seasonality discipline and sum insured to farmers who are on loans and those who are not.
- To make it easier for farmers to make claims against the total sum insured without any reduction, the provision of premium capping that caused the sum insured to be reduced is removed.
The new programme automatically enrols loanee-farmers who have Kisan Credit Cards, also known as Kisan Credit Card holders, by requiring banks to deduct the premium and send it to the insurance companies. All other farmers can go to their local branch of a bank or an agent of the implementing agency to enrol in the programme by paying their share of the premium.
This crop insurance scheme is the one to be utilised by farmers since it has several benefits that can help farmers grow. You can easily log in to the PMFBY portal by going to the official website.
Insurance coverage under Fasal Bima Yojana is restricted to some crops and agricultural risks associated with crop yield. It is important to note that this insurance is not available for every kind of risk. Given below are a few cases where farmers' risk will be insured.
- Profit Losses For yield losses resulting from non-preventable risks like natural fire and lightning, storms, hailstorms, cyclones, and typhoons are covered.
- A majority of the insured farmers in a notified area who have made financial preparations to plant but are prevented from doing so by unfavourable weather conditions will be eligible for indemnity claims up to 25% of the insured amount.
- Loss or damage resulting from specific local risks, such as hail, landslides, and flooding that affect isolated farms in the notified area, would also be covered for some localised problems.
Following is a list of the 18 insurance companies providing PMFBY scheme that safeguards the interest of farmers:
- Agriculture Insurance Company
- IIFCO Tokio General Insurance Co. Ltd.
- Bajaj Allianz General Insurance Co. Ltd.
- ICICI Lombard General Insurance Co. Ltd.
- Bharti Axa General Insurance Company Ltd.
- New India Assurance Company Oriental Insurance
- Cholamandalam MS General Insurance Company Ltd.
- Future Generali India Insurance Co. Ltd.
- SBI General Insurance Shriram General Insurance Co. Ltd.
- Royal Sundaram General Insurance Co. Ltd.
- National Insurance Company Ltd.
- HDFC Ergo General Insurance Co. Ltd.
- Reliance General Insurance Co. Ltd.
- Tata AIG General Insurance Co. Ltd.
- United India Insurance Co.
- Universal Sompo General Insurance Company
Farmers are the driving force of the Indian economy and it is important to keep their interests secured. On the occasion of Kisan Diwas, we wanted to share insight into how the government of India ensures that farmers are protected. We wish all the farmers a happy Kisan diwas!