The loss of income to the farmers and the loss of crops or food to the nation has often sparked debates about the need for crop insurance schemes. In light of these, the National Agricultural Insurance Scheme was introduced in 1999 and modified later. 

However, these schemes did not entirely solve the various issues that sprang up in the analysis, determination and payment of premiums for such insurance. This motivated the government to launch the Pradhan Mantri Fasal Bima Yojana (PMFBY).

What Is Pradhan Mantri Fasal Bima Yojana?

Pradhan Mantri Fasal Bima Yojana is the integrated and latest crop insurance scheme in furtherance of the One Nation-One Scheme. It is an amalgamation of profitable and advantageous features of the previous schemes along with modifications. 

The main ideals of the PMFBY are

• Provision of financial assistance and most importantly insurance coverage in events of crop failure owing to natural calamities, force majeure events, pests and animals. 

• Neutralisation of losses and stabilisation of farmers’s incomes. 

• Promotion of technology and innovative methods in the farming process.

• Ensuring a smooth flow of credit to the agricultural sector. 

The launch date of PMFBY is February 18, 2016. It was launched by the Ministry of Agricultural and Farmers Welfare (MoAFW) and includes both agricultural as well as horticulture crops. 

Drawbacks of National Agricultural Insurance Scheme: Need to Introduce PMFBY

The NAIS scheme of 1999 presented drawbacks that were addressed by way of enactment of PMFBY. Let us have a look at them:

• Low Coverage

• Low Operational Performance

• Lack of participation of farmers

• Lack of awareness

• Lack of access to farmers

These drawbacks prompted the government to replace the NAIS with PMFBY. 

Benefits of Pradhan Mantri Fasal Bima Yojana

The PM Fasal Bima Yojana benefits the farmers by providing insurance coverage on their yield. Let us have a summarised look at the benefits of this government scheme:

• Low Premium Rates: The premium rates to be paid by the farmers are minimally set at 2% for agriculture and 5% for horticulture crops respectively. Low premium rates ensure the involvement of farmers and timely insurance claim payment due to government’s involvement. 

• No Upper Cap On Government Subsidy: No upper cap has been placed on the amount of premium that is to be borne by the government. The percentage of the premium to be borne by the government could be as high as 90%. 

• Promotion of Innovation: Technology and innovation will be promoted to a huge extent. Pictures of crop cutting and uploading of data will now be done using smartphones to reduce the time in payment of insurance claims. 

• Service Tax Liability: The PMFBY is exempt from service tax liability, unlike the NAIS scheme. All services employed in the implementation of the government scheme are exempt from such tax. 

Eligibility Criteria: Who Can Apply For Pradhan Mantri Fasal Bima Yojana?

The eligibility criteria for this government yojana or scheme are as follows:

• All farmers growing notified crops.

• Such crops should be grown in a notified area.

• Farmers should have an insurable interest in such crops. 

How To Apply For Pradhan Mantri Fasal Bima Yojana: A Step-By-Step Guide?

The process of applying for an insurance scheme under PMFBY is: 

• Visit the PMFBY website run by the Ministry of Agriculture and Farmers Welfare at https://pmfby.gov.in/.

• Click on the Farmer Corner and choose the register yourself for the crop insurance scheme.

• Fill in the necessary details and upload the relevant documents. 

• You can check the status of your application here. 

The PMFBY aims to provide reassurance assistance to farmers in hours of need. The guidelines under the scheme are revised from time to time as per the needs and developments in the agricultural sector. This government scheme is a panacea for the farmers, especially in geographically vulnerable areas. 

For more information, call the Krishi Rakshak Portal Helpline at 14447 or visit https://pmfby.gov.in/.