Which of the following statements most accurately captures a key reform introduced under the revamped Pradhan Mantri Fasal Bima Yojana (PMFBY) from Kharif 2020 onwards, particularly addressing issues of transparency and timely claim settlement?
Show answer & explanation
Correct answer: C
Explanation
Solution: The correct answer is Enrollment under PMFBY was made entirely voluntary for all farmers, and a Crop Insurance Portal with GPS-based Crop Cutting Experiments (CCEs) was introduced to reduce delays in claim settlement.
Explanation:
☛ The Union Cabinet approved the revamping of the Pradhan Mantri Fasal Bima Yojana (PMFBY) in February 2020, which came into effect from Kharif 2020.
☛ A major reform was making enrollment under the scheme completely voluntary for all farmers, including loanee farmers (earlier, it was mandatory for farmers taking institutional credit).
☛ To address claim delays and ensure transparency, technology-driven initiatives were strengthened, such as the National Crop Insurance Portal (NCIP) and GPS-enabled mobile applications (CCE Agri-App) to conduct Crop Cutting Experiments.
☛ The revamped guidelines also provisioned that states delaying the release of their share of premium subsidies beyond a prescribed cut-off date would not be allowed to run the scheme in subsequent seasons.
Extra Exam-Relevant Facts:
☛ Launch of PMFBY: Launched in February 2016 by replacing the National Agricultural Insurance Scheme (NAIS) and Modified NAIS.
☛ Farmer Premium Rates: Farmers pay a uniform maximum premium of 2% for Kharif food and oilseed crops, 1.5% for Rabi crops, and 5% for annual commercial/horticultural crops.
☛ Central Subsidy Cap: In the revamped scheme, the central subsidy is capped for premium rates up to 30% for unirrigated areas and 25% for irrigated areas.
☛ North-Eastern States: The central government increased its share in premium subsidy from 50% to 90% for North-Eastern states.
Important One-Liners for Upcoming Exams:
☛ In which year was the Pradhan Mantri Fasal Bima Yojana (PMFBY) launched? → 2016
☛ What is the maximum premium rate payable by farmers for commercial and horticultural crops under PMFBY? → 5%
☛ What is the maximum premium rate paid by farmers for Rabi crops under PMFBY? → 1.5%
☛ Under the revamped PMFBY, what is the Central Government's share of premium subsidy for North-Eastern states? → 90%
☛ Which mobile application was introduced for conducting transparent Crop Cutting Experiments under PMFBY? → CCE Agri-App