Risk Coverage of Pradhan Mantri Fasal Bima Yojana
The Pradhan Mantri Fasal Bima Yojana covers the following risks and situations:
- Yield Losses of standing crops, on a notified area basis.
- Yield losses which are brought by unavoidable risks including natural fires and storms, lightning, cyclones, hailstorms, tempests, tornadoes, and hurricanes.
- Flood, inundation, and landslide risks.
- Additionally covered dry spells, pests, and diseases.
- When the majority of covered farmers are unable to seed because of unfavourable weather and have incurred sowing expenditures.
- Losses after harvest.
- Regional issues are also explored.
Pradhan Mantri Fasal Bima Yojana
The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a government-sponsored crop insurance scheme that was launched on 18th February 2016. The scheme aims to provide financial assistance to farmers in the event of crop loss due to natural calamities. The scheme is open to all farmers, regardless of their income level or social status. Under the scheme, farmers are required to pay a premium of 2% of the sum assured for rain-fed crops, and 5% for irrigated crops. In the event of crop loss, farmers will receive a compensation of up to 75% of the sum assured. The scheme is implemented by the Ministry of Agriculture and Farmers’ Welfare.