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(The Gist of PIB) PMFBY completes five years

(THE GIST OF PIB) PMFBY completes five years

Crop insurance scheme The Pradhan Mantri Fasal Bima Yojana (PMFBY) successfully completes 5 Years of operations on 13th January 2021.
Key achievements:
Average sum insured per hectare has increased from Rs. 15,100 during pre-PMFBY Schemes to Rs. 40,700 under PMFBY.
Scheme covers over 5.5 crore farmer applications year on year. Till date, claims worth Rs 90,000 crores have already been paid out.
Even during COVID lock down period nearly 70 lakh farmers benefitted.
PMFBY provides comprehensive crop insurance from pre-sowing to post-harvest period against non-preventable natural risks at a premium rate of 2% for kharif crops, 1.5% for rabi crops, 5% for horticulture and commercial crops.
Intended beneficiary: All farmers including sharecroppers and tenant farmers growing notified crops in a notified area (unit of insurance decided by state government).
Earlier this year, PMFBY was revamped to address existing challenges in their implementation.
Reforms include:
Making enrolment voluntary for all farmers. Earlier insurance was mandatory for loanee farmers.
Slashing central share of premium subsidy from 50% to 25% in irrigated areas and 30% for unirrigated areas.
Districts having 50% or more irrigated area will be considered as irrigated area/district.