Crop Insurance in India (2)

8/2/2019 Crop Insurance in India (2)

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y In India agriculture is just like gambling.

y Vagaries of weather-

- Rainfall

- hailstorm

- temperature- humidity- wind- cyclone

y Pest & diseases

y

Firey Quality of inputs

y Soil

y Market pricesy


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To provide insurance coverage and financialsupport

To encourage the farmers to adopt highertechnology in Agriculture.

To help stabilize farm incomes, particularly in

disaster years.


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y 1947-48, assurance given by Ministry of Food &

Agriculture to introduce Crop & Cattle insurance in the

country.

y

Modalities of crop insurance considered- individualapproach or Homogenous area approach.

y 1965- crop insurance bill was introduced.


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y Individual approach scheme (1972-79)

y Pilot crop insurance scheme (1979-85)

y Comprehensive crop insurance scheme (1985-97)

y Experimental crop insurance scheme


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y Total number of farmers covered- 7,62,65,438

y Total area covered (Hectares) - 12,75,70,282

y Total sum-insured (Rs. Crores)- 24,949

y Total insurance charges (Rs. Crores)- 404

y Total claim (Rs. Crores)- 2303


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y Wheat Insurance

y Rabi Weather Insurance

y Potato Insurance

y Poppy Insurance

y Uttarakhand seb bima yojana

y

Coconut insurancey Rubber insurance

y Coffee insurance


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I. NAIS: yield based; non-actuarial premium excepthorticultural crops / annual commercial crops;underwriting of losses by Central & State Govt. on50:50 ratio

II. WBCIS: (weather based crop insurance scheme);actuarial premium with premium subsidy sharedequally by Central & State Govt.

III. CPIS(Certified planning & insurance scheme):plant based; actuarial premium

IV. MNAIS (Modified NAIS): yield based; actuarialpremium with premium subsidy shared equally byCentral & State Govt.

V. Sookha Suraksha Kavach


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y In last 22 Crop Season:Farmers Covered : 17.01 crorePremium Collected: Rs. 6213.41 crore

Claims Paid : Rs. 20437.21 croreClaim ratio : 3.29


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Season Crop Premium rate

Kharif Bajra and oilseeds

Other crops(cereals,other millets and

pulses)

3.5% of SI or Actuarial

rate, whichever is less

2.5% of SI or Actuarialrate whichever is less

Rabi Wheat

Other crops(cereals,other millets and

pulses)

1.5% of SI or Actuarial

rate whichever is less

2.0% of SI or Actuarialrate whichever is less

Kharif & rabi Annual commercial /

horticultural crops

Actuarial rates


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0

10

20

30

40

50

60

70

80

90

Ma

h

Ra

j

An

dhra

Karn

UP

MP

Gu

j

WB

Bih

ar

Jhar'nd

Orissa

Chatisgarh

TN

Others


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particulars 2007-08 2008-09 2009-10 2010-11(kharif only)

Claims

(Rs. In crore)

1724 3880 4936 Under process

Farmers

covered(In lakh)

184 192 239 114

Farmers

benefited(In lakh)

32 62 88 Under process


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Documents

Crop Insurance in India (2)