Crop Insurance

Insurance programme on “Individual” Approach (1972-78).

Pilot Crop Insurance Scheme (PCIS, 1979-84)

Comprehensive Crop Insurance Scheme (CCIS 1985-1999).

National Agricultural Insurance Scheme (NAIS,1999).

National Crop Insurance Programme (NCIP) 2013-14

Modified National Agricultural Insurance Scheme (MNAIS).

Pilot weather Based Crop Insurance Scheme (WBCIS)

Coconut Palm Insurance Scheme (CPIS)

Crop InsuranceAgriculture contributes 14% to National GDP, yet it is widely perceived that if agriculture fails then what would succeed, and if agriculture succeeds what would fail ?

Half of the population directly involved in this profession.

Agriculture in India is weather dependent and a high risk proposition.

Hence, insulation against weather vagaries and loss mitigation efforts are considered essential for sustained agricultural growth.

Crop Insurance Schemes in IndiaInsurance programme on “Individual” Approach (1972-78)

Pilot Crop Insurance Scheme (PCIS, 1979-84)

Comprehensive Crop Insurance Scheme (CCIS 1985-1999)

National Agricultural Insurance Scheme (NAIS,1999)

National Crop Insurance Programme (NCIP) 2013-14

Modified National Agricultural Insurance Scheme (MNAIS)

Weather Based Crop Insurance Scheme (WBCIS)

Coconut Palm Insurance Scheme (CPIS)

Crop Insurance (NAIS) in OdishaComponent Loanee Farmers Non-loanee Farmers

Kharif,2000 Kharif,2012 Kharif,2000 Kharif,2012

Farmers covered 5,99,757 14,34,151 81,253 11,835

Area (Ha) 6,72,390 12,33,448 79,205 18,462

Sum Insured(Rs in Lakh) 37558.48 312512.15 5274.18 3125.49

Premium (Rs in Lakh) 940.38 7857.60 183.54 97.54

Claims (Rs in Lakh) 7388.82 6068.50 3158.35 45.62

Farmers Benefitted 273977 86306 75429 1088Contd. . .

Component Loanee Farmers Non-loanee Farmers

Rabi,1999-2000

Rabi,2012-2013

Rabi,1999-2000

Rabi,2012-2013

Farmers covered 2,32,836 76983 0 0

Area (Ha) 1,64,703 91,931 0 0

Sum Insured(Rs in Lakh) 13096.89 27930.93 0 0

Premium (Rs in Lakh) 228.45 574.73 0 0

Claims (Rs in Lakh) 0.17 543.88 0 0

Farmers Benefitted 15 12068 0 0

Crop Insurance (MNAIS) in Odisha

Component Loanee Farmers Non-loanee Farmers

Rabi,2010-2011

Rabi,2012-2013

Rabi,2010-2011

Rabi,2012-2013

Farmers covered 40,434 21176 0 0

Area (Ha) 32,704 12,748 0 0

Sum Insured(Rs in Lakh) 8843.15 4457.35 0 0

Premium (Rs in Lakh) 426.41 172.34 0 0

Claims (Rs in Lakh) 401.03 298.89 0 0

Farmers Benefitted 7792 4949 0 0

Component Loanee Farmers Non-loanee Farmers

Kharif,2008 Kharif,2012 Kharif,2008 Kharif,2012

Farmers covered 0 29,744 13,289 1,988

Area (Ha) 0 48814 22,278 3,766

Sum Insured(Rs in Lakh) 0 5857.88 4455.63 452.08Farmers Premium (2.5% of SI)(Rs in Lakh) 0

146.45 111.39 11.30

Gross Premium (10% of SI) (Rs in Lakh) 0

585.79 445.56 45.21

Claims (Rs in Lakh) 0 254.96 414.81 10.95

Farmers Benefitted 0 25927 13289 1965

Crop Insurance (WBCIS) in Odisha

Issues/Suggestions of NCIP

In respect of paddy GP may be taken as unit and for other crops the unit may be block.

A proper mechanism may be clearly established to assess the prevented/ planting risk and post harvest loss.

The assessment of crop loss at the mid season and on account settlement of claims may not be possible to implement properly. Hence this provision may be withdrawn

Contd. . .

Actuarial premium rate may be adopted for big farmers.

In case of paddy the premium rate for small and marginal farmers may be fixed at 2.5% and the remaining premium may be subsidized

For other food and oilseed crops the premium rate to be paid by farmers may be fixed ranging between 1.5% to 3.5% and the remaining premium of the actuarial rate may be subsidized.

For Commercial / Horticultural crops actuarial premium may be charged with subsidy. Contd.

. .

Low level of penetration. Extensive awareness and publicity campaigns of the scheme among farming community by co-ordination of Agriculture, Co-operation department and Insurance Companies.

For allocation of district(s) should be for a longer period than for a season to enable insurance companies to focus their efforts on publicity and awareness creation for wider participation.

The number of Crop Cutting Experiments (CCEs) have increased manifold due to reduction in size of insurance unit. It affects the quality of CCEs and accuracy of yield data. Remote Sensing Technology (RST),GPS enabled devices may be used apart from traditional method. Central Govt. shall consider to provide support. Contd.

. .

The problems of multiple insurance for the same land can be overcome if farmer’s data is shared among all loan disbursing banks.

Delay in payment of claims affects adversely

A software interface between banks and insurers needed to allow online transfer of crop insurance data to facilitate coverage and timely payment of claims.

If premium rates exceeds capped level, sum insured is proportionately reduced. The provision is contrary to the compulsory provision for loanee farmers. It leads to under-insurance. Contd.

. .

Poor density of Automatic Weather Stations(AWS). Steps to be taken for more AWS.

Difficulties in designing and development of term sheet with trigger points.

Lot of awareness required as WBCIS is somewhat complicated.