The decision was taken in a meeting chaired by Prime Minister Narendra Modi.
The cabinet further approved revamping Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS).
The decision revamp was taken to address the existing challenges in implementation of Crop Insurance Schemes.
“With these changes, it is expected that farmers would be able to manage risk in agriculture production in a better way and will succeed in stabilizing the farm income,” said union minister Prakash Javedkar.
“Further, it will increase coverage in northeast enabling farmers of NER to manage their agricultural risk in a better way,” he added.
“These changes will also enable quick and accurate yield estimation leading to faster claims settlement,” Javdekar further said.
These changes are proposed to be implemented from Kharif’ 2020 season throughout the country.
The revamping plan further said that the allocation of business to insurance companies to be done for three years for both PMFBY and RWBCIS.
“Option shall be given to States/UTs to choose the scale of finance or district level value of notional average yield (NAY) minimum support price (MSP) as the sum insured for any district crop combination,” Javedkar added.
“Farmgate price will be considered for the other crops for which MSP is not declared,” he added.