An 80-year-old farmer Ramalingam, living in Mathur village in Tamil Nadu’s Ariyalur district, on July 31 he visited a common service centre (CSC) in his village to get his groundnut crop insured for this kharif season under the Pradhan Mantri Fasal Bima Yojana (PMFBY). For the past many years, he has been cultivating varieties of crops from groundnut to black gram.
His story is not an isolated one, after the launch of the PMFBY in 2016, from this scheme millions of farmers have benefitted. Farmers paid Rs 13,000 crore as premium, while they obtained Rs 60,000 crore as coverage declares below PMFBY in the first 3 years.
PMFBY is a multi-stakeholder scheme which is developing every day and has been reviewed regularly. After a detailed consultation with all stakeholders, the scheme was renovated in February, it is just like addressing most of the challenges impacting smooth implementation as well as acceding to the long-standing demand of the farmers to make the scheme voluntary. Because of the climate changes like Rainfall deficits, dry spells, and the late onset of rainfall underline the importance of crop insurance for the farmers.
PMFBY is for help manufacturing in agriculture through supplying help to make certain overall hazard cover for crops of farmers in opposition to all non-preventable natural risks from pre-sowing to the post-harvest stage
This scheme has finished four years and has been implemented in 27 states and UTs. The sum insured for every crop roughly correlated with the fee incurred and offers farmers sufficient economic protection. The sum insured has nearly doubled beneath this scheme from Rs 22,000 per hectare to Rs 39,000 per hectare. Certain states like Andhra Pradesh, Jharkhand, and Telangana have lately taken a gap combined claim ratio within the first three years of the scheme implementation is 88.3%. This suggests that for each Rs 100 received as total premium. For kharif 2019, the claims to the top rate ratio for facts to be had until now stands at 80.2%. This is often expected to form higher further once claims for few states are fully reported from the implementation of PMFBY.
Kharif 2020 is the primary season of implementation of the remodeled scheme, and some states have confronted demanding situations in phrases of tendering and notifying the scheme on time, especially, amidst the COVID-19 pandemic. Madhya Pradesh and Gujarat are currently finalizing their respective tenders for the implementation of PMFBY.
Insurance companies have to now spend 0.5% of the total premium collected on information, education, and communication (IEC) activities. A central advisory committee has additionally been installation with the imposing state governments and coverage corporations to make sure uniformity of message across the country and do away with gaps in the dissemination of information. The authorities are seeking to make a sure obvious and well-timed evaluation of the yield, and quick computation and price of claims to the farmers, proportionate to the crop loss via a sequence of technological interventions and reforms to comprehend the aim of Atmanirbhar Krishi.
