Why in news?
- With the Pradhan Mantri Fasal Bima Yojana (PMFBY) entering the seventh year of implementation in the upcoming Kharif season, the government has announced a new doorstep crop insurance distribution policy known as ‘Meri Policy Mere Hath’.
- The ‘Meri Policy Mere Hath’ door-step campaign has been launched to ensure that all farmers are well informed about their land records, policies, and the PMFBY’s claim and grievance redressal process.
- In the upcoming Kharif season which will be beginning in June, the doorstep campaign will be launched in all implementing states.
About Pradhan Mantri Fasal Bima Yojana (PMFBY)
- In the 2016, PMFBY was launched with the aim of providing financial assistance to all the farmers who have suffered crop damage or loss from natural disasters.
About Pradhan Mantri Fasal Bima Yojana (PMFBY):
- In the 2016, PMFBY was launched with the aim of providing financial assistance to all the farmers who have suffered crop damage or loss from natural disasters.
- It provides a comprehensive insurance cover against failure of the crop thus helping in stabilising the income of the farmers.
- Scope: All food & oilseed crops and annual commercial/horticultural crops for which past yield data is available.
- Premium: The prescribed premium is 2% to be paid by farmers for all Kharif crops and 5% for all rabi crops.
- In the case of annual commercial and horticultural crops, the premium is5%.
- Premium cost over and above the farmer share was equally subsidized by States and GoI.
- However, GoI shared 90% of the premium subsidy for North Eastern States to promote the uptake in the region.
- The scheme was compulsory for loanee farmers availing Crop Loan/Kisan Credit Card (KCC) account for notified crops and voluntary for others.
- In order to ensure more efficient and effective implementation of the scheme, the central government had revamped PMFBY in the 2020 Kharif season.
- This overhauled PMFBY is often called PMFBY 2.0, it has the following features:
- Completely Voluntary: Enrolment 100% voluntary for all farmers from 2020 Kharif.
- Limit to Central Subsidy: The Cabinet has decided to cap the Centre’s premium subsidy under the scheme for premium rates up to 30% for unirrigated areas/crops and 25% for irrigated areas/crops.
- More Flexibility to States: The government has given the flexibility to states/UTs to implement PMFBY and given them the option to select any number of additional risk covers/features.
- Investing in ICE Activities: Insurance companies have to now spend 0.5% of the total premium collected on information, education and communication (IEC) activities.
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