FENVALERATE 0.4% DP Cotton Spotted Bollworm
B. Mission Organic Value Chain Development for North Eastern Region 5.3 Basic Information
6. EFFECTIVE IMPLEMENTATION OF CROP INSURANCE SCHEME TO ACHIEVE MAXIMUM COVERAGE OF THE
6.2 Ongoing Schemes
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6. EFFECTIVE IMPLEMENTATION OF CROP INSURANCE
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Stations (AWSs) under WBCIS are taken as one unit for assessment/ payment of claims for widespread calamities. However, claims are also being paid on the basis of losses at individual farms due to localized calamities like hailstorm and landslides under MNAIS and hailstorm & Cloudburst under WBCIS as add-on/ index-plus coverage. The penetration/ coverage of these schemes in terms of number of farmers have reached about 23% of the total number of land-holdings in the country.
6.2.3 The coverage of farmers under NCIP by the terminal year of 12th Plan (i.e.
2016-17) was projected at 50% with help of improvements/ changes made in NCIP component schemes of MNAIS, WBCIS and CPIS. The salient features of the NICP are listed below:-
i) Implementation is made compulsory for loanee farmers.
ii) Two indemnity levels of 80% and 90% would be available; instead of three i.e.
70%, 80% and 90% under MNAIS.
iii) Under WBCIS, provision for add-on/ index plus products for horticultural crops for compensating losses due to perils of hailstorm, cloudburst etc.
iv) For successful implementation of WBCIS, 5000 AWS will be set-up in the country through the model of Private Public Participation (PPP).
v) Pilots for use of modern technology (RST)/ Satellite imageries to supplement the yield assessment through crop cutting experiments (CCE).
vi) Insurance eligibility condition of having at least 10 healthy palms by farmer has been reduced to 5 palms under CPIS.
vii) Increased Sum Insured under CPIS.
viii) Loss intimation time has been increased from 7 days to 15 days under CPIS.
6.2.4 The total funds released by Government of India under various schemes for crop insurance are as under:
(Rs. crore) Plan/ Year NAIS
(since Rabi 1999-2000)
WBCIS (since Kharif 2007)
MNAIS (since Rabi 2010- 11)
CPIS (since 2009-10)
Total
IX Plan (1997- 2002)
811.49 - - - 811.49
X Plan (2002-07) 2626.84 - - - 2626.84
XI Plan (2007- 12)
5851.88 1370.37 87.15 1.95 7311.35
XII Plan (2012- 17)
2012-13 700.00 655.00 194.18 0.50 1549.68
2013-14 1600.00 700.00 251.02 0.50 2551.52
2014-15 1543.56 470.00 584.79 Nil 2598.35
2015-16* 1935.71 630.79 413.88 2980.39
* as on 31.03.2016 6.2.5 Rs.2823.00 crore and Rs.3185.09 crore have been allocated in the Budget Estimates and Revised Estimates for 2015-16 respectively for all existing crop insurance schemes (viz NAIS, MNAIS, WBCIS and CPIS).
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6.2.6 During the last 33 crop seasons (i.e from Rabi 1999-2000 to Kharif 2015), 3536 lakh farmers were covered over an area of 4953 lakh hectares insuring a sum amounting to Rs.606674 crore. Total premium of Rs. 28945 crore were collected against the claims of Rs. 52922 crore benefiting 1212 lakh farmers.
6.2.7 National Agricultural Insurance Scheme (NAIS)
6.2.7.1 With a view to provide financial support to farmers in the event of loss/
failure of any of the notified crop in the notified areas as a result of natural calamities (flood, drought etc), pests and diseases, National Agricultural Insurance Scheme (NAIS) with introduced in the country from Rabi 1999-2000 season in place of erstwhile Comprehensive Crop Insurance Scheme (CCIS). NAIS was to be discontinued after implementation of National Crop Insurance Programme (NCIP) from Rabi 2013-14 season. However, on the representations from States, NAIS has been allowed to continue upto 2015-16. The scheme is available to all the farmers (loanee and non-loanee) irrespective of their size of land-holding. Loanee farmers are covered on compulsory basis in a notified area for notified crops whereas for non-loanee farmers, the scheme is voluntary.
6.2.7.2 The scheme covers all the food crops (cereals, millets and pulses), oilseeds and annual commercial/ horticultural crops, in respect of which past yield data is available for adequate number of years. The administered premium rates are charged which range from 1.5% to 3.5% of the sum insured for food and oilseed crops for normal sum insured and indemnity level. In the case of commercial/
horticultural crops, higher sum insured and indemnity than the normal, actuarial rates are charged. Under the scheme, 10% subsidy in premium is available to small and marginal farmers.
6.2.7.3 Financial liability towards claims over and above 100% of premium collected in case of Food Crops and Oilseeds, Bank Service charges and 20% of Administrative and office expenses are to be borne by the Government and are shared on 50: 50 bases by the Central Government and the State Governments. All claims in case of annual horticultural/ commercial crops and higher sum insured and indemnity than the normal under food and oilseed crops are paid by the implementing agency.
6.2.7.4 The scheme is optional for States/Union Territories (UTs). The scheme is implemented by 25 States and 2 UTs in one or more seasons. The scheme is demand-driven. However, the progress of the scheme can be measured in terms of farmers/ area covered, sum insured, premium collected, claims paid and farmers benefited. State-wise details of farmers covered, area covered, and sum insured etc under NAIS since its inception i.e. Rabi 1999-2000 to Kharif 2015 are given as under:
6.2.8 Modified National Agricultural Insurance Scheme (MNAIS)
6.2.8.1 The scheme is implemented as a full-fledged component of NCIP from Rabi 2013-14. The major improved provisions/ features of MNAIS are as under:
Reduction in unit area of insurance to village/ village panchayat,
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Actuarial premium rates for insuring crops and hence, liability of claims is on insurance company,
Private insurance companies have also been involved for implementation to provide competitive service to the farmers.
