How can farmers determine the sum insured for their crops under the Pradhan Mantri Fasal Bima Yojana (PMFBY)?

To determine the sum insured for their crops under the Pradhan Mantri Fasal Bima Yojana (PMFBY), farmers can follow the guidelines provided by the scheme. Here is the process:

1. Crop Cutting Experiments (CCE) Data:

The sum insured is determined based on the average yield per hectare obtained from Crop Cutting Experiments (CCE) conducted by the government. These experiments gather data on crop yield from sample areas to estimate the overall production.

2. Scale of Finance:

The government provides a fixed Scale of Finance (SOF) for each notified crop in a specific area. This scale represents the cost of cultivation per hectare, including inputs like seeds, fertilizers, labor, etc. Farmers can use the SOF as a reference to estimate their sum insured.

3. Loan Amount:

If farmers have taken loans for agricultural purposes, the sum insured can be determined based on the loan amount sanctioned by the bank. The sum insured is usually set at the loan amount or a percentage of it, as per the guidelines of PMFBY.

4. Premium Calculation:

The premium amount payable by the farmer is a percentage of the sum insured. The premium rates are subsidized by the government, making it affordable for farmers. The exact premium rate for a specific crop and region can be obtained from the insurance company or bank.

5. Consultation with Insurance Company/Bank:

Farmers can also consult with the insurance company or bank from which they are availing the PMFBY to determine the sum insured for their crops. These institutions have trained professionals who can provide guidance and help farmers understand the process better.

It is essential for farmers to keep records of their crop details, including the area cultivated, crop variety, and other relevant information, as these details will be required during the sum insured calculation process.

Additionally, staying updated with the guidelines and announcements made by the government regarding PMFBY can help farmers make informed decisions regarding their sum insured.


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