Pradhan Mantri Fasal Bima Yojana (PMFBY)

Why in News?

Transparent claim payment was made to farmers through DBT system under the scheme.

Current Status

Introduction

Ministry

Objective

To provide financial security to farmers for crop loss due to natural calamities, pests or diseases.

Key Features –

Eligibility – All farmers including sharecroppers and Assamese tenants producing notified crops in notified areas are eligible under the scheme.
Risk Coverage –
Natural calamities – flood, drought, cyclone hailstorm, landslide etc.
Pest and disease coverage.
Reimbursement of losses incurred within 14 days of harvesting.
Local calamities
Premium rates
2% for Kharif crops
5% for Rabi crops
Commercial/Horticultural crops→ 5%
The government provides full subsidy on premium to farmers of North-East, Jammu and Kashmir and Himachal Pradesh.
Remaining part of actuarial premium is borne jointly by the central and state Govts on 50 : 50 basis.
For North Eastern states and Himalayan states is shared in the ratio of 90 : 10.

Technological integration

Use of Satellite imagery and drone for estimating crop area, resolving yield disputes and assessing crop damage
Digi Claim – for accelerated and transparent settlement of Crop insurance claims.
Agri App enables uploading of data directly to National Crop Insurance Portal.
New technological innovations like YES-TECH, WINDS and CROPIC introduced.

Payments

PMFBY aims to settle claims within two months of harvesting, so that timely financial assistance can be given to farmers to avoid falling into debt trap.

Consider the following statements with reference to Pradhan Mantri Fasal Bima Yojana.

(A) Under the scheme, farmers will have to pay a flat premium of two per cent for any crop cultivated by them in any season of the year.

(B) This scheme covers post-harvest losses caused by cyclones and unseasonal rains.

Which of the above statements is correct?

(1) Only A (2) Both A and B

(3) Only B (4) Neither A nor B

Answer-(3)