Crop insurance is yet a crucial form of finance safety used to mitigate farmers against the risk of crops failure caused by natural disasters, pests, or even when the prices of the commodities in question drops. The PMFBY is the flagship insurance scheme of the Government of India which seeks to provide crop insurance to farmers completely so that they do not have to bear any loss in case of crop failure. In this Blog, let us explore more about crop insurance, the kind available, and how PMFBY helps farmers of India.
What is Meant by Crop Insurance?
Crop insurance is an insurance product that agricultural producers buy with the view of being indemnified against losses resultant from disasters on crops by acts of God such as floods, drought or AIDS, hailstorms and sometimes adverse changes in the prices of agricultural commodities. This insurance minimizes the impacts of risks that are associated with farming and thus provides the farmer with financial capacity to go back to farming after being affected.
How Many Types of Crop Insurance Are There?
There are three main types of crop insurance:
- Multiple Peril Crop Insurance (MPCI):
As the name suggests, the following type of insurance provides compensation for losses arising out of flood, draught, pestilence and other acts of god. - Actual Production History (APH):
This insurance compensates for a current production level below historical levels according to the farmer’s yield records. - Crop Revenue Coverage (CRC):
This type includes yield losses and price risks to guarantee the farmers receive set minimum amounts of money regardless of the state of the market.
Are Farmers Covered Under PMFBY?
Yes, farmers in India are protected through, Pradhan Mantri Fasal Bima Yojana (PMFBY, which was launched in 2016. It is a state-funded crop insurance programme that pays for losses arising from crop failure as a result of natural disasters, pests and diseases. The scheme has been launched to ensure affordable crop insurance with specialization in reaching out to small and marginal farmers.
Key Features of PMFBY:
- Coverage: PMFBY entails all non-avoidable acts of nature from planting season right up to harvesting and other catastrophes including hailstorm, landslide or flood.
- Premium Rates: The premium is heavily subsidized and the present rates are standard of 2% Kharif crops, 1.5% Rabi crops, 5% and commercial and horticulture crops.
- Compensation: This compensation is paid with reference to the area sown, the type of crop planted and the degree of damage and there isn’t any ceiling on the amount government can subsidize.
- Voluntary Participation: The program is mostly for the willing farming, but the loanee farmer which is the farmer that has taken a farming loan is compelled to participate.
Crop Insurance App
Several mobile apps, including the PMFBY app, enable farmers to access their crop insurance services. Through the app, farmers can:
- Apply for crop insurance
- Check their application status
- Track claims
- Receive updates on policy details
These apps ensure that the process is streamlined, and farmers can get timely assistance for filing and processing claims.
Crop Insurance Claim
To file a crop insurance claim, farmers need to follow these steps:
- Report the Loss: The loss should be reported to the insurance provider without delay so as to alert him on crop damage.
- Submit Documents: Farmers are to submit a number of different documents including but not limited to the crop insurance policy, the proof of loss and any reports from the local authorities that may be required.
- Claim Assessment: Insurance management will assess the damage done and come up with the compensation sum to award.
- Payment: On approval, the compensation will be paid directly to the farmers account and the notification has been included as follows:
Crop Insurance Status
Through the insurer’s website or the application of the insurer on a farmer’s handset, the farmer may need to input the policy details in order to know about the status of the crop insurance claim. This feature acts not only to make the entire claim process open and honest but also to provide updates in the statuses of farmer’s claim.
Conclusion
Crop insurance is a useful concept for increasing the stability of farmers, and with the uncertain weather conditions many farmers face in a country like India, it is a necessity. The PMFBY is an innovative model that a farmer-friendly that enables crop insurance across the length and breadth of the country at reasonable cost and with all risk coverages. Incorporating technological innovation and also, using gender equality and other social inclusion strategy, PMFBY is thus building protection for millions of farmers and enhancing India’s agricultural market.
The Way Forward
Being an agricultural-based country, India needs to support sustainable practices which are possible only through such programs like PMFBY. In future, increased cooperation with the insurance companies, state governments and the farmers will only enhance the efficacy of these crop insurance schemes and increase the sustainability of Indian farmers.