With reference to ‘Pradhan Mantri Fasal Bima Yojana’, consider the following statements:
- Under this scheme, farmers will have to pay a uniform premium of two per cent for any crop they cultivate in any season of the year.
- This scheme covers post-harvest losses arising out of the cyclones and unseasonal rains.
Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 or 2
Explanation
Statement 1 is incorrect
- The PMFBY crop insurance scheme was launched in 2016.
- It was formulated in line with the One Nation-One Scheme theme by replacing:
- National Agricultural Insurance Scheme (NAIS) and
- Modified National Agricultural Insurance Scheme (MNAIS).
- Rate of Premium Paid by the Farmer to Insurance Company under PMFBY:
- If the premium rate quoted by the Insurance Company is higher than the above rates, the difference will be paid by the State and GoI at 50% each in the form of premium subsidy.
- GoI’s share in premium subsidy is 90% for the North Eastern States.
- GoI’s premium subsidy is limited up to 30% for unirrigated areas/crops and 25% for irrigated areas/crops (Before 2020, there was no upper for central subsidy).
- There is no upper limit on Government subsidy.
- The scheme is optional for all farmers. (Before 2020, it was mandatory for farmers who have taken institutional loans)
| Crop | Rate of Premium |
| Kharif crops | 2% |
| Rabi crops | 1.5% |
| Commercial crops | 5% |
| Horticultural crops | 5% |
Statement 2 is correct
- One of the main objectives is to provide insurance to farmers for crop failure due to unforeseen events (natural calamities, pests and diseases).
- Crop risks leading to crop loss covered under the scheme are:
- Prevented Sowing/Planting/Germination Risk
- Standing Crop (Sowing to Harvesting)
- Post-Harvest Losses
- Localized Calamities
- Crop loss due to attack by wild animals
- General Exclusions: Losses due to war and nuclear risks, malicious damage, and other preventable risks shall be excluded.
