Pradhan Mantri Fasal Bima Yojana is the replacement of existing 2 schemes National Agriculture Insurance Scheme as well as modified NAIS. In this new scheme previous capping is removed on premium so that farmers get full sum insured. Also all multiple localized risk and post harvest losses are taken in to account to ensure that no farmer is alone in time of distress. Farmer’s contribution to the premium is reduced significantly. And this time government is giving the facility to use simple and smart technology through phones and remote sensing for quick estimation and early settlement of claims.
If you see at a larger picture the overall objective of Pradhan Mantri Fasal Bima Yojana is to minimise the premium amount and maximised the insurance for farmer’s welfare.
| Pradhan Mantri Fasal Bima Yojana Quick Fact | |
| Scheme Applicable in | All union territories and states |
| Who are eligible | Tenant, sharecropper, and SAO Loan farmer |
| Crops | Kharif and Rabi Crop |
| Premium Rate | 1.5% to 3.5% SI/Actuarial rate of less |
| Risk Coverage on | Natural Disaster and Pest Attack |
| Sum of coverage | Depends on premium |
| Duration of the scheme | 3 Years |
The Farmer’s Part of premium under this scheme
| For Kharif crops | For Rabi crops | For annual commercial & horticultural crops |
| premium is 2% of sum assured | premium is 1.5% of the sum assured | premium is 5% of the sum assured |
From where farmer’s can avail this scheme
Both Private and public sectors Insurance companies can provide Fasal Bima. There are various insurers who are authorised to provide fasal bima few of them are listed below
- Agricultural Insurance Company of India
- SBI General Insurance
- HDFC-ERGO General Insurance
- ICICI-Lombard General Insurance
- IFFCO-Tokio General Insurance
Key Highlights of Pradhan Mantri Fasal Bima Yojana
- Premium rate to be paid by farmers are very low and balance premium amount will be paid by the government of India to provide full insured amount to farmers against crop loss on account of natural calamities
- Capping on premium rates is removed, also the claim made against the total sum assured amount will be paid without any deduction.
- Service tax exemption for all the services involve in the implementation of this scheme.
Crop Loss cover under this Scheme
Apart from yield loss, the new scheme will cover post-harvest losses also. It will also provide farm level assessment for localised calamities including hailstorms, unseasonal rains, landslides and inundation.
