Pradhan Mantri Fasal Bima Yojana (PMFBY):
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The Pradhan Mantri Fasal Bima Yojana (Prime Minister’s Crop Insurance Scheme) was launched in 2016.
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The scheme has replaced the two schemes National Agricultural Insurance Scheme(NAIS) as well as the Modified NAIS.
Objective :
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To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests & diseases.
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To stabilise the income of farmers to ensure their continuance in farming.
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To encourage farmers to adopt innovative and modern agricultural practices.
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To ensure flow of credit to the agriculture sector.
Features :
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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.
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In case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%.
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The premium rates to be paid by farmers are very low and balance premium will be paid by the Government to provide full insured amount to the farmers against crop loss on account of natural calamities.
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There is no upper limit on Government subsidy. Even if balance premium is 90%, it will be borne by the Government.
Risks Covered under the scheme :
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Yield Losses (standing crops, on notified area basis). Comprehensive risk insurance is provided to cover yield losses due to non-preventable risks, such as Natural Fire and Lightning, Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado. Risks due to Flood, Inundation and Landslide, Drought, Dry spells, Pests/ Diseases also will be covered.
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In cases where the majority of the insured farmers of a notified area, having intent to sow/plant and incurred expenditure for the purpose, are prevented from sowing/planting the insured crop due to adverse weather conditions, shall be eligible for indemnity claims upto a maximum of 25 per cent of the sum-insured.
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In post-harvest losses, coverage will be available up to a maximum period of 14 days from harvesting for those crops which are kept in “cut & spread” condition to dry in the field.
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For certain localized problems, Loss / damage resulting from occurrence of identified localized risks like hailstorm, landslide, and Inundation affecting isolated farms in the notified area would also be covered.
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