Page 46 - Insurance Times December 2018

Non-Life Insurance Plan

Pradhan Mantri Fasal

Bima Yojana (PMFBY)

from Shriram General Insurance

Company Limited

The Pradhan Mantri Fasal Bima Yojna (PMFBY) u Reduced Premium rate: As follows
was introduced on 14th January 2016, in a move aimed at
reducing agricultural distress and farmer's welfare without Eligibility
having to affect hefty hikes in the Minimum Support Prices All farmers including sharecroppers and tenant farmers
(MSP) of agricultural products prices due to Monsoon fluc- growing the notified crops in the notified areas are eligible
tuations induced risks The PMFBY Scheme operates on the for coverage. However, farmers should have insurable in-
basis of 'Area Approach' i.e., Defined Areas for each noti- terest for the notified/ insured crops. The non-loanee farm-
fied crop for widespread calamities. ers are required to submit necessary documentary evidence

of land records prevailing in the State (Records of Right
Key Features (RoR), Land possession Certificate (LPC) etc.) and/ or ap-
u Providing financial support to farmers suffering crop plicable contract/ agreement details/ other documents
loss/damage due to unforeseen events notified/ permitted by concerned State Government (in
case of sharecroppers/ tenant farmers).
u Stabilizing the income of farmers
u Encouraging farmers to adopt innovative and modern Compulsory Component
agricultural practices All farmers availing Seasonal Agricultural Operations (SAO)
u Ensuring flow of credit to the agriculture sector loans from Financial Institutions (i.e. loanee farmers) for
the notified crop(s) would be covered compulsorily.
u Three level of indemnity 70, 80 and 90
u Sum Insured equivalent to scale of finance Voluntary Component
u Scheme envisages many new things such as utilizing in- The Scheme would be optional for the non-loanee farmers.
novative technologies like satellite imagery, vegetation
indices etc. coupled with the mandatory usage of smart Coverage
phones / hand held devices for increasing the speed
Crop Coverage
and accuracy during yield estimation.
The crops that are covered under the PMFBY scheme are
u Digitization of CCEs including geo-tagging, date-time mentioned as below.
stamping and photographs 1) Food crops (Cereals, Millets and Pulses)
u Single series data for production estimates and insur- 2) Oilseeds
ance
3) Annual Commercial / Annual Horticultural crops.
u Access to Insurance Company for co-observance of
CCEs
Risk Coverage under PMFBY scheme
u Written information to IC about CCE schedule by State a) Prevented Sowing/ Planting Risk: When the Insured
Govt. area is prevented from sowing/ planting due to deficit
u Usage of RST, Drone and Mobile technology to aid CCEs rainfall or adverse seasonal conditions, claims up to
and yield assessment 25% of sum insured are payable to the farmers.

46 The Insurance Times, December 2018