Comprehensive Coverage:
The Pradhan Mantri Fasal Bima Yojana (PMFBY) offers comprehensive insurance protection against crop failure, helping to stabilize farmers' incomes and encouraging them to adopt new and innovative agricultural practices.
Premium Cost Sharing:
The premium costs for this insurance are split equally between the central and state governments, with farmers paying only a portion of the total premium amount.
Mandatory for Loan-Backed Farmers:
The scheme is mandatory for farmers who have taken crop loans or hold Kisan Credit Card (KCC) accounts for designated crops. For other farmers who have a vested interest in the insured crops, participation is voluntary.
Indemnity Levels:
There are three indemnity levels offered—70%, 80%, and 90%—to correspond with the varying levels of risk for different crops and regions.
Coverage for Yield Losses:
PMFBY covers yield losses caused by:
Natural fire and lightning
Extreme weather events like storms, hailstorms, cyclones, typhoons, tempests, hurricanes, and tornados
Floods, inundation, and landslides
Droughts and dry spells
Pests and diseases
Post-harvest losses and damage from localized risks such as hailstorms, landslides, and inundation affecting individual farms in the designated areas
Low Premium Rates:
Farmers benefit from low premium rates under the PMFBY scheme:
Up to 1.5% of the insured amount for Rabi crops
Up to 2% for Kharif crops, including food grains, pulses, and oilseeds
Up to 5% for annual horticulture and commercial crops
This scheme covers all stages of the crop cycle, including specific post-harvest risks.
*The information in this document has been adapted from articles and posters available on https://www.rbi.org.in/FinancialEducation/Home.aspx The original articles can be accessed directly for more comprehensive insights.
Comments