Salient Features of Crop Insurance Schemes

Salient Features of Crop Insurance Schemes

Agriculture Insurance Company of India (AIC), 10 private General Insurance Companies namely,  ICICI-Lombard, IFFCO-TOKIO, HDFC-ERGO, Cholamandalam-MS, Tata-AIG, Future Generali India, Reliance, Bajaj Allianz, SBI and Universal Sompo General Insurance companies for implementation of crop insurance programme.  Share of AIC in terms of coverage of farmers has decreased during last three years. 

Salient features of National Crop Insurance Programme (NCIP)

The salient features of the National Crop Insurance Programme (NCIP) are :

Modified National Agricultural Insurance Scheme (MNAIS)

-      actuarial premium rates are charged with a provision of subsidy upto 75%, which is shared by the Central and State Governments on 50 : 50 basis;

-      entire liability of claims is on the implementing insurance companies;

-      it is compulsory for loanee farmers and optional for non-loanee farmers;

-      risk coverage for pre-sowing/prevented sowing and post harvest losses due to cyclone in coastal areas;

-      on account payment up to 25% advance of likely claims as immediate relief in the areas which suffered atleast 50% crop yield loss;

-      more proficient basis for calculation of threshold yield;

-      two higher indemnity levels of 80% & 90% instead of earlier 70%, 80% & 90%;

-      reduction in Unit Area of Insurance to village/ village Panchayat level; and

-      private insurance companies have been involved to provide the benefits of competition.

Weather Based Crop Insurance Scheme (WBCIS)

-      Provide coverage against weather deviation from the notified standards on the basis of weather data received from the notified Automatic Weather Stations (AWSs) and Automatic Rain-gauges (ARGs);

-      actuarial premium rates are charged with a provision of subsidy upto 50%, which is shared by the Central and State Governments on 50 : 50 basis;

-      entire liability of claims is on the implementing insurance companies;

-      it is compulsory for loanee farmers and optional for non-loanee farmers;

-      add on coverage in respect of hailstorm and cloud burst on individual assessment basis.

-      private insurance companies have been involved to provide the benefits of competition.

Coconut Palm Insurance Scheme (CPIS)

-      Individual farmer/planter/grower offering atleast 5 healthy nut bearing palms in a contiguous area/plot is eligible for insurance;

-      Provide coverage against total loss of palm on account of happening of peril insured leading to death of the insured palm or its becoming unproductive;

-      Fixed premium rates ranging from Rs. 9/- to Rs. 14/- per palm depending upon the age of palm.  However, Government is providing subsidy upto 50% by GOI and 25% by State Government;

-      Sum insured per palm is ranging from Rs. 900/- to Rs. 1750/-;

-      Scheme is being implemented by AIC.