Cabinet approves New Crop Insurance Scheme for farmers at low premium
Updated: Jan 13, 2016 05:48:36pm
New Delhi, Jan 13 (KNN) Following two consecutive drought years, the government today cleared the New Crop Insurance Scheme under which there will be a uniform premium of only 2 per cent to be paid by farmers for all Kharif crops and 1.5 per cent for all Rabi crops.
“Union Cabinet chaired by the Prime Minister Narendra Modi today has approved the ‘Pradhan Mantri Fasal Bima Yojana’ - a path breaking scheme for farmers’ welfare,” said a Cabinet release.
Under the scheme, there will be a uniform premium of only 2 per cent to be paid by farmers for all Kharif crops and 1.5 per cent for all Rabi crops.
In case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5 per cent.
“The premium rates to be paid by farmers are very low and balance premium will be paid by the Government to provide full insured amount to the farmers against crop loss on account of natural calamities,” said the Cabinet release.
Under the scheme, there is no upper limit on Government subsidy. Even if balance premium is 90 per cent, it will be borne by the Government.
Earlier, there was a provision of capping the premium rate which resulted in low claims being paid to farmers. This capping was done to limit Government outgo on the premium subsidy. This capping has now been removed and farmers will get claim against full sum insured without any reduction.
The use of technology will be encouraged to a great extent, said the Cabinet.
Smart phones will be used to capture and upload data of crop cutting to reduce the delays in claim payment to farmers. Remote sensing will be used to reduce the number of crop cutting experiments, the Cabinet release added. (With PIB Inputs)
“Union Cabinet chaired by the Prime Minister Narendra Modi today has approved the ‘Pradhan Mantri Fasal Bima Yojana’ - a path breaking scheme for farmers’ welfare,” said a Cabinet release.
Under the scheme, there will be a uniform premium of only 2 per cent to be paid by farmers for all Kharif crops and 1.5 per cent for all Rabi crops.
In case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5 per cent.
“The premium rates to be paid by farmers are very low and balance premium will be paid by the Government to provide full insured amount to the farmers against crop loss on account of natural calamities,” said the Cabinet release.
Under the scheme, there is no upper limit on Government subsidy. Even if balance premium is 90 per cent, it will be borne by the Government.
Earlier, there was a provision of capping the premium rate which resulted in low claims being paid to farmers. This capping was done to limit Government outgo on the premium subsidy. This capping has now been removed and farmers will get claim against full sum insured without any reduction.
The use of technology will be encouraged to a great extent, said the Cabinet.
Smart phones will be used to capture and upload data of crop cutting to reduce the delays in claim payment to farmers. Remote sensing will be used to reduce the number of crop cutting experiments, the Cabinet release added. (With PIB Inputs)
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