Pradhan Mantri Fasal Bima Yojana (PMFBY) - New Crop Insurance Scheme for Farmers
Salient features:
Under the scheme Pradhan Mantri Fasal Bima Yojana (PMFBY), the state will also provide a matching contribution while farmers will pay only only 2 per cent of the premium fixed by the insurance company for kharif foodgrains/ oilseeds crops and 1.5 per cent for rabi foodgrains/ oilseeds crops. The premium will be 5 per cent for horticultural and commercial crops for both seasons.
"This new crop insurance scheme will have lowest premium for farmers in the history of Independent India," said Home Minister Rajnath Singh.
There will be no provision of capping the premium rate so as to ensure farmers get a higher claim against the full sum insured. At least 25 per cent of the likely claim will be settled directly on farmers' bank account.
According to the government, farmers will get a higher claim for the full sum insured unlike the existing schemes such as National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS).
The new scheme will cover yield loss of standing crops, prevented sowing/ planting risk, post harvest losses and localised risks, including inundation.
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