Pradhan Mantri Fasal Bima Yojana, a crop insurance scheme is all set to take off from April 1st, 2016. Under the new crop insurance scheme, the Government aims to more than double the insurance coverage in next couple of years.
As of now, only about 23% of the farmers are covered under any kind of crop insurance scheme, but the government is targeting to take the number to 50% in next 2 years.
The scheme will be implemented from 1st April 2016 for which the government will be setting up 5000 automated weather stations through PPP mode across the country.
The government has empaneled 11 non-life insurance companies including the state-owned specialized agriculture insurer Agriculture Insurance Company for providing Fasal Bima to the farmers.
Under the Pradhan Mantri Fasal Bima Yojana, the farmers needs to pay a premium based on “one season one premium”. To get the crops insured, the farmers will need to pay 1.5% of the cost of the crop as premium for Rabi crops and 2% for the Kharif crops.
The existing crop insurance scheme of AIC will be merged into the PMFBY.