Crop Insurance Scheme | Fasal Bima Yojana
Crop Insurance Scheme was introduced by the government of India to secure the farmers from natural calamities and other kinds of disasters destroying their crops. The premiums to be paid by the farmers in this scheme are just 1.5% of the sum assured for the entire rabi crops and 2% for the kharif crops.
This scheme don’t have any cap on the whole rate of premium to ensure the full claim that means there will be no upper limitation on the grant the provided by the government towards the balance premium.
Objectives of the new Crop Insurance Scheme
The scheme was launched to offer insurance coverage as well as financial backing to the poor farmers during natural calamities, diseases and pest attacks. The scheme will assist farmers of all regions to accept practices of progressive farming and using technology in the Agricultural field. This scheme will also help farmers to alleviate their farm incomes, principally in years of disaster.
Prominent Features of Crop Insurance Scheme
Yearly Horticultural crops/ Annual Commercial crops subject to data availability will also be covered for three years. Though, the crops to be covered in the following year have to be mentioned before the conclusion of the previous year.
Covered Union Territories and States
The Scheme is application to all Union Territories and States. The UTs/States opting for this Scheme will be needed to adopt all the entire crops recognized for covering in a specified year. The Union Territories/ States once opted for this Scheme have to carry on the same for at least three years of period.
Which Farmers are covered?
All farmers together with tenant farmers and sharecroppers growing the crops in the entitled areas are qualified for coverage through this scheme and also those farmers who are benefiting from the SAO loans can be benefitted from this scheme.
Exclusions and Risks covered
Comprehensive risk coverage will be given to the farmers over the losses caused due to natural calamities such as Lightning, Natural Fire, Storm, Cyclone, Hailstorm, Typhoon, and so on.
Sum insured in Crop Insurance Scheme
The Sum of the coverage may expand to the worth of the insured crops depending on the preference of the farmers. On the other hand, a farmer might also insure the crop beyond the value of the threshold yield up to 150 percent of the normal yield of reported area on the payment of the premium at marketable rates. In the instance of the farmers with SAO Loans, the Sum covered would be at least equivalent to the quantity of the crop loan. Additionally, in case of the farmers with SAO loans, the Charges of the Insurance should be an additional element to the Finance Scale for the intention of getting loan.