On 13 January the Government of India approved a new crop insurance scheme, named ‘’Pradhan Mantri Fasal Bima Yojana’’ (PMFBY), which will replace the previous scheme, with better conditions for farmers. The PMFBY will be launched from the forthcoming Kharif crop season starting June 2016. Under the new scheme, the farmers will pay only 2 percent of the premium fixed insurance companies for summer Kharif food and oilseeds crops and 1.5 percent for winter Rabi food and oilseeds crops, covering all cereals, millets, oilseeds and pulses. The rest of the premium will be paid by the Government. In case of commercial or horticultural crops (including cotton) the premium rate will be of 5 percent of the sum assured. Along with the relief on premium, the Government had decided to eliminate the capping mechanism on claim, allowing farmers to get the entire sum insured without any reduction. The use of new technology, such as smart phones and remote sensing, will be used to assess crop damages in the shortest possible time to reduce the delays in claim payment to farmers.