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- The Union Cabinet has approved the Pradhan Mantri Fasal Bima Yojana, a path breaking scheme for farmers’ welfare.
- There will be a uniform premium of only 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops.
- The premium amount is capped at 5% for horticulture and annual commercial crops.
- The premium rates to be paid by farmers are very low and balance premium will be paid by the govt to provide full insured amount to the farmers against crop loss on account of natural calamities.
- There is no upper limit on govt subsidy, even if balance premium is 90%, it will be borne by the govt.
- The govt liability on premium subsidy would be shared by the Central and State governments on a 50:50 basis.
- Smart phones will be used to capture and upload data of crop cutting to reduce the delays in claim payment to farmers.
- The govt. expects the scheme to help increase the insurance coverage to 50% from the existing level of about 25-27% of crop area.