The Government has decided to incorporate the provision of penalties for States and Insurance Companies for the delay in settlement of insurance claims under the Pradhan Mantri Fasal BimaYojana (PMFBY).
Provision of penalties for States and Insurance Companies for the delay in settlement of insurance claims has been incorporated.
There is a Standard Operating Procedure for evaluation of insurance companies and remove them from the scheme if found ineffective in providing services.
The Government has also decided to include perennial horticultural crops under the ambit of PMFBY on a pilot basis.
The scheme, as per the new operational guidelines provides add-on coverage for crop loss due to the attack of wild animals, which will be implemented on a pilot basis.
Aadhaar number will be mandatorily captured to avoid duplication of beneficiaries.
The insurance companies are given a target of enrolling 10% more non-loanee farmers than the previous corresponding season.
The insurance companies will have to mandatorily spend 0.5% of gross premium per company per season for publicity and awareness of the scheme.
The new operational guidelines address the current challenges faced while implementing the scheme by putting forth effective solutions. The much-demanded rationalization of premium release process has been incorporated in the new guidelines. As per this, the insurance companies need not provide any projections for the advance subsidy.
In April 2016, the government of India had launched Pradhan Mantri Fasal Bima Yojana (PMFBY) after rolling back the earlier insurance schemes viz. National Agriculture Insurance Scheme (NAIS), Weather-based Crop Insurance scheme and Modified National Agricultural Insurance Scheme (MNAIS).
It envisages a uniform premium of only 2% to be paid by farmers for Kharif crops, and 1.5% for Rabi crops. The premium for annual commercial and horticultural crops will be 5%.
The scheme is mandatory for farmers who have taken institutional loans from banks. It’s optional for farmers who have not taken institutional credit.
- Providing financial support to farmers suffering crop loss/damage arising out of unforeseen events.
- Stabilizing the income of farmers to ensure their continuance in farming.
- Encouraging farmers to adopt innovative and modern agricultural practices.
- Ensuring the flow of credit to the agriculture sector which contributes to food security, crop diversification and enhancing growth and competitiveness of the agriculture sector besides protecting farmers from production risks.