Prevent Loss-Insure your Crop-PMFBY Scheme

As per our earlier post on massive debt issues,most of the farmers are facing the debt crisis.Even though they try to come out of such massive debt my indulging in more crop cultivation to get maximum income to repay loans,due to various reasons like diseases,natural calamities,pests they incur loss in their cultivation and ultimately this loss adds to their existing debt/loan issues.So farmers are in a never ending loan loop which increases day by day.This is the main reason for majority of the suicides that is happening among farmers in India.

Today through this post I will be sharing you a very important finance protection tip which will help you or save you from such a big debt/loan trap.That is Crop insurance.The Government of India wants to help farmers for preventing crop losses .Hence formulated a scheme which is Pradhan Mantri Fasal Bima Yojana(Prime Minister's Crop Insurance scheme) which is very much beneficial for farmers.

Since it is a Government scheme,this insurance is not for profit making.Hence the premiums are very cheap.

Before proceeding further you need to understand that,this insurance is not for profit.You should not expect any profit from it.It should be treated as a ritual to your god (before commencing your farming activities)to save you from financial losses.If nothing bad happened,god saved you.If anything bad happened,insurance will save you from financial losses.You will be saved in either way.But you should not expect the return of the premium you paid.It should be treated as an expense of the ritual to your God.

Why I am saying this is that,many farmers are shying away from insurance by seeing the insurance premium amount.They suffer huge loss if  anything bad happens and fall in debt trap.

Many farmers are not aware of this scheme and hence leave their chances to the weather conditions.You should not indulge in farming in this way.You should have a proper risk management mechanism and insurance is one of the key area in this.

The Objective of the scheme is to provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests & diseases.

You can get more details of the Pradhan Mantri Fasal Bima Yojana(Prime Minister's Crop Insurance scheme) from official government website https://pmfby.gov.in/

Please refer detailed guidelines given  in the link https://pmfby.gov.in/guidelines

You can get the Bank details of this scheme from this link.https://pmfby.gov.in/bankBranchDirectory. You can enquire about this scheme by visiting the branch also.

The insurance premium is 2 to 3% of the total sum insured. You can calculate the premium by using the calculator  in the link https://pmfby.gov.in/

Do not consider the premium paid as a loss of money if nothing bad happened. It is part of  your risk management and debt/loan escape plan.

Take this insurance as a mandatory step before starting your farming activity.You will be saved.

Disclaimer: Request you to read the terms and conditions of the scheme and insurance before opting for it.Understand the same by asking questions to the officials.You can get knowledge about this scheme from Banks(given in the bank list of pmfby site) ,KVKs and krishi Bhavans also. Understand it thoroughly how it will help you and then go for it.This post is for knowledge purpose only.My intention is to provide you information so that you can take your own decision. I am not responsible for any loss occurring to you in any form.

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