National Agri. Insurance Policy

8/9/2019 National Agri. Insurance Policy

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PRESENTED BY-

SUDHIR KALE.

MITCON INSTITUTE OFMANAGEMENT, PUNE.

National Agri. InsurancePolicy of GOI , its effect and

limitations


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National Agri. Insurance Policy

y National agricultural insurance scheme (NAIS) hasbeen implemented in 1999-2000 for providinginsurance coverage for failure of notified crops due

to natural calamity, pest and diseases.y This scheme is available to all Indian farmers

y It covers all food crops (cereals/pulses)horticultural crops, oil seeds.

y The scheme is being implemented from Rabi 1999-2000.


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Objectives:

1) To provide insurance coverage and financialsupport to the farmers in the event of failure ofany of the notified crop as a result of natural

calamities, pests and diseases.2) To encourage the farmers to adopt progressive

farming practices, high value inputs and highertechnology in agriculture.

3) To help stabilize farm incomes, particularly indisaster years.


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Salient Features:

1) Scheme is available to all farmers loanee andnon-loanee ,both irrespective of the size of theirholdings. Compulsory for loanee farmers and

optional for non-loanee farmers.2) Coverage of all food crops (cereals, millets and

pulses), oilseeds and annual commercial/horticultural crops.

3) Premium rates are 3.5% for bajra, and oilseedsand 2.5% for other Kharif crops, 1.5% for wheat,and 2% for other rabi crops


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Assistance:

y Premium subsidy to small and marginal farmersetc. are shared between Central and StateGovernments on 50 : 50 basis in the initially.


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Area of operation:

1) Central Government is the policy makingauthority for the scheme.

2) Presently, General Insurance Corporation of

India (GIC) is the Implementing Agency.

3) The activities relating to the implementation ofNAIS are carried out through GIC, rural financialinstitutions, State Governments.


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Documents Required for Agriculture InsuranceClaim:

y The farmer must approach the designated branch /PACS and submit the proposal form in theprescribed format.

y The farmer must provide documentary evidence inregard to the possession of cultivable land (copy ofthe pass book and extract.

y Land revenue receipt should be enclosed.

y The farmer must furnish area sown confirmationcertificate, if required.


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Limitations:

y The main flaws of NAIS include its mandatorynature, its failure to address adverse selection bynon-loanee farmers, arbitrary premiums, and the

inefficiency of the area approach.y NAIS protect a farmers income partially as they

cover only production risks and have no mandate tocover market (price) risks.

y Objectivity and transparency is relatively less.


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Cont

y Delays in claims settlement.

y calculation of guaranteed income.

y Low indemnity level.


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Effects

y It acts as a critical instrument of development inthe field of crop production, providing financialsupport to the farmers in the event of crop failure.

y It Encourage farmers to adopt progressive farmingpractices and higher technology in Agriculture.

y It help in maintaining flow of agricultural credit.


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y Send feedback on [email protected]