Higher subsidy in premium ranging upto 75% to all farmers,
Sum Insured for the premium above the prescribed cap, is reduced proportionately,
More proficient basis for calculation of threshold yield (average yield of last 7 years excluding upto two years of declared natural calamity).
Higher minimum indemnity level of 70% instead of 60% in NAIS,
Indemnity amount for prevented sowing/planting risks and for post harvest losses due to cyclones.
On account payment upto 25% of likely claims as advance for providing immediate relief to farmers during adverse season,
An individual assessment of claims in case of specified localized calamity viz.
hailstorm, landslide,
Uniform seasonality norms for both loanee & non loanee farmers, 6.2.9 Weather Based Crop Insurance Scheme (WBCIS)
6.2.9.1 With the objective to bring more farmers under the fold of crop insurance and to overcome the shortcoming regarding delay in settlement of claims etc under NAIS, a pilot Weather Based Crop Insurance Scheme (WBCIS) was launched in 20 States (as announced in the Union Budget 2007-08). WBCIS is implemented as a full-fledged component scheme of NCIP from Rabi 2013-14 season. WBCIS intends to provide insurance protection to the farmers against adverse weather incidence, such as deficit and excess rainfall, high or low temperature, humidity etc. which are deemed to impact adversely the crop production. It has the advantage to settle the claims within shortest possible time.
Under WBCIS, actuarial rates of premium are charged. However, to make the scheme affordable to farmers, subsidy upto 50% of the premium is provided by the Government which is shared by the Centre and State concerned on 50: 50 basis.
Actuarial rates of premium are capped at 10% during Kharif and 8% during Rabi for food crops and oilseeds. For annual commercial/ horticultural crops, cap of 12% on actuarial rates of premium is applicable. In case the actuarial premium is more than the prescribed capped rate, then actual Sum Insured & resultant claims, if any, were also reduced proportionately. Both loanee and non-loanee farmers are covered under WBCIS irrespective of size of their land-holding. Like NAIS, the loanee farmers are covered on compulsory basis in a notified area for notified crops whereas for non-loanee farmers, scheme is voluntary. Further, to provide competitive service to the farmers, private insurance companies have been involved for implementation besides the Agriculture Insurance Company of India Ltd.
6.2.10 Coconut Palm Insurance Scheme (CPIS)
6.2.10.1 The Coconut Palm Insurance Scheme (CPIS) is implemented since the year 2009-10 in the selected areas of Andhra Pradesh, Goa, Karnataka, Kerala, Maharashtra, Orissa, Tamil Nadu and West Bengal. Now, the scheme is implemented as a full-fledged component scheme of NCIP from Rabi 2013-14
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season in all coconut growing States. The scheme is administered by Coconut Development Board. Insurance coverage is extended to the total loss of the individual palm in the age group of 4 to 60 years for dwarf and hybrid and 7 to 60 years for tall variety, leading to either death of palm or the palm becoming useless due to various natural and other perils. The farmers should have at least 5 healthy nut bearing palms in the age group of 4 to 60 years in contiguous area/ plot and should have been enrolled by State Agriculture/ Horticulture Department or Coconut Development Board or any other such agency under rehabilitation/ development/
expansion scheme. The Sum Insured is based on the average input cost of the plantation and the age of the specific plant. The Sum Insured varies from Rs. 900 per palm (in the age group of 4-15 years) to Rs. 1725 per palm (in the age group of 16-60 years). The premium rate per palm ranges from Rs. 9.00 (in the age group of 4 to 15 years) to Rs. 14.00 (in the age group of 16 to 60 years) and it varies on sum insured per year, considering the age of specific palm. Fifty per cent of premium is contributed by GOI; 25% by the concerned State Government and the remaining 25% by the farmer. The Insurance Company i.e. Agriculture Insurance Company (AIC) of India Ltd. is the implementing agency of the scheme. The CPIS is being administered/ implemented by the Coconut Development Board (CDB).
6.2.11 Pradhan Mantri Fasal Bima Yojana (PMFBY)
6.2.11.1 The existing crop insurance schemes have recently been reviewed in consultation with various stakeholders including States/UTs. As a result of the review, a new scheme “Pradhan Mantri Fasal Bima Yojana (PMFBY) has been approved for implementation from Kharif 2016 along with pilot Unified Package Insurance Scheme (UPIS) and restructured Weather Based Crop Insurance Scheme (WBCIS). Under the PMFBY, a uniform maximum premium of only 2% will be paid by farmers for all Kharif crops and 1.5% for all Rabi crops. In case of annual commercial and horticultural crops, the maximum premium to be paid by farmers will be only 5%. The premium rates to be paid by farmers are very low and balance premium will be paid by the Government to provide full insured amount to the farmers against crop loss on account of natural calamities. There is no upper limit on Government subsidy.
6.2.11.2 Earlier, there was a provision of capping the premium rate which resulted in low claims being paid to farmers. This capping was done to limit Government outgo on the premium subsidy. This capping has now been removed and farmers will get claim against full sum insured without any reduction. The use of technology will be encouraged to a great extent. Smart phones will be used to capture and upload data of crop cutting experiments to reduce the delays in claim payment to farmers. Remote sensing will be used to reduce the number of crop cutting experiments. The salient features of the new Crop Insurance schemes are as under: