Revamped PMFBY 0
The new PMFBY 2.0 was launched in 2020 to address concerns with the execution of the crop insurance plan. The Union Cabinet has approved a revision of the PMFBY and adjustments. Some of the features are:
- The Center has resolved to cap the PMFBY premium rates at a maximum of 30% in non-irrigated areas and 25% in irrigated areas, against which it would carry 50% of the subsidy.
- More Flexibility to States in implementing PMFBY and giving them the choice of a virtually unlimited number of extra risk coverage and features.
- Enrollment is completely voluntary, starting with the 2020 Kharif crop. Before, it was required of loanee farmers to open a Crop Loan/Kisan Credit Card (KCC) account for the designated crops.
- Investing in ICE Activities by insurance companies, as they are required to spend 0.5 percent of all premiums received on information, education, and communication (IEC) initiatives.
Pradhan Mantri Fasal Bima Yojana
The Pradhan Mantri Fasal Bima Yojana (PMFBY) is a government-sponsored crop insurance scheme that was launched on 18th February 2016. The scheme aims to provide financial assistance to farmers in the event of crop loss due to natural calamities. The scheme is open to all farmers, regardless of their income level or social status. Under the scheme, farmers are required to pay a premium of 2% of the sum assured for rain-fed crops, and 5% for irrigated crops. In the event of crop loss, farmers will receive a compensation of up to 75% of the sum assured. The scheme is implemented by the Ministry of Agriculture and Farmers’ Welfare.