Speaking to the media soon after the government made the announcement about the 'Pradhan Mantri Fasal Bima Yojna', Shah said the scheme will rid farmers of the web of complex rules of the earlier schemes and they can now avail maximum benefits.
"For years, farmers were caught in the complexities of existing insurance schemes and were not able to avail all benefits. Now the government has come out with a scheme under which they will be able to draw the maximum benefits by paying minimal premium.
In a swipe at the previous UPA government, Shah said it had introduced "capping" due to which farmers were given "very less" compensation while their premium had risen by anywhere between 22-57 per cent. This has been abolished now, he said.
Speaking about the premium of 2 per cent for kharif crops, 1.5 per cent of rabi and 5 per cent for commercial crops, he said it will result in an increase of 500 per cent in the Centre's financial load while benefiting farmers.
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In a statement later, Shah termed the decision a historic step.
It is a positive and expansive move to implement "safe crops, prosperous farmers" policy, he said, noting that the "revolutionary decision" came on the auspicious occasion of festivals like Lohiri, Pongal and Bihu.
The new scheme covers all kinds of damages caused to crops by natural causes, including water stagnation in farms, and also covers them post-harvest as well, he noted.
