Objective of the Scheme
I. The scheme provides Insurance coverage to all Farmers for their crops as notified by the State Governments
All farmers including sharecroppers and tenant farmers growing the notified crops in the notified areas are eligible for coverage.
II. Crops Covered
All crops are covered under the scheme such as Food& Oilseeds crops and Annual Commercial/Horticultural Crops for which past yield data is available. In addition for perennial crops, pilots for coverage can be taken for those perennial horticultural crops for which standard methodology for yield estimation is available.
III. Coverage of Risks and Exclusions under the scheme
The Scheme operates on the principle of “Area Approach” in the selected Defined Areas which are called Insurance Unit (IU) , basis Crops and Defined Areas
in accordance with decision taken in the State level coordination committees on crop insurance of the respective State/UT Government . These units are notified as insurance unit applicable to Village/Village Panchayat or any other
equivalent unit for major crops. For other all other crops it may be a unit of size above the level of Village / village Panchayat.
Following stages of the crop and risks leading to crop loss are coveredunder the scheme.
a. Prevented Sowing/ Planting Risk: In case of majority of insured crops of a notified area are prevented from sowing/planting due to adverse weather conditions such as deficit rainfall or adverse seasonal conditions, the insured
crops that will be eligible for indemnity claims upto maximum of 25% of the sum-insured.
b. Standing Crop (Sowing to Harvesting): Comprehensive riskinsurance is provided to cover yield losses due to non- preventable risks, viz. Drought, Dry spells, Flood, Inundation, Pests and Diseases, Landslides, Natural
Fire and Lightening, Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane and Tornado.
c. Post-Harvest Losses: coverage is available only up to a maximumperiod of two weeks from harvesting for those crops which are
allowed to dry in cut and spread condition in the field after harvesting against specific perils of hailstorm, cyclone and cyclonic rains and unseasonal rains.
For the claims arising out of crop damage due to post-harvest losses
and localized risks, arising out of cyclone or cyclonic rains / unseasonal rains throughout the country, resulting in damage to harvested crop lying in the field in ‘cut and spread’ condition for sole purpose of drying
only , upto a maximum period of two weeks (14days) from harvesting is also covered and the assessment of damage will be made on individual farm basis.
d. Localized Calamities: Loss/ damage resulting from occurrence ofidentified localized risks of hailstorm, landslide, Inundation, cloud burst and natural fire due to lightening affecting isolated farms in the notified
area
Note: Losses arising out of war and nuclear risks, malicious damage and other preventable risks shall be excluded.
IV. Indemnity Level applicable for different crops
Coverage is provided upto different indemnity levels of 70%, 80% and 90% corresponding to high, moderate and low risk level, respectively, of the areas basis the type of crops and is notified for crops and areas as per notified unit applicable.
V. Premium
The Maximum Premium payable by the farmers will be 2% for all Kharif Food & Oilseeds crops, 1.5% for Rabi Food & Oilseeds crops and 5% for Annual Commercial/Horticultural Crops or actuarial premium rate whichever is less. The difference between premium and the rate of Insurance charges payable by farmers shall be shared equally by the Centre and State.
VI. Basis of Claims Settlements
The claims payout would be made, basis the Area Approach, subject to the following:
IMPORTANT NOTE:
1. Farmers can enroll under the scheme via their bank branches, nearest CSC Centers or insurance intermediary as authorized by IRDA.
2. All enrolments need to necessarily be completed within the cutoff date as defined in the respective State Government notification and farmer share of premium duly remitted by the Bank or Intermediary within the cut off date to the Insurance
Company.
3. In case the farmer changes the crop to be sown, he should intimate thechange to insurance company, at least 2 working days prior to cut-off-date for buying insurance or sowing either through financial institution/ channel partner/insurance
intermediary/ directly; as the case may be, along with differencein premium payable, if any, accompanied by sowing certificate issued byconcerned village/ sub-district level official of the State. In case thepremium paid was higher,
insurance company will refund the excess.
4. In case of Tenant/ share farmers obtaining coverage necessary documentaryevidence of land records prevailing in the State (Records of Right (RoR) Land possession Certificate (LPC) etc.) and/ or applicable contract/agreement details/
other documents notified/ permitted by concerned State Government should be provided at the time of enrollment.
5. Service Tax is exempted for this scheme.
The Scheme operates on the principle of “Area Approach” in the selected Defined Areas which are called Insurance Unit (IU), basis Crops and Defined Areas in accordance with decision taken in the State level coordination committees on crop insurance of the respective State/UT Government . These units are notified as insurance unit applicable to Village/Village Panchayat or any other equivalent unit for major crops. For other all other crops it may be a unit of size above the level of Village/ Village Panchayat.
The main claims payout would be made, basis the Area Approach, subject to the following: