Page 25 - Insurance Times April 2017 Special Issue on Newindia

(AIC) of India was allowed to implement the scheme but
now, private insurers were also allowed to implement the
modified scheme. Further, the unit area was reduced to be
the Gram Panchayat. The MNAIS tried to modify several
issues with the crop insurance but still failed to reduce the
farmer distress.

The key problems of this scheme was that - it covered risks
partially, it had higher premium rates (3.5% for Kharif Crops
and 1.5% for Rabi Crops), the coverage was capped (this
implies that farmers could recover at best a fraction of the
total loss). In 2007, another crop insurance scheme was
launched Weather-based Crop Insurance Scheme (WBCIS).
This was another scheme to protect farmers against
vagaries of nature such as deficit and excess rainfall, high
or low temperature, humidity, etc. This scheme was
launched to settle claims in shortest possible time. Both more crop area to protect farmers from vagaries of
these schemes (MNAIS and WBCIS) were made compulsory monsoon.
for loanee farmers. While former indemnified the cultivators
against shortfall in crop yield; later protected against How will the scheme benefits the
adverse weather conditions.
farmers?
Pradhan Mantri Fasal Bima Yojana  With Low Premium rates and Total Coverage of
Insurance of Crops, Farmers will benefit financially.
(PMFBY)
 Widening of the term Disaster(like Flooding of Crops
Transforming Indians Farmers Destiny and Damage after Harvest) ,will enlarge the protection
Pradhan Mantri Fasal Bima Yojana Pradhan Mantri Fasal base and hence beneficial to farmers.
Bima Yojana (PMFBY) is the new crop damage insurance
 Post Harvest Losses are also Included, So it will provide
scheme that has been approved by the Union Cabinet in
safety and confidence to the Farmers.
January 2016. It is one of the major initiatives and Farmers
Friendly launched by the Present BJP government for the  Time Bound Payment of Losses will prevent delays and
farmer's welfare. A destiny changer for the farmers of further worsening of Farmers's distress condition.
India. It clearly indicates how our present government is  Will Reduce Farmers' Suicide (Since Crop Failure and
seriously concerned for alleviating the problems of our Financial Distress earlier was undressed but now
farming communities in India and wants to provide every ensured).
help to them possible, who are the backbone of Indian
 Easy usage of technology like mobile phone, quick
Economy.
assessment of damage and disbursement within a
timeframe.
New crop insurance scheme will bring about a major
transformation in the lives of farmers. A great initiative to
It will replace the existing two crop insurance schemes
transform Indian farming life style. The Scheme is a
National Agricultural Insurance Scheme (NAIS) and the
laudable measure taken by Govt., as it is focussing more
Modified form of NAIS. The new scheme will come into
on Crop Insurance which is the most vulnerable part of
force from the Kharif season starting in June this year.
agriculture. The scheme is Inclusive and will surely help the
farmers of our country at the time of distress. The new
scheme is significant as the country is facing drought for Crops covered
the second straight year due to poor monsoon rains and The scheme covers kharif, rabi crops as well as annual
the government desire to enhance insurance coverage to commercial and horticultural crops. For Kharif crops, the

The Insurance Times, April 2017 25

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