About Pradhan Mantri Fasal Bima Yojana (PMFBY)

• PMFBY, launched in 2016, provides a comprehensive insurance cover against crop damage or loss arising out of unforeseen events.
• The scheme is administered by the Ministry of Agriculture and Farmers’ Welfare.
• Crops covered: Oilseed crops; all food crops; Annual commercial/horticultural crops.
• Premium: There will be a uniform premium of 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops. For annual commercial and horticultural crops, the premium to be paid by farmers will be 5%.
• The balance premium is shared by the Central and State Government on a 50:50 basis and 90:10 in case of North Eastern States.

• Coverage: It aims at covering the losses suffered by farmers such as pre-sowing losses, post-harvest losses due to cyclonic rains and losses due to unseasonal rainfall in India. It also covers losses due to localized calamities such as inundation, hailstorm and landslide risks. 
• Exclusions: The losses arising out of war and nuclear risks, malicious damage and other preventable risks are not covered under this scheme.
• The scheme is implemented by empanelled general insurance companies. The funds for the scheme come from the Krishi Kalyan Kosh.

• In 2020, the Union Cabinet made the enrolment in the scheme voluntary for all farmers, including those with existing crop loans. Earlier it was mandatory for loanee farmers to take insurance cover under this scheme.

About Restructured Weather Based Crop Insurance Scheme (RWBCIS)

• RWBCIS aims to mitigate the hardship of the insured farmers against the likelihood of financial loss on account of anticipated crop loss resulting from adverse weather conditions relating to rainfall, temperature, wind, humidity etc. 
• RWBCIS uses weather parameters as “proxy” for crop yields in compensating the cultivators for deemed crop losses.

Why in News?

• The Union Cabinet has approved continuation of the Pradhan Mantri Fasal Bima Yojana and Restructured Weather Based Crop Insurance Scheme till 2025-26 with an overall outlay of around Rs.70,000 Crore from 2021-22 to 2025-26. 
• The decision will help in risk coverage of crops from non-preventable natural calamities for farmers across the country till 2025-26. 
• In addition to the same, for large scale technology infusion in implementation of the scheme leading to increasing transparency and claim calculation and settlement, the Union Cabinet has also approved creation of Fund for Innovation and Technology (FIAT).
• The fund will be utilised towards funding technological initiatives under the scheme as well as Research and Development studies. 

https://pib.gov.in/PressReleasePage.aspx?PRID=2089249