Government Schemes Yojana

Pradhan Mantri Kisan Bima Yojana

Mukesh Jindal
Written by Mukesh Jindal

Pradhan Mantri Krishan Bima Yojana was launched when Rajnath Singh was agriculture minister in Atal Behari Vajpayee’s cabinet tends to provide insurance cover and financial support to the farmers in the event of failure of crops as a result of natural calamities like natural fire, lightning, storms, cyclone, flood, drought, pests and diseases. The salient features of the Scheme are:
• It is available to all the farmers irrespective of their size of holding.
• The scheme will be compulsory for loanee farmers and optional farmers.

Union Agriculture Minister Radha Mohan Singh on Friday said his ministry would propose two national schemes to give an impetus to the dying agricultural practice in the country.
Addressing the media, Mr Singh said, “There are 14 crore hectares of agricultural land in India, of which only 44 per cent in under irrigation.”
Mr Singh said that Pradhan Mantri Gram Sinchai Yojana would be introduced so that more agricultural land is irrigated.
Talking about the plight of small and marginal farmers he said that most of them were leaving the agricultural practice because of the uncertainty over the produce and returns.


Why Krishi Amdani Beema Yojana?

So that the farmers don’t bear any financial burden if their produce gets destroyed due to unexpected weather or for any other reason.

Premium rates:
• Food crop and oil seeds
I. Kharif season-3.5% of the sum insured and 2.5% for other food crops
II. Rabi season-1.5% for wheat and 2.0% for other food crops and oil seeds
• Annual commercial/horticulture crops: on the acturial basis.
• Unlike loanee farmers, non-loanee farmers can buy the insurance policy


• No restriction on the total sum insured and it can be of the value of the threshold yield of the crop with an option to cover up to 150% of the average yield of the crop for an extra premium.
• All the crops will be covered and in addition, three cash crops like sugarcane, potato and cotton are brought under the purview of the scheme.
• Remaining crops including horticultural and commercial crops will be placed under the scheme within the next three years.
• In case the premium rates worked out on the basis of actuarial data are less than the prescribed premium rates, the lower rate will be applicable.
• In the case of the commercial and horticultural crops, actuarial rates will be charged.
• Transition to the actuarial regime will be achieved in five years so as to make it sustainable.
• For small and marginal farmers, a subsidy of 50% on the premium.
• Premium subsidy to be phased out over a period of five years.
• The scheme will be operated on the basis of Area Approach.
• All farmers of a defined area affected by a calamity will be entitled to payment of insurance according to the indemnity rates prescribed for the area.
• In the case of localised calamities like hailstorm, landslides, cyclone, flood etc., individual claims will be entertained.
• A number of crop cutting experiments will be increased suitably in order to arrive at a realistic assessment of threshold yield level in a particular area.
Though initially, General Insurance Corporation of India will implement the Scheme, in due course of time an exclusive organisation will be set up to administer this Scheme.

On 18 February 2016, PM Narendra Modi unveiled the guidelines for operationalization of the Pradhan Mantri Fasal Bima Yojana (PMFBY). The guidelines were issued at a farmers’ convention that was held at Madhya Pradesh’s Sherpur village.

Benefits of the Scheme

The Scheme is expected to be a critical instrument of development in the field of crop production. It not only provides financially support in the event of crop failure but also would stimulate farmers to adopt progressive farming practices, high-value inputs and higher technology in farming. This will not only support and stimulate productions of food crops and oil seeds but also would help in stabilising farm incomes even during disaster hit years. Also, it will help in maintaining a smooth flow of agricultural credit. Needless to say that the entire community will benefit directly or indirectly through spillover and multiplier effects in terms of production, maintenance, employment generation, revenue collection etc. and the net accretion to economic growth.
The new scheme is expected to inculcate a habit of saving amongst the farmers and a sense of confidence in them to protect themselves against natural calamities. This Scheme will be the umbrella for the farmers of our country to cover all risks, which affect in them in one form or the other. Ultimately, it will cease to be a mere insurance scheme and would blossom into a protective cover to the farming community as a whole.

Highlights of the Scheme

• For many years now, a number of complex crop insurance schemes have existed. Farmers, however, have been unable to avail the benefits of these schemes.

• In most of the earlier crop insurance schemes, premium rates had risen drastically in recent years.
• The Pradhan Mantri Fasal Bima Yojana is premised on a premium amount of 2 percent for Kharif crops and of 1.5 percent for Rabi crops. This covers most food crops and oil crops cultivated in India. The premium is pegged at 5 percent for commercial or horticultural crops (including cotton) for one year.
• This means that the farmers shall derive “maximum benefits by paying minimal premium”. The government has decided to get rid of the “capping” mechanism that did not allow farmers to derive legitimate benefits previously.
• Smartphones, remote sensing technology and even drones shall be used to estimate losses, assess compensation, and settle claims without much delay.


We hope that the scheme is renewed and implemented as soon as possible.

About the author

Mukesh Jindal

Mukesh Jindal

My name is Mukesh Jindal, and I am from New Delhi, India. I am an engineer by profession. I am employed by an IT company in which I work. My topics of interest include technology, mobile, and apps.

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