Crop Insurance – PMFBY, etc.

PM Fasal Bima Yojana (PMFBY) completes 5 Years of operations


From UPSC perspective, the following things are important :

Prelims level: PMFBY

Mains level: Success of PMFBY

The Pradhan Mantri Fasal Bima Yojana (PMFBY) has completed 5 Years of successful operations.

It has become vital these days to remember and recognize every detail of government schemes.

What is PMFBY?

  • 5 years ago, on 13th January 2016, the GoI took a historic step towards strengthening risk coverage of crops for farmers of India and approved the flagship crop insurance scheme – the PMFBY.
  • The scheme was conceived as a milestone initiative to provide a comprehensive risk solution at the lowest uniform premium across the country for farmers.
  • Premium cost over and above the farmer share is equally subsidized by States and GoI.
  • However, GoI shares 90% of the premium subsidy for the North Eastern States to promote the uptake in the region.
  • The average sum insured per hectare has increased from ₹15,100 during the pre-PMFBY Schemes to ₹40,700 under PMFBY.

Coverage of Risks and Exclusions:

Following stages of the crop and risks leading to crop loss are covered under the scheme.

  • Prevented Sowing/ Planting Risk: The insured area is prevented from sowing/ planting due to deficit rainfall or adverse seasonal conditions
  • Standing Crop (Sowing to Harvesting): Comprehensive risk insurance is provided to cover yield losses due to non-preventable risks, viz. Drought, Dry spells, Flood, Inundation, Pests and Diseases, Landslides, Natural Fire and Lightening, Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane and Tornado.
  • Post-Harvest Losses: Coverage is available only up to a maximum period of two weeks from harvesting for those crops which are allowed to dry in cut and spread condition in the field after harvesting against specific perils of a cyclone and cyclonic rains and unseasonal rains.
  • Localized Calamities: Loss/ damage resulting from the occurrence of identified localized risks of hailstorm, landslide, and Inundation affecting isolated farms in the notified area.

Try this question from CSP 2020:

Q.Under the Kisan Credit Card Scheme, short-term credit support is given to farmers for which of the following purposes? (CSP 2020)

  1. Working capital for maintenance of farm assets
  2. Purchase of combine harvesters, tractors and mini trucks
  3. Consumption requirements of farm households
  4. Construction of family house and setting up of village cold storage facility
  5. Construction of family house and setting up of village cold storage facility

Select the correct answer using the code given below:

(a) 1,2 and 5 only

(b) 1,3 and 4 only

(c) 2,3,4 and 5 only

(d) 1, 2, 3 and 4

Progress till date

  • The Scheme covers over 5.5 crore farmer applications year on year.
  • Till date, claims worth Rs 90,000 crores have already been paid out under the Scheme.
  • Aadhar seeding has helped in speedy claim settlement directly into the farmer accounts.
  • Even during COVID lockdown period, nearly 70 lakh farmers benefitted and claims worth Rs. 8741.30 crores were transferred to the beneficiaries.

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3 years ago

thanks for sharing information for sarkariyojana with us.


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