Govt. of India vide letter no.13011/02/2008-Credit II Pt. dated 28th Sept., 2010 came out with Modified National Agricultural Insurance Scheme (MNAIS) to be implemented in 50 selected districts of India on pilot basis in place of National Agricultural Insurance Scheme (NAIS) that means NAIS will be withdrawn for both loanee and non loanee farmers from those area/crops where MNAIS is implemented. The main features of the scheme are given below.
Objective:
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MNAIS aims at sustainable production in agriculture sector, thereby ensuring food security, crop diversification and enhancing growth and competitiveness from agriculture sector, besides protecting farmers from production risks.
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Loanee farmers are insured under ‘compulsory category’ while non-loanee farmers are insured under ‘voluntary category’.
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NAIS is withdrawn for those areas/crops of districts, in which MNAIS is implemented.
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Concurrent evaluation of parameters and impact of scheme will be undertaken, after two years of implementation of MNAIS, by an external agency.
Crops covered: Food Crops (Cereals, Millets & Pulses, Oil Seeds, Annual Commercial / Horticultural crops
States and areas to be covered: 50 districts in different States
Farmers to be covered: All farmers including sharecroppers, tenant farmers growing the notified crops in the notified areas.
Risks covered & exclusions:
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Standing crops: non-preventable risks like- Natural fire, lightening, storm, cyclone, flood, landslide, drought, pest/diseases, etc.
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Prevented sowing/planting risk: In case farmer of an area is prevented from sowing/planting due to deficit rainfall or adverse seasonal conditions, such insured farmer who failed to sow/plant, shall be eligible for indemnity. The indemnity payable would be a maximum of 25% of the sum insured.
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Post harvest losses: coverage is available only for those crops, which are allowed to dry in the field after harvesting against specified perils of cyclone in coastal areas, resulting in damage to harvested crop. Further, the coverage is available only upto a maximum period of two weeks from harvesting.
Sum insured: The sum insured would be at least equal to the amount of crop loan sanctioned/advanced, which may extend upto the value of the threshold yield of the insured crop at the option of insured farmer.
Premium rates & Subsidy: Premium rates are to be worked out on actuarial basis. However, the premium paid by the farmer is subsidized on following basis.
| S. No. |
Premium slab |
Subsidy to farmers |
| 1. |
Upto 2% |
Nil |
| 2. |
>2-5% |
40% subject to minimum net premium of 2% |
| 3. |
>5-10% |
50% subject to minimum net premium of 3% |
| 4. |
>10-15% |
60% subject to minimum net premium of 5% |
| 5. |
>15% |
75% subject to minimum net premium of 6% |
The proposed scheme has following main features compared to NAIS:
- Actuarial premiums are paid for insuring crops and hence claims liability is on insurer.
- Unit area of insurance for major crops is village/village panchayat.
- Indemnity amount is paid for prevented sowing/planting risks and for post harvest losses, due to cyclones.
- On account payment upto 25% of likely claim under MNAIS is paid as advance, for providing immediate relief to farmers.
- Uniform seasonality norms are applicable for both loanee and non-loanee farmers.
- More proficient basis for calculating threshold yield (average yield of last seven years excluding upto two years of declared natural calamity) will be applicable;
- Minimum indemnity level is 70% damage, instead of 60% as in NAIS.
