Press Information Bureau

Government of India

Chennai

 

INSURE  YOUR  CROP, ENSURE  YOUR  PEACE

 

For the farmers, their crops are dearer than their own lives. They are completely devastated if their crops fail or get destroyed due to various reasons that are beyond their control. If they can insure their lives, then why not their crops which are more precious to them than their own life?  For a little premium, the National Agriculture Insurance Scheme (NAIS) takes the worry off the minds of farmers.

 

What crops?

          The reason for the disaster may be flood, cyclone, drought, lightning, natural fire or even tsunami; disease or infestation of insects. The crops that can be insured may be paddy, maize, corn, millet varieties, groundnut, sesame, black gram, horse gram, cotton, sugarcane, potato, onion, plantain, chilly, tapioca, ginger, garlic, pineapple and turmeric. Coconut, mango, coffee are also being insured in select areas and is being expanded to other areas as well.  Some crops are insured on the basis of threshold yield and some others on weather parameters. Other cash crops and horticultural crops shall be included in the coming years.

 

                                                Who can insure?

          Coverage is compulsory for those farmers availing of agricultural loans from banks and societies. Non-loanee farmers are also encouraged to opt for insurance coverage on voluntary basis through their banks where they maintain savings accounts. Share croppers and tenant farmers growing the notified crops are also eligible for coverage.  It may be any type of loan - seasonal agricultural operations loan (SAL), Kissan Credit Card loan or even jewel loan taken for the purpose of cultivation of notified crops covered under NAIS.

         

What premium?

          In respect of loanee farmers under Small /Marginal Farmers categories, only net premium (full premium less subsidy of 10%) needs to be  remitted. In respect of non-loanee farmers, the Tamil Nadu Government  has announced 50% subsidy on premium for all crops. The premium amount varies from crop to crop, based on the per acre  threshold yield.

 

Sum insured

          The minimum sum insured is that of the loan amount availed of by the farmers. The loanee farmers can also insure  up to the threshold yield value. Another option is by paying actuarial premium they can insure up to 150% of the average yield value.

 

 

Benefits of  NAIS

          As mentioned above, to compensate for the loss of crops due to unforeseen circumstances which are beyond the control of the farmers. To encourage the farmers to use latest scientific agri techniques and inputs. To ensure sustainable farm income, thereby benefiting the whole society; to encourage the farmers to increase production of food grains and oil seeds. The scheme indirectly helps employment generation, increase tax collection and growth of economy. It helps hassle-free flow of farm loans. NAIS is being implemented at Block/Firkha level.

 

Loss Assessment

          In a particular Block or Firkha, if there is widespread loss in the yield of the insured crop, i.e., if the yield is less than the threshold yield, in that proportion and according to the sum insured, all those farmers within that area who had enrolled under the scheme would be compensated.  The threshold yield is calculated on the basis of average yield of  three years for paddy and five years for other crops. Supposing the threshold yield of paddy in an area is 5000 kg. and the yield during a particular season is only 3000 kg. and the sum insured is Rs.10,000, the compensation would calculated thus: 2000 (5000-3000)/5000 x 10,000 = Rs.4,000

 

Growth of  NAIS

          The General Insurance Corporation was the pioneer in the business of crop insurance way back from 1985 itself in the name of comprehensive crop insurance. It was later redefined as National Agricultural Insurance Scheme (NAIS) in 1999. The Agricultural Insurance Company of India Ltd. (AIC) that came into being in 2002 took over NAIS and has been spreading the scheme from one crop to the next and from one region to the other. Presently, about 18 crops are under its insurance cover.

 

NAIS in Tamil Nadu

          In the state of Tamil Nadu, though awareness about NAIS is slowly increasing, it is not up to the desired level. It is estimated that there are about 80.12 lakh farmers in the state, but only about one lakh farmers were covered (during 2005; all season and all crops). During 2005, an area of 1.78 lakh hectare was covered under NAIS, a premium of Rs. 4.62 crore was paid by the farmers for a sum insured of Rs.220 crore, and claims amounting to Rs.45.92 crores settled to 44,439 farmers.

 

          India, it is said, lives in its villages. Villages, on the other hand, breath and live agriculture. Why then not insure crops and ensure peace, if a little amount can do this wonder?

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No….. tj/sb                                                  1700 hrs.               130407

 

 

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