250
farmers whereas the penetration of non-loanee farmers is abysmally low at
10%” (see a summary picture in Table 11.1)
NAIS and Modified NAIS
Themost extensive country-wide crop insurance is NAISwhich is a public
sector initiative to mitigate yield risk. Replacing the earlier Comprehensive
Crop Insurance Scheme (1985-99) with vastly improved features consisting of
increased coverage of farmers, crops and risk elements, NAIS was introduced
from Rabi 1999-2000 to provide a comprehensive insurance solution to the
farmers against crop losses in the event of failure or damage to any of the
notified crops as a result of natural calamities (drought, flood, hailstorm and
cyclone) or widespread incidence of pests or diseases. All the farmers, loanee
and non-loanee, irrespective of the land-size, are covered under the scheme.
The scheme has envisaged coverage of all food crops and major non-food and
horticultural crops. The premium rates are 3.5% of sum insured for bajra and
oilseeds, 2.5% for other
kharif
crops, 1.5% for wheat and 2% for other
rabi
crops. In the case of commercial and horticultural crops, actuarial rates are
charged. Originally, the scheme had provided for 50% subsidy in the premium
charged for small and marginal farmers, which has been phased out over a
period of five years and now, a 10% subsidy is provided to them, which is shared
equally between the centre and state governments. Some State Governments
have decided to extend additional premium subsidy to their farmers in select
Table 11.1 A Summary Picture of Four Insurance Schemes
(
`
in lakhs)
Sl.
No.
Year
Farmers
Insured
(no)
Area Insured
(ha)
Sum
Insured
Premium Claims Paid/
payable
Farmers
benefitted
(no)
X
th
Plan Terminal Year
1 2006-07 17912097 27305875.36 2130167.59 61017.41 229087.27 4521941
XI
th
Plan
2 2007-08 19128731 29210232.09 2626652.13 83138.41 183100.62 3397897
3 2008-09 19599952 26974769.88 2770143.02 88933.08 392853.76 6423542
4 2009-10 26214803 37077862.19 4359426.80 159549.90 515886.52 10383842
5 2010-11 27669862 38195818.13 5151991.96 232720.20 194728.81 6011456
6 2011-12* 29539380 19940905.00 5807286.00 313145.00 257789.00 56649043
* Provisional; in the claims paid, there was obviously a clerical error in the figure as unbelievably large
as 2577890 or
`
25,779 crore whereas in the previous year, it was
`
1,947 crore. Likewise, the farmers
benefited as 56.65 million is unbelievably large; it may be 5.66 million compared with 6.01 within in the
previous year!
Source: Ministry of Agriculture (2013): Department of Agriculture and Cooperation,
Annual Report
2012-13
, p.57 and Annual Report 2011-12, p.64
