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5.Weather Based Crop Insurance Scheme (WBCIS)
During 2012-13 for both kharif 2012 and Rabi 2012-13, the GOI has decided to continue Pilot Weather Based Crop Insurance Scheme (WBCIS) in selected districts. The scheme will be implemented in twenty States viz. AP, Assam, Bihar, CG, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, MP, Maharashtra, Meghalaya, Orissa, Punjab, Rajasthan, TN, UP, Uttarakhand, WB. NAIS will be withdrawn for loanee farmers from the areas/crops where WBCIS is implemented.
The major features of the scheme are given below.
Objective:
Pilot WBCIS aims to mitigate hardships of insured farmers against likelihood of financial loss on account of anticipated crop loss resulting from incidence of adverse conditions of weather parameters like deficit or excess rainfall and also other parameters like temperature, frost, humidity, wind, etc.
Eligibility:
All farmers both loanee and non-loanee, are eligible. Insurance will be compulsory to loanee and optional for non-loanee farmers.
Insurance Companies:
Agriculture Insurance Co. of India Ltd. (AIC) and ICICI-Lombard, IFFCO-TOKIO General Insurance Co., Cholamandalam MS General Insurance Co., HDFC- ERGO General Insurance Co.
Selection of area: Areas, where WBCIS will be implemented, will be notified by the State Governments concerned.
Crops covered: Major cereals, millets, pulses & oilseeds, Commercial/ Horticultural Crops
Premium rate:
Actuarial rates of premium would be worked out by insurance companies including AIC using Standard Premium Rating Methodology and rates are capped at 10% during Kharif 2011 season and 8% during Rabi 2011-12 for food crops and oilseeds. Farmers will actually pay premium for food and oilseeds crops at par with existing rates of NAIS. In case of annual commercial / horticultural crops, cap of 12% on actuarial rates of premium will be applicable. The detailed structure of Premium Payable by the insured is tabled below.
Food Crops and Oilseeds |
S.No. |
Crops |
Premium Payable by insured |
| 1. |
Wheat |
1.5% or Actuarial Rate, whichever is less. |
| 2. |
Other crops (other cereals, millets, pulses & oilseeds) |
2.0% or Actuarial Rate, whichever is less. |
Annual Commercial/Horticultural Crops |
S.No. |
Premium Slabs |
Subsidy |
| 1. |
Upto 2% |
No Subsidy |
| 2. |
>2-5% |
25%, subject to minimum net Premium of 2.00% payable by farmer. |
| 3. |
>5-8% |
40%, subject to minimum net Premium of 3.75% payable by farmer. |
| 4. |
>8% |
50%, subject to minimum net Premium of 4.80% and maximum net premium of 6% payable by farmer. |
Sum insured: Maintaining maximum limit of sum insured broadly equivalent to cost of cultivation, non-loanee farmers will have flexibility to insure smaller amounts within maximum limit, but not less than 50% of maximum limit of sum insured. |
