All Agricultural Insurance Schemes Provided by Indian Government: An Overview

In India, agriculture is the backbone of the economy, providing livelihoods to millions of farmers. However, unpredictable factors such as natural calamities, pests, and diseases pose significant risks to crop production and farmer incomes. To mitigate these risks, the government has implemented several crop insurance schemes.

This article explores the key agricultural insurance schemes in India, including the National Agricultural Insurance Scheme (NAIS), Modified National Agricultural Insurance Scheme (MNAIS), Pilot Weather Based Crop Insurance Scheme (WBCIS), and Pilot Coconut Palm Insurance Scheme (CPIS).

National Agricultural Insurance Scheme (NAIS):

- Implemented since the Rabi season of 1999-2000.

- Aims to provide financial support to farmers in the event of crop failures caused by natural calamities, pests, and diseases.

- Agriculture Insurance Company of India (AIC) Ltd. is the implementing agency.

- Covers all food crops, oilseeds, and annual commercial/horticultural crops with sufficient past yield data.

- Premium rates vary based on crop type, with a 10% subsidy for small and marginal farmers shared by the central and state governments.

Modified National Agricultural Insurance Scheme (MNAIS):

- Introduced based on recommendations from a Joint Group and stakeholder inputs.

- Offers actuarial premium rates with a subsidy of up to 75% for all farmers.

- Upfront premium subsidy is shared equally by the central and state governments, while claims liability rests with the insurance company.

- Reduces the unit area of insurance to the village/village panchayat level for major crops.

- Provides coverage for prevented sowing/planting risk and post-harvest losses due to cyclones.

- Offers on-account payment of up to 25% of likely claims for immediate relief to farmers.

- Promotes private sector participation in crop insurance.

Also Read: Types of Insurance Offered by Government for Farmers

Pilot Weather-Based Crop Insurance Scheme (WBCIS):

- Launched in 2007 to expand crop insurance coverage.

- Protects farmers against adverse weather conditions impacting crop production.

- Settles claims quickly and is based on actuarial rates of premium.

- Premiums charged to farmers are restricted to levels similar to NAIS.

- Involves Agriculture Insurance Company of India Ltd. and private general insurance companies.

- Covers farmers in 20 states and has seen significant coverage since its inception.

Pilot Coconut Palm Insurance Scheme (CPIS):

- Launched in 2009-10 to insure coconut palms against risks in selected areas.

- Sum insured based on average input cost and age of coconut palms.

- Premium shared between the central and state governments and farmers.

- Implemented by Agriculture Insurance Company of India Ltd.

- Aims to safeguard coconut growers' interests and provide financial support in case of losses.

Also Read: Farmer Welfare Schemes Launched by Modi Government in the Last 9 Years

Conclusion:

- Agricultural insurance schemes are crucial for providing financial protection to farmers and ensuring their livelihoods in India.

- NAIS, MNAIS, WBCIS, and CPIS have significantly contributed to mitigating risks faced by farmers.

- These schemes provide confidence for farmers to invest in agriculture, improve productivity, and secure their incomes.

- Continued efforts to enhance the efficiency, accessibility, and reach of these insurance schemes are crucial for sustainable agricultural development and farmer welfare in the country.

source- Ministry of Agriculture

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