How Does Crop Insurance Scheme Fasal Bima Yojana Function?

ByDhruv Sharma

Introduction

The Pradhan Mantri Fasal Bima Yojana (PMFBY) has been a cornerstone of India’s agricultural policy since its inception in 2016. Designed to safeguard farmers from financial losses due to crop failure, the scheme has evolved significantly over the years to enhance transparency, accountability, and accessibility for farmers across the country.

WhatsApp Group Join Now

Coverage and Premium Structure

Under PMFBY, farmers are required to pay a nominal premium, which is subsidized heavily by the government. The premium rates are capped at 2% for Kharif crops, 1.5% for Rabi crops, and 5% for commercial/horticultural crops. Several states have further waived off the farmer’s share of premium, reducing the financial burden on them significantly.

Claims Settlement and Challenges

The scheme boasts an impressive record of claims settlement, with 98% of the total reported claims amounting to Rs. 1,67,475 crore already disbursed. However, challenges such as delayed release of state share in premium subsidies, yield-related disputes, and technical issues with payment mechanisms have caused delays in some instances.

Government Interventions

To mitigate delays and ensure prompt payment, the government has introduced measures like advancing its share of premium subsidies independently of states, thereby enabling insurance companies to settle claims on a pro-rata basis. Additionally, insurance companies are liable to pay penal interest at 12% per annum for delays beyond stipulated timelines, as per revamped operational guidelines.

Read Previous Post: CM Mainya Samman Yojana Receives 5000 Applications in East Singhbhum

Monitoring and Technology Integration

The effective monitoring of PMFBY includes regular interactions through video conferencing, review conferences, and the implementation of the ‘Digiclaim Module’. This module integrates the National Crop Insurance Portal (NCIP) with the Public Financial Management System (PFMS) and insurance companies’ accounting systems, ensuring transparent and timely processing of all claims.

Frequently Asked Questions (FAQs)

1. What is PMFBY?

  • PMFBY stands for Pradhan Mantri Fasal Bima Yojana, a crop insurance scheme in India aimed at protecting farmers against crop failure.

2. How are premiums determined under PMFBY?

  • Premium rates are capped at 2% for Kharif crops, 1.5% for Rabi crops, and 5% for commercial/horticultural crops, with substantial subsidies from the government.

3. How are claims settled under PMFBY?

  • Claims are settled promptly by insurance companies, with the government taking steps to ensure timely release of funds and penalizing delays with interest.

4. What is the ‘Digiclaim Module’ in PMFBY?

  • The ‘Digiclaim Module’ is a technology integration initiative that facilitates transparent and efficient processing of insurance claims under PMFBY.

5. How has PMFBY evolved since its inception?

  • PMFBY has evolved to include better transparency, reduced financial burden on farmers, and enhanced mechanisms for claim settlement and monitoring.

This comprehensive framework of the Pradhan Mantri Fasal Bima Yojana underscores its pivotal role in safeguarding the interests of Indian farmers against agricultural risks, contributing to the resilience and growth of the agricultural sector.