PM Fasal Bima Yojna (PMFBY)- Andhra Pradesh Rejoins PMFBY

Table of Contents

PM Fasal Bima Yojna (PMFBY)- Relevance for UPSC Exam

GS Paper 2: Governance, Administration and Challenges- Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Recently, Andhra Pradesh has rejoined the Pradhan Mantri Fasal Bima Yojana (PMFBY) following a request from the Central Government.
Andhra Pradesh had opted out of the PMFBY scheme earlier, as the Central government was not willing to extend the scheme to the farmers outside the webland data.

The details of claims disbursed under from 2018-19 onwards under the PM Fasal Bima Yojna (PMFBY) scheme are given below :

(Rs. in crore)

* As on 30.06.2022.

Settlement of Claims: The admissible claims under the PMFBY are generally paid by the concerned insurance companies-
- Within two months of completion of Crop Cutting Experiments (CCEs)/harvesting period and
- One month of notification for invoking the risks/perils of prevented sowing, mid-season adversity and
- Post-harvest losses subject to receipt of total share of premium subsidy from concerned State Government within time.
Monitoring of Claims: Department of Agriculture is regularly monitoring the implementation of PMFBY including timely settlement of claims through weekly video conference of stakeholders, one to one meetings with insurance companies/States etc.
Compensation for Delayed Payment: Insurance companies have to pay penal interest @12% per annum to the farmers for the period beyond the stipulated period in the PMFBY Guidelines from the date of receipt of final yield data from the State Government and completion of crop damage survey.
- State Governments have been advised to calculate the admissible interest, if any and direct the concerned insurance companies to pay to eligible farmers.

About: PMFBY is a centrally sponsored scheme to provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests & diseases.
- PMFBY was launched in 2016 by replacing two schemes namely, National Agricultural Insurance Scheme (NAIS) as well as the Modified NAIS.
PMFBY Premium: The scheme has a uniform premium of only 2% to be paid by farmers for all Kharif crops and 5% for all Rabi crops.
- In case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%.
- The balance premium is equally divided between Centre and the state.
- There is no upper limit on Government subsidy. Even if balance premium is 90%, it will be borne by the Government.
Dispute Resolution: To resolve the technical disputes between insurance companies and other stakeholders including States, following committees have been set-
- At Centre Level: Technical Advisory Committee (TAC) at Centre level and
- At State Level: State Technical Advisory Committees (STAC) at State level

The PMFBY envisages coverage of all food crops (cereals, millets and pulses), oilseeds and commercial/horticultural crops.
- This is subject to availability of past yield data of requisite number of years based on Crop Cutting Experiments (CCEs) as well as capacity of the State Government to conduct requisite number of CCEs to assess the yield of the crop to calculate claims.
However, specific crop is notified by the concerned State Government keeping in view the aforesaid provision.
For the crops not meeting the aforesaid conditions, the concerned State Government is free to notify them for coverage under Restructured Weather Based Crop Insurance Scheme (RWBCIS).
- Under RWBCIS, claims payment are being structured on the basis of weather index parameters.

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