Title :

National Agricultural Insurance Scheme (NAIS)

Type :

Central Sector Scheme

Objectives :

(i) 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 and diseases. (ii) To encourage the farmers to adopt progressive farming practices, high value in-puts and higher technology in agriculture. (iii) To help stabilize farm incomes, particularly in disaster years.

Salient features :

-            Scheme is available to all farmers – loanee and non-loanee both – irrespective of their size of holding.

-            Compulsory for loanee farmers and optional for non-loanee farmers.

-            Sum insured may extend to the value of threshold yield of the area insured.

-            Coverage of all food crops (cereals, millets and pulses), oilseeds and annual commercial/horticultural crops in respect of which past yield data is available for adequate number of years.

-            Among the annual commercial/horticultural crops, seven crops namely, sugarcane, potato, chillies, ginger, onion and turmeric are presently been covered.

-            Premium rates are 3.5% for bajra, and oilseeds and 2.5% for other Kharif crops,  1.5% for wheat, and 2% for other rabi crops.  In case the rates worked out on the basis of actuarial data are less than the prescribed rate, the lower rate will be applicable.

-            In case of annual commercial/horticultural crops, actuarial rates are charged.

-            Small and marginal farmers are provided subsidy of 50% of premium charged from them.  The subsidy will be phased out over a period of 5 years on sunset basis.

-            Separate agency namely, Agriculture Insurance Company of India (AIC) has been established for implementation of NAIS.

Pattern of Assistance :

Expenses on account of indemnity claims, Corpus Fund, A & O Expenses, publicity, premium subsidy to small and marginal farmers etc. are shared between Central and State Governments on 50 : 50 basis. 

Eligibility :

Central Government is the policy making authority of the scheme.  Presently, Agriculture Insurance Company of India Ltd. (AIC) is the Implementing Agency.   The activities of the implementation of NAIS are carried out through AIC, rural financial institutions, State Governments/UT Administration and farmers.

Procedure to apply :

At the beginning of each crop season, the State Govt./UT Administration in consultation with GIC notified the crops and defined areas, which will be covered during the season.     The monthly crop-wise and defined area-wise details of crop insurance with premium are remitted to the nodal points and nodal point on receipt of such inputs from various loan disbursing points, scrutinized and transmitted to GIC as per monthly cut-off dates fixed.

The non-loanee farmer who desires to join the scheme would fill up proposal form of NAIS and submits the same alongwith premium in the village branch of commercial bank or Regional Rural Bank or PACS of Cooperative Bank.  It is the responsibility of the branch/PACS to verify the particulars of sum insured and maximum limit etc., while accepting the proposal. The particulars then, are consolidated and sent to the respective nodal points for onward transmission to AIC State Level Crop Insurance Cell before the stipulated dates specified in the notification of the Government.

Persons to be contacted :

The Joint Secretary, Credit Division, Department of Agriculture & Cooperation, Krishi Bhavan, New Delhi.

Date of Start/Duration

The Scheme is being implemented from Rabi 1999-2000 season.

Implementation status :

        Presently, the scheme is being implemented by the following 23 States and 2 Union Territories :

1.   Andhra Pradesh  2.   Assam  3. Bihar 4.Goa

5.  Gujarat   6.Himachal Pradesh     7.  Karnataka

8.  Kerala  9. Maharashtra   10.Madhya Pradesh  

11. Meghalaya 12. Tamil Nadu 13.Uttar Pradesh

14. West Bengal  15. Sikkim  16. Chattisgarh

17. Jharkhand  18. Tripura  19. Orissa 20. Uttranchal

21.  Jammu & Kashmir  22. Rajasthan    23. Haryana

24. Andaman and Nicobar Islands 25.  Pondicherry