Unified insurance package for farmers to cover life, accident, tractor & pump sets

To be launched on a pilot basis in 45 districts; will be scaled up later depending on response

For a premium of Rs 5,145 a year, farmers will be able to avail of bare minimum insurance cover for their crop, tractors, pump-sets, self and accidents under a united package, which is being rolled out along with the Pradhan Mantri Fasal Bima Yojana (Prime Minister's Crop Insurance Scheme).

The pilot for the united package, which comprises seven products, including the crop insurance scheme, will be first held in 45 districts and could be later scaled up depending on the response.

The Fasal Bima Yojana, on the other hand, has been launched for the entire country.

"Under the united package, any farmer who wants to avail the huge subsidy given under the new crop insurance scheme has to compulsorily go for any three components out of a total package of seven products. This would guarantee his full financial security," said a senior government official.

The Centre and state governments plan to subsidise up to 90% of the total premium a farmer has to pay under the new crop insurance scheme.

The seven insurance components apart from Fasal Bima Yojana in the united package are fire insurance; personal accident coverage of Rs 2 lakh under the Pradhan Mantri Suraksha Bima Yojana; agriculture pump-set insurance; agriculture tractor insurance provided by a third party; life insurance through Pradhan Mantri Jeevan Jyoti Bima Yojana; and student safety insurance.

The entire package will be offered by the state-run Agriculture Insurance Company, or any other general insurance company.

Drones, smart phones and other gadgets for crop cutting exercise will also be on a pilot basis in the Pradhan Mantri Fasal Bima Yojana.

Officials said a bare minimum annual insurance premium of Rs 5,145 has been calculated presuming an average holding of 1.5 hectares and a tentative insurance cover of Rs 20,000 a hectare.

The accidental coverage and the life coverage will be as provided by the already existing Pradhan Mantri Suraksha Bima Yojana and Jeevan Jyoti Bima Yojana.

That apart, officials said the existing weather-based crop insurance scheme (WBCIS), which was launched by the United Progressive Alliance government, would also be in circulation and is not being withdrawn.

The only difference is that henceforth, premium under WBCIS would have to be at par with the Fasal Bima Yojana, which is 1.5% for all rabi crops and 2% flat for all kharif crops.

"It is up-to the state governments, where they want WBCIS or opt for the new Fasal Bima Yojana," the official explained.

Plan Highlights

• Centre launches a unified insurance package for farmers alongside crop insurance scheme
• The unified package would be rolled out on a pilot basis in 45 districts of the country
• In the unified package, those farmers who opt for new crop insurance scheme will have to mandatorily take three or more other products that include life insurance under Pradhan Mantri Jeevan Jyoti Bima Yojana, accidental insurance under Pradhan Mantri Suraksha Bima Yojana, fire insurance, tractor insurance etc.
• The total annual premium of the package is estimated to be Rs 5,145 a year assuming crop insurance is for 1.5 hectares and sum insured is Rs 20,000 per hectare.
• The ongoing weather-based crop insurance scheme is not being discontinued. It is up to the states to opt either for WBCIS or new crop insurance scheme.