Pradhan Mantri Fasal Bima Yojana (PMFBY) approved by Union Cabinet [ Current Affairs ]
About Pradhan Mantri Fasal Bima Yojana: PMFBY is a crop insurance scheme aimed to improve the farming sector in India. It is beneficial to farmers and it is aimed to decrease the premium problem of farmers and certify early clearance of crop assurance which was claim for the full protected amount.
About the Uniform premium of the scheme:
- As per the scheme, farmers will pay uniform premium of 2 % for all Kharif crops and 1.5 % for all Rabi crops.
- Farmers will pay 5 % premium for annual agricultural and commercial crops.
- Government will also pay balance premium to provide full covered amount to the farmers when they face any crop loss because of natural disasters.
Subsidy as per Balance Premium:
- Even if balance premium is 90%, there will be no upper limit subsidy given by Government.
- As per subsidy by government, the provision of capping the premium rate has been removed and farmers will get claim against full insured amount without any decrease.
- The decision of removal of provision of capping the premium rate was taken as it resulted in low claims being paid to farmers.
- Published on: January 18, 2016