Pradhan Mantri Fasal Bima Yojana (Prime Minister Crop Insurance Scheme)

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.

Under this scheme, in case of crop loss, a farmer will get an immediate payment of 25 per cent of the due compensation, and the money will go directly to his bank account.