{"id":111805,"date":"2021-06-11T18:39:38","date_gmt":"2021-06-11T13:09:38","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=111805"},"modified":"2021-06-12T10:05:55","modified_gmt":"2021-06-12T04:35:55","slug":"what-is-maharashtras-beed-model-of-crop-insurance","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/what-is-maharashtras-beed-model-of-crop-insurance\/","title":{"rendered":"What is Maharashtra&#8217;s &#8220;Beed model&#8221; of crop insurance?"},"content":{"rendered":"\n<h5><strong>What is the news?<\/strong><\/h5>\n<p>Maharashtra Chief Minister has asked the Prime Minister for state-wide implementation of the \u2018Beed model\u2019 of the Pradhan Mantri Fasal Bima Yojana (PMFBY).<\/p>\n<table style=\"width: 100%; border-collapse: collapse; background-color: #f7f2f2;\">\n<tbody>\n<tr>\n<td style=\"width: 100%;\">\n<p style=\"text-align: center;\"><strong>About Pradhan Mantri Fasal Bima Yojana (PMFBY)<\/strong><\/p>\n<ul>\n<li>The scheme was launched in 2016 by the <strong>Ministry of Agriculture and Farmers Welfare.<\/strong><\/li>\n<li><strong>Aim: <\/strong>To provide comprehensive insurance cover against failure of the crop thus helping in stabilising the income of the farmers.<\/li>\n<li><strong>Coverage of crops: <\/strong>It covers\n<ul>\n<li>food crops<\/li>\n<li>oilseed crops<\/li>\n<li>annual commercial\/horticultural crops<\/li>\n<\/ul>\n<\/li>\n<li><strong>Premium: <\/strong>The prescribed premium is\n<ul>\n<li>2% for Kharif crops<\/li>\n<li>1.5% for Rabi crops<\/li>\n<li>5% for commercial and horticultural crops.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Completely voluntary<\/strong>: The enrollment under the scheme is <strong>100% voluntary<\/strong> for all farmers.\n<ul>\n<li><strong>Earlier,<\/strong> the scheme was <strong>compulsory<\/strong> for loanee farmers.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align: center;\"><strong>Problems with the Scheme<\/strong><\/p>\n<ul>\n<li>Delay in claim settlement<\/li>\n<li>Failure to recognize localized weather events<\/li>\n<li>Stringent conditions for claims<\/li>\n<li>Alleged profiteering by insurance companies<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h5><strong>Why was the Beed Model of Crop Insurance launched?<\/strong><\/h5>\n<ul>\n<li><strong>Beed is a drought-prone district<\/strong> in Maharashtra. Farmers here have repeatedly lost crops either to failure of rains or too heavy rains.<\/li>\n<li>Due to this<strong>,<\/strong> insurance companies have sustained losses given high payouts. Moreover, the state government also had a difficult time getting bids for tenders to implement the scheme in Beed.<\/li>\n<li>Hence, the Maharashtra Government decided to <strong>modify<\/strong> the crop insurance guidelines for the district.<\/li>\n<\/ul>\n<table style=\"border-collapse: collapse; width: 100%;\">\n<tbody>\n<tr>\n<td style=\"width: 100%;\"><span style=\"color: #0000ff;\"><strong>Also read<\/strong><\/span>: <span style=\"color: #333333;\"><strong><a style=\"color: #333333;\" href=\"https:\/\/forumias.com\/blog\/flash-droughts-in-india\/\">Flash Droughts in India<\/a><\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h5><strong>What is the Beed Model of Crop Insurance?<\/strong><\/h5>\n<ul>\n<li>Under this model, the insurance company provides a cover of <strong>110% of the premium<\/strong> collected.<\/li>\n<li>In case the compensation amount <strong>exceeds the 110% mark<\/strong>, the state government would pay the bridge amount.<\/li>\n<li><strong>But if the compensation <\/strong>was less than the premium collected, the insurance company would keep 20% of the amount as handling charges and reimburse the rest to the state government.<\/li>\n<\/ul>\n<h5><strong>Benefits of Beed Model for Government<\/strong><\/h5>\n<ul>\n<li>In a normal season where farmers report minimal losses, the<strong> state government<\/strong> is expected to get back money that can form a corpus to <strong>fund the scheme<\/strong> for the following year.<\/li>\n<li>However, the <strong>state government<\/strong> would have to bear the <strong>financial liability<\/strong> in case of losses due to extreme weather events.<\/li>\n<li>Hence, in the model, the profit of the company is expected to reduce, and the state government would have <strong>access to another source of funds<\/strong>.<\/li>\n<\/ul>\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/explained\/what-is-the-beed-model-of-crop-insurance-maharashtra-is-pushing-for-7353522\/\"><strong>Indian Express<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is the news? Maharashtra Chief Minister has asked the Prime Minister for state-wide implementation of the \u2018Beed model\u2019 of the Pradhan Mantri Fasal Bima Yojana (PMFBY). About Pradhan Mantri Fasal Bima Yojana (PMFBY) The scheme was launched in 2016 by the Ministry of Agriculture and Farmers Welfare. Aim: To provide comprehensive insurance cover against&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/what-is-maharashtras-beed-model-of-crop-insurance\/\">Continue reading <span class=\"screen-reader-text\">What is Maharashtra&#8217;s &#8220;Beed model&#8221; of crop insurance?<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,1351,1310,7965,9],"tags":[1285,8058],"class_list":["post-111805","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-daily-news","category-daily-news-updates","category-miscellaneous-daily-factly-articles","category-public","tag-agri_0","tag-beed-model","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1700463605},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/111805","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=111805"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/111805\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=111805"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=111805"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=111805"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}