New crop insurance scheme

A new crop insurance scheme was approved by the Union cabinet on 13 jan 2016. Ever since the NDA formed the govt at the centre, it has launched a number of welfare schemes for various areas such as banking, pension, employment and insurance to the poor people of the country. Every thing was right but without the welfare of farmers India can’t go ahead, we know, agriculture employes nearly half of the employed people in the country. Thus the security and well being of farmers is of prime importance to the progress of the country. Having these facts in mind Pradhan Mantry Fasal Bima Yojana was launched on 13 jan 2016, perfect at timing, just ahead of Makar Sankranti – one of the main harvest festival celebrated in india.

This new scheme seems to have a lot potential, Government has launched a new crop insurance scheme - Pradhan Mantri Fasal Bima Yojana with considerable improvement over the existing National Agriculture Insurance Scheme. If implemented well, it could help delink agriculture from the associated uncertainties.

Design:

1) lo premium at a max of 2 per cent for foodgrains and oilseeds and up to 5 per    cent for horticulture/cotton crops.

2) Centre - State :: 50-50  equal subsidy burden.

3) The government will adopt modern technology to assess crop damage for early settlement of the claims. 

4) Farmers will get claim against full sum insured without any capping or deduction.

5) Smart phones will be used to capture and upload data of crop cutting to reduce the delays in claim payment to farmers.

How will the scheme Benefit Farmers:

1) With Low Premium rates and Total Coverage of Insurance of Crops, Farmers will benefit financially.

2) Widening of the term Disaster(like Flooding of Crops and Damage after Harvest) ,will widen the Protection base and hence beneficial to farmers.

3) Post Harvest Losses are also Included, So it will provide safety and confidence to the Farmers.

4) Time Bound Payment of Losses will prevent delays and further worsening of Farmers's Distress.

5) Will Reduce Farmers' Suicide (Since Crop Failure and Financial Distress earlier was undressed but now ensured).

6) Easy usage of technology like mobile phone, quick assessment of damage and disbursement within a timeframe.

The Scheme is a Laudable measure taken by Govt., as it is focussing more on Crop Insurance which is the most vulnerable part of agriculture. The scheme is Inclusive and will surely help the farmers of our country at the time of distress.