PMFBY 2.0: A revamped crop insurance scheme -Amit Mohan Prasad
-The Indian Express
The recent tweaks to the Pradhan Mantri Fasal Bima Yojana, including making it 100% voluntary and capping premiums at 30%, are going to be a game-changer.
The Centre has recently revamped the Pradhan Mantri Fasal Bima Yojana (PMFBY) that will have far-reaching impact on the implementation of this flagship crop insurance scheme. Launched in the 2016 kharif season, PMFBY makes the insurance companies liable for full risk coverage. Farmers pay a nominal 2% premium rate on the sum insured (the maximum amount that insurance would give in the event of damage) for all kharif crops, with these at 1.5% for rabi and 5% for annual and horticultural crops. The balance premium, vis-à-vis the actuarial rate based on statistical risk assessment, is paid as subsidy to the companies and shared between the Centre and the states on a 50:50 basis.
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The Indian Express, 27 February, 2020, https://indianexpress.com/article/india/pmfby-2-0-a-revamped-crop-insurance-scheme-6288647/