‘Pradhan Mantri Fasal Bima Yojana’ Report

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‘Pradhan Mantri Fasal Bima Yojana’ Report

‘Pradhan Mantri Fasal Bima Yojana’ Report

Recently the Parliamentary Committee on Agriculture has submitted a report on ‘Pradhan Mantri Fasal Bima Yojana’.

The following key issues have been highlighted in this report of the Committee:

  • Withdrawal of states from Pradhan Mantri Fasal Bima Yojana (PMFBY)
  • Delay in settlement of claims under PMFBY
  • Institutional capacity to implement PMFBY
  • Lack of coordination among various stakeholders
  • Different types of disputes between the State Governments and the insurance companies relating to the determination of the yield.
  • Inadequate awareness among farmers regarding the scheme etc.

Key Recommendations:

  • Suitable changes should be made in the following two provisions under the revised operational guidelines to prevent cases of abandonment of the scheme by the states.
  • States which delay the release of subsidy beyond the stipulated time limit cannot participate in the upcoming crop season.
  • The required central share of premium subsidy (90:10 for NE states and 50:50 for rest of the states) will be provided up to 25% of the gross premium rate for irrigated areas/crops and up to 30% for un-irrigated areas/crops.
  • Studies on exploration of alternative risk measures for high risk areas/crops should be intensified.
  • Insurance companies (ICs) should ensure to set up functional branches at Tehsil level in each district.
  • Periodic performance appraisal of insurance companies should be done.
  • It should be ensured that there is no compulsory deduction from the account of the loanee farmers.
  • Insurance companies should fix a fixed time limit for timely settlement of claims or provision should be made for penalty for not doing so.
  • Grievance Redressal Committees at various levels should be constituted by all the States/UTs.

Pradhan Mantri Fasal Bima Yojana (PMFBY)

  • PMFBY was launched in April 2016 to provide a simple and affordable crop insurance product. Under this, comprehensive risk cover has been ensured for the farmers against all non-preventable natural hazards from the pre-sowing stage to post-harvest. Also, adequate claim amount has been fixed for the farmers.
  • The rate of premium to be paid by the farmers has been fixed at 2% for all Khari crops and 1.5% for all Rabi crops. The annual premium is 5% in case of commercial and horticultural crops.
  • With an aim to ensure more efficient and effective implementation of the scheme, PMFBY was revamped in the Kharif season of the year 2020 by the Central Government. Provisions like 100% voluntary enrollment for farmers have been made under this new revised scheme. Also, the States/UTs were given flexibility in the implementation of the scheme.

Source – PIB

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