In January 2016, the NDA Government launched a new Crop scheme Pradhan Mantri Fasal Bima Yojana which tries to improve upon the models used so far.
The main motto of this crop insurance scheme is to provide a more efficient insurance support to the farmers of the country and become a financial support to thousands of farmers. Govt. has decided to provide low premium insurance cover to the farmers so that they can sustain even if the yield is damaged. The total budget estimate for flooring this project is estimated to be approximately Rs.17,600 crores.
The benefits of this scheme include:
- With low premium rates and total coverage of insurance of crops, farmers will benefit financially.
- Widening of the term ‘disaster’ (like Flooding of Crops and Damage after Harvest) ,will widen the Protection base and hence beneficial to farmers.
- Post-Harvest losses are also included, so it will provide safety and confidence to the farmers.
- Time Bound Payment of losses will prevent delays and further worsening of farmers’ distress.
- Will reduce farmers' suicide since crop failure and financial distress earlier was undressed but now ensured under this scheme.
- Easy usage of technology like mobile phone, quick assessment of damage and disbursement within a timeframe.
Success of any government scheme depends on its sincere implementation. The key problems such as poor land records, flawed land titles, corruption etc. are common challenges any crop insurance scheme in India faces. Further, the success of the scheme depends on how sincerely it is implemented by the insurance companies.
- Bhavya Bhatia