The new crop insurance namely – Pradhan Mantri Fasal Bima Yojana (PMFBY) will be tough with the insurance companies, states which do not stick on to its rules. Ashish Kumar Bhutani, Joint Secretary, Ministry of Agriculture & Farmers’ Welfare, Government of India said that a policy of ‘one season one rate’ will be followed.
PMFBY will have actuarial yield-based plan with the stipulation for upfront premium subsidy to be free to insurance companies. The sum insured will be same for both loanee and non-loanee farmers. Also, there will be no limitations and there will be the full claim amount paid against the sum insured.
This plan will also cover localised risks like inundation and post crop losses. A comprehensive protocol for evaluation of losses and payment of claims for post-crop losses, prevented sowing and localised risks will be followed. Speaking at an agriculture insurance seminar, Bhutani said that they will persist to use technology like remote sensing so that dodging of data can be avoided.
He added that no extension would be permissible. “There will be strict adherence to seasonality discipline and no extensions can be allowed. If a state decides to give extensions, it will have to bear the entire cost of the subsidy,” he added.
The government is planning to use Rs 5500 crore for the crop insurance plan that was announced earlier. In his budget speech finance minister Arun Jaitley said that the farmers will pay a nominal premium for the coverage.