Agriculture is the backbone of India’s economy, and the livelihood of millions of farmers depends on it. However, farmers face various challenges like unpredictable weather conditions, pest attacks, and crop failure, which lead to financial losses. To mitigate such risks, the Government of India launched the Pradhan Mantri Fasal Bima Yojana (PMFBY) in 2016.
PMFBY is a crop insurance scheme aimed at providing financial support to farmers in case of crop loss due to natural calamities, pests, or diseases. It is implemented by the Ministry of Agriculture and Farmers’ Welfare, Government of India. In this blog, we will discuss the features, benefits, and eligibility criteria of PMFBY in detail.
Features of PMFBY
The following are the key features of PMFBY:
PMFBY covers almost all crops cultivated in India, including food crops, horticultural crops, and commercial crops. The scheme covers both pre-harvest and post-harvest losses, such as damage to crops due to floods, droughts, cyclones, hailstorms, landslides, and pest attacks.
The premium rates for PMFBY are very nominal and affordable for farmers. The premium rates are fixed by the government, and farmers have to pay only 2% of the sum insured for Kharif crops, 1.5% for Rabi crops, and 5% for horticultural crops.
Under PMFBY, the sum insured is fixed based on the cost of cultivation, which includes expenses incurred on seeds, fertilizers, pesticides, labor, etc. The sum insured is calculated on a per-hectare basis, and there is no upper limit on the sum insured.
The claim settlement process under PMFBY is straightforward and hassle-free. Farmers can make a claim for a crop loss by informing the concerned authorities within 72 hours of the incident. The claim is settled within 21 days of the receipt of the claim application.
PMFBY uses technology extensively to ensure transparency and efficiency in the implementation of the scheme. The scheme is implemented through an online portal, and farmers can enroll themselves, pay premiums, and make claims through the portal.
Benefits of PMFBY
PMFBY has several benefits for farmers, which are as follows:
PMFBY provides financial security to farmers in case of crop loss due to natural calamities, pests, or diseases. It helps farmers to overcome the financial burden caused by crop loss and enables them to continue farming.
Access to Credit
PMFBY helps farmers to access credit from banks and financial institutions. Banks consider crop insurance as collateral security, and farmers can avail of crop loans easily with crop insurance.
The premium rates for PMFBY are very nominal and affordable for farmers. The government provides a subsidy of up to 90% of the premium amount, which reduces the burden on farmers.
PMFBY is implemented through an online portal, which ensures transparency in the implementation of the scheme. Farmers can enroll themselves, pay premiums, and make claims through the portal, which eliminates the need for middlemen and reduces the chances of corruption.
PMFBY ensures timely payment of claims to farmers. The claim settlement process is straightforward and hassle-free, and claims are settled within 21 days of the receipt of the claim application.
The following are the eligibility criteria for farmers to avail of PMFBY:
All farmers, including sharecroppers and tenant farmers, are eligible to avail
All crops, including food crops, horticultural crops, and commercial crops, are covered under PMFBY.
The farmer should own or cultivate the land on which the crop is grown.
Farmers have to enroll themselves for PMFBY before the start of the crop season. The enrollment period is usually between April and August for Kharif crops and September and January for Rabi crops.
How to Apply for PMFBY?
The following are the steps to apply for PMFBY:
- Visit the official website of PMFBY.
- Register on the website by providing the necessary details.
- Select the crop for which you want to avail of PMFBY.
- Provide the details of the land on which the crop is grown.
- Choose the sum insured and pay the premium.
- Receive the insurance policy on the registered email address.
PMFBY is a significant initiative by the Government of India to provide financial support to farmers in case of crop loss due to natural calamities, pests, or diseases. The scheme has several benefits for farmers, including financial security, access to credit, affordable premium, transparency, and timely payment.
PMFBY has already benefited millions of farmers across the country and has helped them to overcome the financial burden caused by crop loss. If you are a farmer, make sure to enroll yourself for PMFBY before the start of the crop season and secure your crops from natural calamities and pests.
ffreedom app is providing a detailed course on Pradhan Mantri Fasal Bima Yojana (PMFBY) to educate farmers on the scheme’s benefits and enrollment process. The course covers all aspects of PMFBY, including the crops and land covered, the premium rates, and the claims settlement process. The course also emphasizes the importance of timely enrollment and the documents required for the same. Through this course, the ffreedom app aims to empower farmers with the knowledge and information needed to make informed decisions regarding their crop insurance. Overall, this course is an excellent resource for farmers looking to avail of the benefits of PMFBY.
You can explore our Pradhan Mantri Fasal Bima Yojana Course through the following links:
Pradhan Mantri Fasal Bima Yojana Course in Kannada https://ffreedom.com/kannada/personal-finance-courses/pmfby-crop-insurance-is-now-easy