Frequently Asked Questions Related To Pradhan Mantri Fasal Bima Yojana
Q1. What is Pradhan Mantri Fasal Bima Yojana?
Answer: The Pradhan Mantri Fasal Bima Yojana is a government-sponsored crop insurance scheme that was launched in 2016. The scheme aims to provide financial assistance to farmers in the event of crop loss due to natural calamities. The scheme is open to all farmers, regardless of their income level or social status. Under the scheme, farmers are required to pay a premium of 2% of the sum assured for rain-fed crops, and 5% for irrigated crops. In the event of crop loss, farmers will receive a compensation of up to 75% of the sum assured.
Q2. State the objectives of the Pradhan Mantri Fasal Bima Yojana.
Answer: The objectives of the Pradhan Mantri Fasal Bima Yojana (PMFBY) are to provide insurance cover to farmers against crop loss due to natural calamities, and to encourage them to adopt new technology and improve their financial resilience. The scheme provides insurance cover for both pre-harvest and post-harvest risks. The premium for pre-harvest risks is 2% of the sum insured and for post-harvest risks, it is 1.5% of the sum insured.
Q3. Mention the importance of the Pradhan Mantri Fasal Bima Yojana.
Answer: The Pradhan Mantri Fasal Bima Yojana is a Central sector scheme that aims to provide financial support to farmers in the event of crop loss due to natural calamities. The scheme is a part of the governmentâs efforts to double farmersâ incomes by 2022.
- The scheme is voluntary and open to all farmers, regardless of whether they are small or marginal, or whether they cultivate rain-fed or irrigated land.
- The Pradhan Mantri Fasal Bima Yojana is a much-needed safety net for farmers, who are often at the mercy of the vagaries of the weather.
- The scheme will help reduce the financial risk associated with farming and will enable farmers to invest more in their farms and improve their productivity.
Q4. What are the drawbacks of the Pradhan Mantri Fasal Bima Yojana?
Answer: Here are some of the drawbacks of the PM Fasal Bima Yojana:
- High premium rates: The premium rates under the PMFBY are quite high, especially for small and marginal farmers. For example, the premium rate for wheat is 4.5%, which is quite high considering the fact that wheat is a relatively low-risk crop.
- Low claim settlements: The PMFBY has a very low claim settlement ratio, with only 30% of claims being settled so far. This is largely due to the fact that insurance companies are finding it difficult to assess crop losses.
- Exclusion of small and marginal farmers: Small and marginal farmers are the most vulnerable to crop losses, but they are also the ones who are excluded from the PMFBY. This is because the scheme requires farmers to have a minimum land area of 1 hectare.
Q5. What is Revamped PMFBY 2.0?
Answer: The revamped PMFBY 2.0 was launched in 2020 to address concerns with the execution of the crop insurance plan. The Union Cabinet has approved a revision of the PMFBY and adjustments. Under this, the Center has resolved to cap the PMFBY premium rates at a maximum of 30% in non-irrigated areas and 25% in irrigated areas, against which it would carry 50% of the subsidy.
Pradhan Mantri Fasal Bima Yojana
The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a government-sponsored crop insurance scheme that was launched on 18th February 2016. The scheme aims to provide financial assistance to farmers in the event of crop loss due to natural calamities. The scheme is open to all farmers, regardless of their income level or social status. Under the scheme, farmers are required to pay a premium of 2% of the sum assured for rain-fed crops, and 5% for irrigated crops. In the event of crop loss, farmers will receive a compensation of up to 75% of the sum assured. The scheme is implemented by the Ministry of Agriculture and Farmersâ Welfare.
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