Union finance minister Arun Jaitley on Tuesday launched the Pradhan Mantri Fasal Bima Yojana and Unified Package Insurance Scheme in Mumbai.
The revamped schemes would help farmers insure their crops against natural calamities in an efficient way because insurance companies will reverse bid for higher sum insured and lower premium.
Uttarakhand became the first state to adopt this scheme as insurance companies bid for a 2% premium.
Both schemes would target crop insurance as well as accidental insurance for farmers, insurance for tractors as well as farm equipments.
With the country having suffered two back to back poor monsoons the FM launched this programme saying that its success should remove the blot on the government that it has done nothing to protect the livelihood of the farmers.
"This scheme would enable the farmer to pay less and in the event of crop failure will allow him to get paid more. This scheme will give volumes hence would require lesser amount as premium from farmers," said Jaitley.
Launching the scheme the minister said that with 50% of the farmers being targetted for coverage under the scheme.
He also added that these schemes are a part of the government's efforts to convert India into an insured and pensioned society.