Private insurance sector will now have a bigger play in rolling, execution of insurance schemes along with Agricultural Insurance Company of India

The government will roll out new national crop insurance programme for the twelfth plan period across India in the ensuing Rabi 2013-14 seasons.

Agricultural Insurance Scheme ( NAIS), Weather Based Crop Insurance Scheme ( WBCIS), Pilot modified National Agricultural Insurance Scheme ( MNAIS), and pilot Coconut Palm Insurance Scheme.

A salient feature of the flagship scheme - Modified National Agricultural Insurance Scheme (MNAIS) is that private insurance sector will have a bigger play in rolling and execution of the insurance schemes along with Agricultural Insurance Company of India. Besides, a catastrophic fund at the national level will be set up for providing reinsurance cover to the insurance companies implementing the scheme. However this fund, set up with equal contribution from the state and centre, can be used only in the event of failure to procure reinsurance cover at competitive rates and if premium to claims ration exceeds 1:5.

Unlike earlier, all farmers even including sharecroppers, tenant farmers, farmers enrolled in contract farming, group of farmers serviced by fertilizer companies, pesticide firms, crop growers, and self help groups are eligible for insurance cover. There will be three indemnity levels instead of two- 70 per cent, 80 per cent and 90 per cent. The insurance, compulsory for loanee farmers and optional for others, provide cover for crop sowing and failure and adopt better technology. It will be available for food crops, oilseeds and annual commercial/ horticultural crops. Loanee farmer is one who has availed loans from banks and financial institutions for seasonal agricultural operations.

The weather based crop insurance Scheme (WBCIS), another component of the same scheme aims to help farmers against adverse weather parameters. It is applicable to major cereals like millets, pulses, oilseeds and commercial / horticultural crops grown during kharif and Rabi seasons. The premium rates are capped at 10 per cent during kharif, 8 per cent during Rabi and 12 per cent for annual commercial/ horticultural crops. Crops include cereals, millets, pulses, oilseeds, wheat, barley, gram, lentil, mustard, potato, onion, cumin, coriander, fenugreek, isabgol. Of the total premium, only a part will be payable by the cultivator, and rest will be borne equally by state and the central government.

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