-TheWire.inMaking crop insurance mandatory for loanee farmers provided an attractive deal for insurance companies. Without this, will the business still be viable?
This is the first in a two-part series about the changes made to the Pradhan Mantri Fasal Bima Yojana.
This is the first in a two-part series about the changes made to the Pradhan Mantri Fasal Bima Yojana.
On February 19, 2020, the Union Cabinet approved major modifications to the two crop insurance schemes, the Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS).
While the former provides insurance on the basis of guaranteed crop yield, the latter provides coverage on the basis of weather parameters, irrespective of the yield of crop.
The two schemes were launched in 2016 and there were major modifications in guidelines in 2018. The implementation of the overall project has attracted criticism from farmers, some state governments and the media for delay in settlement of claims and inadequate pay outs in the event of losses.
Please click here to read more.