How is the sum insured of PMFBY scheme decided?
Sum insured will be equal to the Scale of Finance as decided by the District Level Technical Committee. This will be pre-declared by the State Level Coordination Committee on Crop Insurance (SLCCCI) and will be notified. There will be no other applicable calculation of Scale of Finance. Therefore, the sum insured for every individual farmer would equal to the Scale of Finance per hectare multiplied by area of the notified crop proposed by the farmer for insurance.
Note: Hectare will be used for unit of scale to measure the farmer’s area under cultivation. The sum insured per hectare for loanee and non-loanee farmers will be the same. However, the sum insured for irrigated and un-irrigated areas may be separate.