Crop Insurance Schemes: Highlights

Crop Insurance Schemes: Highlights

Question: Agriculture Insurance Company of India and other revenant insurance bodies have joined hands for the National Crop Insurance Programme. Highlight the schemes which are part of the programme.

National Crop Insurance Programme

This programme has the following schemes:

Modified National Agricultural Insurance Scheme

- Actuarial premium rates are charged with provision of subsidy leading up to 75% shared by Central and State Government on 50:50 basis

- The complete liability of claims will be on implementing insurance firms

- This scheme is mandatory for loanee farmers and optional for non-loanee farmers

- Risk coverage for pre-sowing/prevented sowing and post harvest losses caused on account of cyclones in coastal areas

- On account payment up to 25% advance of likely claims as rapid relief in areas where there has been at least 50% crop yield loss

- There is a more proficient basis for calculating threshold yield

- Two higher indemnity levels of 80 and 90% instead of earlier 70, 80 and 90 percent

- Reduction in unit area of insurance to village/village Panchayat levels

- Private insurance companies have been involved for creating benefits of competition

Weather Based Crop Insurance Scheme

- Provide coverage against deviation in weather from notified standards on account of weather data received from the Automatic Weather Stations and Automatic Rain Gauges

- Actuarial premium rates are charged with a provision of subsidy up to 50% shared by Central and State governments on 50:50 basis

- Entire liability of claims is in regard to implementation of insurance companies

- This scheme is also mandatory for loanee farmers and optional for non-loanee farmers

- Add on coverage in accordance with hailstorm and cloud burst on individual assessment basis

- Private insurance firms have been involved for providing benefits of competition

Coconut Palm Insurance Scheme

- This includes individual farmer/planter/grower providing at least 5 healthy nut bearing palms in contiguous area/plot is suited for insurance under these scheme

- Coverage will be provided under total loss of palm on account of happening of peril insured leading to death of the insured palm or its turning non-productive

- Fixed premium rates range from INR 9 to 14 per palm based on its age. GoI provides 50% subsidy and State government provides 25% subsidy

- Sum insured per palm ranges from INR 900 to INR 1750

- Scheme is implemented by AIC

Facts and Stats

- Agriculture Insurance Company of India, 10 private General insurance firms namely ICICI Lombard, IFFCO TOKIO, HDFC ERGO, Cholamandalam MS, TATA AIG, Future General India,Reliance, Bajaj Allianz, SBI and Universal Sompo General Insurance companies for implementation of national crop insurance programme