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National Agricultural Insurance Scheme (NAIS)
(Rashtriya Krishi Bima Yojana - RKBY)
Salient Features of the NAIS Scheme (Click the respective points below)
Objectives
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The objectives of the RKBY are as under :-
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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 natural calamities, pests & diseases.
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To encourage the farmers to adopt progressive farming practices, high value in-puts and higher technology in Agriculture.
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To help stabilise farm incomes, particularly in disaster years.
Salient Features of the NAIS Scheme
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1. Crops Covered:
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The Crops in the following broad groups in respect of which i) the past yield data based on Crop Cutting Experiments (CCEs) is available for adequate number of years, and ii) requisite number of CCEs are conducted for estimating the yield during the proposed season:
Food crops (Cereals, Millets & Pulses), Oilseeds, Sugarcane, Cotton & Potato
(Annual Commercial / annual Horticultural crops)
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Other annual Commercial / annual Horticultural crops subject to availability of past Yield data will be covered in a period of three years. However, the crops which will be covered next year will have to be spelt before the close of preceding year.
2. States and Areas to be covered
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The Scheme extends to all States and Union Territories. The States / UTs opting for the Scheme, would be required to take up all the crops identified for coverage in a given year.
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Exit clause: The States / Union Territories once opting for the Scheme, will have to continue for a minimum period of three years.
3. Farmers to be covered
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All farmers including sharecroppers, tenant farmers growing the notified crops in the notified areas are eligible for coverage.
The Scheme covers following groups of farmers:
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.
4. Risks Covered & Exclusions
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Comprehensive risk insurance will be provided to cover yield losses due to non-preventable risks, viz.:
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Natural Fire and Lightning
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Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado etc.
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Flood, Inundation and Landslide
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Drought, Dry spells
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Pests/ Diseases etc.
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Losses arising out of war & nuclear risks, malicious damage & other preventable risks shall be excluded.
5. Sum Insured / Limit of Coverage
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The Sum Insured (SI) may extend to the value of the threshold yield of the insured crop at the option of the insured farmers. However, a farmer may also insure his crop beyond value of threshold yield level upto 150% of average yield of notified area on payment of premium at commercial rates.
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In case of Loanee farmers the Sum Insured would be at least equal to the amount of crop loan advanced.
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Further, in case of Loanee farmers, the Insurance Charges shall be an additionally to the Scale of Finance for the purpose of obtaining loan.
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In matters of Crop Loan disbursement procedures, guidelines of RBI / NABARD shall be binding.
6. Premium Rates
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S.No |
Season |
Crops |
Premium rate |
1 |
Kharif |
Bajra & Oilseeds |
3.5% of SI or Actuarial rate, whichever is less |
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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 |
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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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Transition to the actuarial regime in case of cereals, millets, pulses & oilseeds would be made in a period of five years. The actuarial rates shall be applied at District / Region / State level at the option of the State Govt./UT.
7. Premium subsidy
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Small Farmer:
A Cultivator with a land holding of 2 hectares (5 acres) or less, as defined in the land ceiling legislation of the concerned State/ UT.
Marginal Farmer:
A Cultivator with a land holding of 1 hectare or less (2.5 acres).
8. Sharing of Risk
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Risk will be shared by Implementing Agency (IA) and the Government in the following proportion:
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Food crops & Oilseeds: Till, complete transition to Actuarial regime in a period of five years takes place, claims beyond 100% of premium will be borne by the Government. Thereafter, all normal claims, i.e. claims upto 150% of premium will be met by IA and claims beyond 150% shall be paid out of Corpus Fund for a period of three years. After this period of three years claims upto 200% will be met by IA and above this ceiling, out of the Corpus Fund.
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(b)Annual Commercial crops / annual Horticultural crops: Implementing Agency shall bear all normal losses, i.e. claims upto 150% of premium in the first three years and 200% of premium thereafter subject to satisfactory claims experience. The claims beyond 150% of premium in the first three years and 200% of premium thereafter shall be paid out of Corpus Fund. However, the period of three years stipulated for this purpose will be reviewed on the basis of financial results after the first year of implementation and the period will be extended to five years if considered necessary.
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To meet catastrophic losses, a Corpus Fund shall be created with contributions from the Government of India and State Govt / UT on 50:50 basis. A portion of Calamity Relief Fund (CRF) will be used for contribution to the Corpus Fund.
9. Area approach and Unit of Insurance
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The Scheme would operate on the basis of ‘Area Approach’ i.e., Defined Areas for each notified crop for widespread calamities and on an individual basis for localized calamities such as hailstorm, landslide, cyclone and flood. The Defined Area (i.e., unit area of insurance) may be a Gram Panchayat, Mandal, Hobli, Circle, Phirka, Block, Taluka etc. to be decided by the State/UT Govt. However, each participating State/UT. Govt. will be required to reach the level of Gram Panchayat as the unit in a maximum period of three years.
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Individual based assessment in case of localized calamities, to begin with, would be implemented in limited areas on experimental basis, initially and shall be extended in the light of operational experience gained. The District Revenue administration will assist Implementing Agency in assessing the extent of loss.
10. Seasonality Discipline
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* The broad seasonality discipline followed for Loanee farmers will be as under:
Activity |
Kharif |
Rabi |
Loaning period |
April to September |
October to Next March |
Cut-off date for receipt Of Declarations |
November |
May |
Cut-off date for receipt Of yield data |
January / March |
July / September |
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