The new scheme – called Pradhan Mantri Fasal Bima Yojana (PM Crop Insurance Scheme) – will bring down the premium paid by farmers at a maximum of 2 % for foodgrains and oilseeds, and a maximum of 5% for horticulture and annual commercial crops.
The rest will be paid by the state and the central government, equally
The current premium rates stand at 4 to 15 % to insure crops
The scheme, called by PM Modi as his government’s Lohri, Pongal, Bihu gift to farmers, will eventually replace the existing farm insurances which have not even covered one-fourth of the crop area
The new scheme will cover yield loss of standing crops, prevented sowing/planting risk, post harvest losses and localised risks, including hailstorms, unseasonal rains, landslides and inundation – addressing a long-standing demand of farmers.
To settle claims, it will use smartphones, remote-sensing data and even drones to assess the crop damage, as against the old method of relying on yield data, which is often delayed.