It will replace 2 schemes: National Agriculture Insurance Scheme (NAIS) and modified NAIS.
It was launched along with 2 schemes: Weather Based Crop Insurance Scheme (WBCIS) and restructured pilot UPIS (Unified Package Insurance Scheme).
Provide insurance coverage,
Stabilize (not double) income of farmers,
Encourage farmers to adopt innovative and modern agriculture practices and
Ensure flow of credit to Agri sector.
Uniform premium of 2% forallKharif crops, 1.5% forallRabi crops and 5% forallcommercial and horticulture crops.
No upper limit on Government subsidy. Earlier there was a capping but now the farmers will get claim against full sum insuredwithout any reduction.
Even for the 1st time, Post harvest losses are also covered.
‘Area Approach basis’. Use of technology for 1st time - smart phones, remote sensing.
Compulsory for Loanee farmers and Voluntary for other farmers. Now voluntary for all Farmers.
Centre hashalved its contributionto Crop Insurance Schemes - PMFBY. Share of premium subsidy from current 50% to just25% in irrigated areas and 30% for unirrigatedareas.
The Pradhan Mantri Fasal Bima Yojana (PMFBY) is available for all States/UTs and farmers whether loanee, non-loanee, share cropper or tenant farmers on voluntary basis.
The concerned State Government notifies the crops and areas under the Scheme. Therefore, benefits of the scheme are available to all those farmers who are growing notified crops in areas/insurance units notified by the concerned State Government.
Based on the experience gained, views of various stakeholders and with a view to ensure better transparency, accountability, timely payment of claims to the farmers and to make the scheme more farmer friendly, Government has comprehensively revised and revamped the Operational Guidelines of the Pradhan Mantri Fasal Bima Yojana (PMFBY) with effect from Rabi 2018 and Kharif 2020 respectively to ensure the targeted delivery of benefits of the scheme to the farmers adequately and timely.
Further, National Crop Insurance Portal (NCIP) has been developed for ensuring better administration, co-ordination, transparency, dissemination of information and delivery of services including direct online enrollment of farmers, uploading/obtaining individual insured farmer’s details for better monitoring and to ensure transfer of claim amount electronically to the individual farmers Bank Account. To ensure timely payment of claims, use of smartphone/CCE-Agri App for real time transfer of data on national crop insurance portal has been initiated. Crop Insurance app has also been launched, on which farmers can enroll themselves under the scheme, track their crop insurance and get all information about it.
Penalty provisions @12% per annum for late settlement of claims by insurance companies and late release of funds by State Governments have also been stipulated under the scheme.