Fasal Bima Yojana:- The Indian government introduced the Pradhan Mantri Fasal Bima Yojana (PMFBY) as a crop insurance programme in 2016. The program’s goal is to give farmers financial support and insurance coverage in the event that their crops fail due to natural disasters. The programme replaces earlier crop insurance programmes that failed to adequately protect farmers with insurance.
The PMFBY’s goals are:
The following are the PMFBY’s primary goals:-
- To provide farmers a cost-effective crop insurance policy.
- To lessen the financial burden that crop failure would have on farmers.
- Help persuade farmers to use cutting-edge agricultural techniques.
- To give farmers prompt recompense in the case of crop failure.
The PMFBY’s features include:
The following are the main characteristics of the PMFBY:
- The programme offers farmers complete insurance protection against natural disasters like floods, droughts, cyclones, hailstorms, and insect assaults.
- The scheme’s premium rates are set at a relatively modest 1.5% of the total insured for crops grown in Kharif, 2% in Rabi, and 5% in horticulture. The federal and state governments cover the balance of the premium.
- The amount insured is set at the crop’s market value, and in the event of a loss, the farmer receives the crop’s market value.
Within two months after receiving the notification of the loss, the claims under the plan are resolved. - All farmers, including renters and sharecroppers, are covered by the programme.
- Farmers who have borrowed money from banks for agricultural reasons are required to participate in the programme.
Advantages of the PMFBY
For farmers, the PMFBY offers a number of advantages. The following are a few of the main advantages:
- In the event that their crops are destroyed by natural disasters, the programme offers farmers financial security.
- Because of the relatively cheap premium rates offered by the programme, small and marginal farmers may afford the insurance coverage.
- Farmers are guaranteed appropriate recompense for their losses since the amount insured under the system is fixed at the market value of the crops.
- The programme encourages farmers to use cutting-edge agricultural techniques that can boost crop yields and raise revenue.
- The programme ensures that disputes are resolved quickly, ensuring that farmers get their compensation quickly.
- The programme covers a wide spectrum of farmers by providing insurance coverage and is applicable to all farmers, including renters and sharecroppers.
Problems the PMFBY is facing
Although having good intentions, the PMFBY has encountered a number of difficulties throughout implementation. These are a few of the major obstacles:
- Delays in the settlement of claims have occasionally occurred, which has put farmers who have lost crops via agricultural losses in a difficult financial position.
- Limited coverage: The coverage offered by the programme is still somewhat minimal, despite the cheap premium prices. Many farmers are unaware of the programme, while others are unable to obtain insurance coverage because of administrative barriers.
- Lack of knowledge: Farmers are not well-informed about the PMFBY and its advantages. Many farmers are unaware of the specifics of the programme and how to apply for insurance coverage.
- Difficult application procedure: Many farmers struggle to appropriately complete out the application forms due to the scheme’s complicated application process. Due to this, few farmers are utilising their insurance coverage.
Conclusion
In conclusion, the Pradhan Mantri Fasal Bima Yojana (PMFBY) is an important project that the Indian government started to offer farmers financial support and insurance coverage in the event that their crops fail due to natural disasters. The program’s objectives are to encourage farmers to use cutting-edge agricultural techniques, lessen their financial burden in the event of crop failure, and give farmers prompt recompense. The programme has set modest premium rates and includes all farmers, including sharecroppers and renters, making insurance coverage cheap for small and marginal farmers.
Despite its many advantages, the PMFBY has had a number of difficulties throughout its implementation, including lengthy claim settlement processes, poor coverage, farmers’ lack of knowledge, and difficult application procedures. To ensure that the system is successfully implemented and that farmers receive the greatest possible advantages, the government must take action to solve these issues.
Overall, the PMFBY is a substantial programme with the potential to significantly assist Indian farmers. The government must keep working to enhance the program’s execution, raise farmer knowledge, and resolve any issues that may come up. By doing this, the PMFBY may play a significant part in fostering the expansion and improvement of India’s agricultural sector and safeguarding the welfare of farmers.
Farmers can follow the instructions below to apply under the Pradhan Mantri Fasal Bima Yojana (PMFBY):
Get information about the PMFBY and the application process from the closest agricultural department or crop insurance provider – Farmers should contact the nearest agriculture department or crop insurance provider. Also, they can get the paperwork and forms needed to apply for the programme.
Fill out the application form – Farmers must complete the PMFBY application form, which asks for information about their name, address, crop information, and the type of insurance they need. Often, the application form is offered in both the native tongue and English.
The application form must be accompanied by the proper documentation, which includes proof of identification, bank account information, and other pertinent papers as requested by the insurer.
Pay the premium – The farmer is responsible for paying the insurance cover’s premium. The government sets the premium, which is typically a modest proportion of the amount insured. To make the scheme’s premium rates accessible for small and marginal farmers, substantial subsidies are applied to them.
Submit the application – The farmer must send the application to the insurer or the agriculture department after filling it out and attaching the required documentation.
Get insurance coverage – The farmer will get insurance coverage when the application has been reviewed and accepted. A claim can be made by a farmer in order to be compensated for crop failure or damage as a result of natural disasters.
Farmers can apply for the Pradhan Mantri Fasal Bima Yojana by getting in touch with their local agriculture department or crop insurance provider, completing the application form, supplying the required documentation, paying the premium, and submitting the form to the insurer or agriculture department.