When I enrolled, the bank kept talking about scale of finance and sum insured as if they are the same. Are they?
What is the difference between sum insured and scale of finance in PMFBY?
HHarpreet Singh6 महीने पहले · 220 व्यू
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🌾Farmer.in Krishi Teamविशेषज्ञ ✓6 महीने पहले
They are linked but not the same. Under PMFBY the sum insured per hectare for most crops is set equal to the Scale of Finance for that crop in your district, as decided by the District Level Technical Committee. So the Scale of Finance is the per-hectare cost figure the committee fixes for paddy, wheat, cotton and so on, and PMFBY usually adopts that same number as the sum insured, meaning the maximum amount you can be paid per hectare if the crop fully fails. Your premium is then a percentage of this sum insured. Two practical points follow. First, because sum insured tracks the Scale of Finance, a crop with a higher Scale of Finance gives both a higher possible claim and a higher rupee premium. Second, the same crop can have a different sum insured in two neighbouring districts because each district committee fixes its own Scale of Finance. Confirm the current Scale of Finance and sum insured for your crop and district on the PMFBY portal or with your bank, as these are revised each year.
JJasvir6 महीने पहले
Iska matlab agar scale of finance badhega to sum insured bhi badhega aur claim bhi zyada milega. Maine apne district ka scale of finance agriculture office se le liya tha.
MManjit Singh6 महीने पहले
In Punjab my paddy sum insured and the KCC scale of finance for paddy were nearly identical. That is when I understood the bank was using the same figure for both.