New Crop Insurance Scheme Advantage (Important) (Download PDF)

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Government of India has launched the Pradhan Mantri Fasal Bima Yojana (PMFBY) with farmer friendly provisions providing farmers maximum financial protection against non-preventable natural risks.

New Crop Insurance Scheme Advantage

New Crop Insurance Scheme Advantage

New Crop Insurance Scheme Advantage

Simplified Provisions and Reduced Premium

  • Reduced premium for all food and oilseeds crops kept at a maximum of 1.5 % for Rabi, 2 % for Kharif and 5 % for annual horticultural and commercial crops

Increase in Coverage of Area

Increase in coverage of area and crops with increased awareness among farmers:

  • In 2016 - 17, 30 % of Gross Cropped Area (GCA) covered in comparison to 23 % in 2015 - 16.
  • In 2016 - 17, a total of 5.74 crore farmers were covered, including 1.35 crore non-loanees with an increase of 0.89 crore in total coverage of farmers, an enhancement of 18.23 % compared to previous year. Coverage of non-loanees has increased by 123.50%.
  • During 2016 - 17, 518.11 lakh ha. area insured which is 56.56 lakh ha. more than previous year, an enhancement of 10.78%.
  • In 2016 - 17, coverage of non-loanee farmers is up from 5 % to 22.5 % of total farmers insured.

Increase in Sum Insured

Capping of premium reduced sum insured. However, under PMFBY, sum insured equated to Scale of Finance (SOF).

  • In 2016 - 17, the total area covered insured for a sum of Rs. 204779 crore- 78.14 % more than Rs. 114951.81 crore in 2015 - 16.
  • Sum insured per ha. in Kharif 2015 was Rs. 20498 increased to Rs. 34574 in 2016 and Rabi 2015 - 16 was Rs. 8733 was increased to Rs. 39358 in 2016 - 17.

Increase in Risk Coverage

  • Comprehensive coverage provided against non-preventable natural risks from pre-sowing to post-harvest losses. Losses due to localised risks are estimated at the individual farm level for claim settlement.
  • Coverage of Losses due to Prevented Sowing: In 2016 - 17, in Tamil Nadu, claims upto 25 % of sum insured settled due to prevented sowing on account of inclement weather.
  • 25 % advance relief due to mid-season adversity such as floods, drought spell, severe drought, unseasonal rains etc.
  • Coverage of localized due to localized calamities such as hailstorm, inundation and landslides.
  • Coverage of Post-Harvest Losses:

Use of Improved Technology

  • States provide Crop Cutting Experiment (CCE) data to insurance companies within one month of harvest and the companies have to settle the claims within three weeks of receiving the CCE data.
  • Mandatory to use smartphones or CCE Agri App for capture and transmission of yield data to the crop insurance portal.
  • Due to this innovation, subsequent to harvest of Kharif crops between November to December 2016, CCE data is obtained from end December onward and by January claims are settled.
  • Central Crop Insurance Portal developed integrating farmers and stakeholders promotes transparency and timeliness and provides online registration of farmers.
  • 12 lakh farmers registered online for crop insurance during Kharif 2017.
  • Direct Benefit Transfer (DBT) for transmission of claims directly to the farmers account.
  • Provision for use of advanced technology- drone, remote sensing etc. for promoting transparency and immediate settlement of insurance claims

Non Laonee Farmers & Sharecroppers

  • Farmer friendly administrative initiatives and technology put in place to increase the coverage of non-laonee farmers including sharecroppers.
  • Common Service (CSC) engaged to facilitate enrolment of non-loanee farmers from Kharif 2017.

Claim Settlement

  • In 2016 - 17 (Kharif 2016 and Rabi 2016 - 17), which was a good monsoon year, against the gross premium of Rs. 22, 344.93 crore, total claims have been estimated at about Rs. 15, 100.68 crore (68%).
  • Of this claims of Rs. 9, 446.83 crore have been approved and claims of Rs. 6, 624.65 crore have already been settled

- Published/Last Modified on: September 6, 2017

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