the national agriculture insurance scheme (nais)
TRANSCRIPT
7/30/2019 The National Agriculture Insurance Scheme (NAIS)
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AGRICULTURE INSURANCE
SCHEME (NAIS)
राषय क ृ ि बीमा योजना
(र .क .ब .य ) By
Mayank Gaur
Mayank KashyapRahul Agrawal
Rajeev Aggarwal
Sarthak Mishra
7/30/2019 The National Agriculture Insurance Scheme (NAIS)
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Objectives
NAIS was introduced from 1999-2000 rabi season
To provide insurance coverage and financial
support to the farmers in the event of failure of any of the notified crop as a result of naturalcalamities, pests & diseases.
To encourage the farmers to adopt progressive
farming practices, high value inputs and higher technology in Agriculture.
To help stabilise farm incomes, particularly indisaster years.
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Administration and Operating
Expenses
The A&O expenses would be shared equally bythe Central Government & respective StateGovernment
100% in 1st year, 80% in 2nd year, 60% in 3rd year,40% in 4th year, 20% in 5th year and 'zero' thereafter
Corpus Fund –
Managed by the IA – General Insurance Company of India
Government of India and State / UT on 50:50 basis.
Calamity Relief Fund for contributions to theCorpus Fund.
Reinsurance Cover in International Market
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Crops Covered
Food crops - Cereals, Millets & Pulses
Annual Commercial/Horticultural crops -
Oilseeds, Sugarcane, Cotton & Potato
Reason –
Adequate yield data is available
More crops can be covered with the availability
of data
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State and UTs
At present, the scheme is being implemented by the25 States and 2 Union Territories
Demand driven scheme The States / UTs opting for the Scheme, would be
required to take up all the crops identified for coverage in agiven year.
Exit clause – Three years
Till Kharif 2009 1524 lakh farmers
Area of 2363 lakh hectares Rs. 174910 crore of the sum insured.
Rs. 18725 of claims made
Premium of Rs. 5266 crore benefiting about 427 lakhfarmers.
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Farmers Covered
All farmers - Sharecroppers, Tenant farmers,
etc
Growing the notified crops in the notified areas Participation
On a Compulsory Basis: All farmers growing
notified crops and availing Seasonal Agricultural
Operations (SAO) loans from Financial
Institutions i.e. Loanee Farmers.
On a Voluntary Basis: All other farmers growing
notified crops (i.e., Non-Loanee farmers) who opt
for the Scheme.
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Risks Coverage
Comprehensive risk insurance will be provided
to cover yield losses due to non-preventable
risks, viz.:
Natural Fire and Lightning Storm, Hailstorm, Cyclone, Typhoon, Tempest,
Hurricane, Tornado etc.
Flood, Inundation and Landslide
Drought, Dry spells
Pests/ Diseases etc.
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Premium Rates
S.N
o Season Crops Premium rate 1 Kharif Bajra & Oilseeds 3.5% of SI or Actuarial rate,
whichever is less
Other crops (cereals, other millets& pulses)
2.5% of SI or Actuarial rate,whichever is less
2 Rabi Wheat 1.5% of SI or Actuarial rate,
whichever is less
Other crops (other cereals,
millets, pulses & oilseeds)
2.0% of SI or Actuarial rate,
whichever is less
3 Kharif &
Rabi
Annual Commercial / annual
Horticultural crops
Actuarial rates
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Premium Rates
Premium Subsidy
50% subsidy in premium is allowed in respect of Small & Marginal farmers,
Shared equally by the Government of India and State/UT
Govt.
The definition of Small and Marginal farmer wouldbe as follows:
Small Farmer:
A Cultivator with a land holding of 2 hectares (5 acres) or less, as defined in the land ceiling legislation of theconcerned State/ UT.
Marginal Farmer:
A Cultivator with a land holding of 1 hectare or less (2.5
acres).
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Unit of Insurance
Area Approach
Gram Panchayat, Mandal, Hobli, Circle, Phirka,
Block, Taluka etc.
Widespread calamities
Individual approach
Only in limited areas, in experimental stage Local events (hailstorm, landslide, cyclone and
flood)
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Levels of Indemnity
Three levels of Indemnity
Low Risk - 90%,
Medium Risk - 80%
High Risk –
60%
Higher indemnity, additional premium
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Indemnity
Indemnity shall be calculated as per the followingformula
(Shortfall in Yield/Threshold yield ) X Sum Insured for the farmer
Shortfall in Yield = Threshold Yield - Actual Yield
Actual and Threshold Yields(AY) per hectare of the insuredcrop for the defined area in the insured season
All the insured farmers growing that crop in the definedarea
Localised phenomenon, the IA will estimate suchlosses at individual farmer level in consultationwith DAC/State/UT.
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Approval Procedure
State Govt Cut off Date Yield Data
Implementation Agency ClaimCalculation
ClaimCheques
Nodal Banks Farmer AccountDeposit Notice Board
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Management and Review
Agricultural situation to be closely monitored
District Level Monitoring Committee - Fortnightly
reports of agricultural situation
Area sown, seasonal weather conditions, pestincidence, stage of crop failure (if any) etc.
Operations to be reviewed annually, and
modifications as may be required would be
introduced.
Periodic Appraisal Reports prepared by Ministry of
Agriculture, the Government of India /
Implementing Agency.
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Challenges
The coverage is limited to certain crops andcertain areas for which yield data is available.
Lack of credit institutions in terms of coverage
the farmer would be deprived of insurancecoverage.
Corruption
Lack of proper communication of yield data
Feasibility of the scheme i.e. premium in caseof small and marginal farmers is subsidized by50 % and is shared equally by Central andstate government.
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Contd
The indemnity coverage for the high risk areas
is 60% as a result the marginal farmers are not
able to take full advantage; thereby making the
scheme less attractive to farmers Problems w.r.t Area figures
Absence of appropriate institutions, delivery
mechanism, procedural and governanceissues had become serious impediments in
the effective implementation of the scheme
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Way forward
Broad based coverage
Comprehensiveness or a package approach
Area approach
Coverage of major crops
Public private partnerships
Examining the possibility of proxy measures.