Context:
Government has approved the continuation of Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather-Based Crop Insurance Scheme (RWBCIS) till 2025-26.
Pradhan Mantri Fasal Bima Yojana (PMFBY):
- Launched in – 2016, replacing the National Agricultural Insurance Scheme (NAIS)
- Objective – To provide insurance coverage and financial support to farmers in the event of crop failure due to natural calamities, pests, and diseases.
- Coverage – Includes all food and oilseed crops, as well as annual commercial/horticultural crops for which past yield data is available
- States can choose additional risk coverages and features
- Premium Rates –
- Kharif crops: 2% of the sum insured to be paid by farmers
- Rabi crops: 1.5% of the sum insured
- Annual commercial/horticultural crops: 5% of the sum insured
- Subsidy – The government bears the balance premium amount, ensuring that full insured amount is provided to farmers
- States must release their share of the premium subsidy on time to participate in subsequent seasons
- From Kharif 2020, enrollment is voluntary for all farmers
Restructured Weather-Based Crop Insurance Scheme (RWBCIS):
- Introduced in – 2016
- Aims to protect farmers from financial losses caused by adverse weather conditions.
- Covers various perils like drought, flood, cyclone, and hailstorm.
- Key Features –
- Provides insurance coverage for food crops, oilseeds, commercial, and horticultural crops.
- Aims to mitigate financial risks caused by weather anomalies.
- Eligibility – All farmers, sharecroppers, and tenant farmers growing notified crops in notified areas are eligible.
Comparison between Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather-Based Crop Insurance Scheme (RWBCIS):
| Feature | PMFBY | RWBCIS |
| Objective | Provides financial support to farmers in case of crop loss due to natural calamities. | Provides financial protection against weather fluctuations affecting crops. |
| Coverage Type | Covers actual crop loss assessment based on yield measurement. | Covers predefined weather parameters such as rainfall, temperature, humidity, etc. |
| Basis of Insurance | Based on actual crop yield measured through Crop Cutting Experiments (CCEs). | Based on weather indices like deficit/excess rainfall, temperature extremes, etc. |
| Claim Settlement | Based on yield loss assessment conducted by the government and insurance companies. | Based on deviation in predefined weather conditions recorded at weather stations. |
| Assessment Authority | Crop loss assessment conducted by State Governments, Joint Committees, and Insurance Companies. | Weather-based assessment conducted through IMD/authorized weather stations. |
| Risk Covered | Covers localized risks like drought, flood, pest infestation, hailstorms, etc. | Covers weather-related risks like unseasonal rainfall, heatwaves, cold waves, etc. |
Previous Year Question
Which one of the following best describes the main objective of Seed Village Concept?
[UPSC Civil Services Exam – 2015 Prelims]
(a) Encouraging the farmers to use their own farm seeds and discouraging them to buy the seeds from others
(b) Involving the farmers for training in quality seed production and thereby to make available quality seeds to others at appropriate time and affordable cost
(c) Earmarking some villages exclusively for the production of certified seeds
(d) Identifying the entrepreneurs in villages and providing them technology and finance to set up seed companies
Answer: (b)