Pradhan Mantri Fasal Bima Yojana (PMFBY)

Prime Minster Fasal Bima Yojana

Pradhan Mantri Fasal Bima Yojana (PMFBY)

Q.1 Pradhan Mantri Fasal Bima Yojana (PMFBY) launched in which year? (IBPS-AFO 2019)

• 2016
• 2015
• 2014
• 2017
• 2018

Q.2 What is premium rate for all commercial and Horticulture crop Under PMFBY? (IBPS-AFO 2018 & 2019)

• 5%
• 2%
• 3%
• 1%
• 4%

Q.3 What is the uniform premium rate for all Rabi crops as per PMFBY? (IBPS-AFO 2019 & 2020)

• 1.5%
• 2%
• 3%
• 1%
• 4% 

Q.4 In PMFBY, What is the uniform premium rate for all oil seeds crops? (IBPS-AFO 2019)

• 1.5%
• 2%
• 3%
• 1%
• None of these

Q.5 Under Pradhan Mantri fasal Bima Yojana the premium interest % paid by farmer for kharif crops? (IBPS-AFO 2018)

• 1.5%
• 2%
• 3%
• 1%
• 4% 

The Pradhan Mantri Fasal Bima Yojna was launched on 18th February 2016 by Prime Minister Shri Narendra Modi. 21 states implemented the scheme in Kharif 2016 whereas 23 states and 2 UTs have implemented the scheme in Rabi 2016-17. 

Rate of Premium to be paid by the farmer to Insurance Company

Objectives:- 

1. To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests & diseases.
2.  To stabilize the income of farmers to ensure their continuance in farming.
3.  To encourage farmers to adopt innovative and modern agricultural practices.
4. To ensure flow of credit to the agriculture sector.

Yield losses:- 

1. Natural Fire and Lightning
2. Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado etc.
3. Flood, Inundation and Landslide
   
4. Drought, Dry spells
   
5. Pests/ Diseases
   
6. Loss due to attack by wild animals

Coverage of Crops:

• Food crops (Cereals, Millets and Pulses).
• Oilseeds
• Annual Commercial / Annual Horticultural crops.
• In addition, pilots for coverage can be taken for those perennial horticultural/commercial crops for which standard methodology for yield estimation is available.

Premium Rates in Pradhan Mantri Fasal Bima Yojana

* Premium paid by non loanee farmers should be rounded off in Rupee terms

One Nation – One Scheme: best features of all previous schemes incorporated + all previous shortcomings / weaknesses removed

Previous Crop Insurance Schemes

1. 1985- Comprehensive Crop Insurance scheme
2. 1999- National Agricultural Insurance Scheme
3. 2007- Weather based crop insurance scheme
4. 2010- Modified National Agricultural Insurance

Unit of Insurance

1. The difference between the premium paid by farmers and the actuarial premium charged was paid by the Centre & state government in the ratio of 50:50.
2. The PMFBY replaces two schemes National Agricultural Insurance Scheme as well as the Modified NAIS.
3. Under PMFBY, there will no upper limit on government subsidy and even if balance premium is 90%, it will be borne by the government.