Agriculture` Insurance is a comprehensive yield-based policy meant to compensate farmers’ losses arising due to production problems. It covers pre-sowing and post-harvest losses due to cyclonic rains and rainfall deficit. These losses lead to reduction in crop yield, thus, affecting the income of farmers. In India, Agriculture insurance is offered in the form of Pradhan Mantri Fasal Bima Yojna.
What is Pradhan Mantri Fasal Bima Yojna?
Pradhan Mantri Fasal Bima Yojna is a crop insurance scheme sponsored by the Government of India. The policy was launched in 2016. It aims to provide financial aid to farmers in case of crop loss or damage. Thus, it helps to reduce farmers’s stress and keep them motivated to continue with farming as an occupation.
There are two scenarios in which the claim can be processed – I) Wide Spread Calamities and II) Local Calamities
In the first case, the company would work out the claim settlement once the government puts forth actual yield data. The company would directly settle the claim with the insured without any intimation from the policyholder.
In the case of local mishap, the insured (i.e. the farmer) is required to intimate to the company not later than 24 hours of the event. This can either be done via concerned financial institution or directly.
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