3.National Agricultural Insurance Scheme
Objective:
To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests & diseases.
Crops covered:
a. Food crops (Cereals, Millets & Pulses)
b. Oilseeds
c. Sugarcane, Cotton & Potato (Annual Commercial / Annual Horticultural crops)
States covered:
All States and Union Territories
Farmers to be covered: Compulsory to all loanee farmers and voluntary to non-loanee farmers.
Risks covered and Exclusions:
1) Natural Fire and Lighting
2) Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado etc.
3) Flood, Inundation and Landslide
4) Draught, Dry spells
5) Pests/Diseases, etc.
Losses arising out of war & nuclear risks, malicious damage & other preventable risks shall be excluded.
Sum Insured / Limit of Coverage:
In case of Loanee farmers the Sum Insured would be at least equal to the amount of crop loan advanced.
Further, in case of Loanee farmers, the Insurance Charges shall be additionality to the Scale of finance for the purpose of obtaining loan.
Premium Rates
| Sl. No. |
Season |
Crops |
Premium rates |
| 1. |
Kharif |
Bajra & Oilseeds |
3.5% of SI or Actuarial rate, whichever is less. |
| |
|
Other crops (cereals, other millets &
Pulses) |
2.5% of SI or Actuarial rate,
whichever is less |
| 2. |
Rabi |
Wheat |
1.5% of SI or Actuarial rate, whichever is less |
| |
|
Other crops (other cereals, millets,
Pulses & Oilseeds) |
2.0% of SI or Actuarial rate, whichever is less |
| 3. |
Kharif &
Rabi |
Annual Commercial / Annual Horticultural crops |
Actuarial rates |
Premium Subsidy
- Premium subsidy in case of small and marginal farmers will be shared equally between Central and concerned State Government, up to 10% of premium.
- Administrative and operational expenses to extent of 20% of these expenses will be shared equally between Central and State Governments.
- Total publicity and bank service charges to be shared equally by Central and State Governments.
- Risk implementing Agency in meeting claims will be restricted to 100% of premium in case of food and oilseeds crops and 150% for annual commercial/horticultural crops.
- As provided in the scheme, indemnity claims will be settled on the basis of yield data furnished by State Government based on requisite number of Crop Cutting Experiments (CCEs) conducted under General Crop Estimation Survey (GCES) and not on any other basis like Annavari/Paisawari, etc.
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