Claims under PMFBY Surge
There has been a surge in the number of claims under the Pradhan Mantri Fasal Bima Yojana (PMFBY) in fiscal 2018-19.
India has become the third largest crop insurance market in the world, after the US and China.
The claim ratio has gone up to 93 per cent for the year ended March 2019 as against 85 per cent in the previous year. Most of the claims have come from states like Maharashtra, Tamil Nadu and Karnataka, crop insurance penetration was less in northern states like Bihar and UP. Further delay in disbursals under crop insurance scheme has come down from 7-9 months to 2-3 months.
Pradhan Mantri Fasal Bima Yojana
Pradhan Mantri Fasal Bima Yojana (PMFBY) is a government-sponsored crop insurance scheme. The farmers are required to pay a maximum of 2 per cent premium for Kharif and 1.5 per cent for Rabi crops and 5 per cent for commercial/horticultural crops.
The difference between the actual premium rate and the rate of insurance charges payable by farmers is the normal premium subsidy, which will be shared equally by the Centre and states.
The coverage under PMFBY is mandatory for all loanee farmers. The insurance scheme is implemented on an area approach whereas localised losses (due to hailstorm, landslide and inundation) and post-harvest losses (due to cyclone/ cyclonic rains and unseasonal rain) are assessed on individual farm level survey basis.
Category: Government Schemes Current Affairs