Premium may change in PMFBY 2.0
The premium of crop insurance is likely to be revised after the Union Cabinet approved the changes in the existing Pradhan Mantri Fasal Bima Yojana, an official said. Under the new farm insurance scheme which is also considered as PMFBY 2.0, the government made major changes making it optional for farmers. Launched in February 2016 by Prime Minister Narendra Modi, it is mandatory for loanee farmers to take insurance cover under the PMFBY. Currently, 58 per cent of the total farmers are loanees.
- The state-owned crop insurance company official,however, did not disclose whether the premium would beincreased or not, but experts said that it may head north fora particular risk coverage.
- Now, with crop insurance being made optional for both agriculture loanee and non-loanee, the number of farmers under the coverage may come down, which could lead to an increase of the underwriting cost," an insurance company official said on condition of anonymity.
- In the existing scheme, there are five riders in the crop insurance coverage but under the new scheme, one can pick and choose the risk cover according to one's need.
- AICIL currently has a licence for crop insurance in the country and has sought approval from the Insurance Regulatory and Development Authority of India for offering more products covering other verticals of agriculture and allied sectors.
- The company said it aims at offering "comprehensive"insurance products for the rural population rather than restricting itself to crop insurance.
- Poddar said he expects to get the regulator's nod in the near future for "rural comprehensive insurance product that will cover all areas related to agriculture, aquaculture,animal husbandry and farm equipment".
- The Pradhan Mantri Fasal Bima Yojna was launched on 18th February 2016 by Prime Minister Shri Narendra Modi.
- PMFBY provides a comprehensive insurance cover against failure of the crop thus helping in stabilising the income of the farmers.
- The Scheme covers all Food & Oilseeds crops and Annual Commercial/Horticultural Crops for which past yield data is available and for which the requisite number of Crop Cutting Experiments (CCEs) are conducted under General Crop Estimation Survey (GCES).
- The scheme is implemented by empanelled general insurance companies. Selection of Implementing Agency (IA) is done by the concerned State Government through bidding.
- The scheme is compulsory for loanee farmers availing Crop Loan /KCC account for notified crops and voluntary for others. The scheme is being administered by the Ministry of Agriculture.