GoM vets new crop insurance scheme

Highlights

A group of ministers headed by Home Minister Rajnath Singh on Friday discussed the proposed new crop insurance scheme that aims to bring down premium charges up to 3 per cent and provide maximum coverage for crops to farmers.

New Delhi : A group of ministers headed by Home Minister Rajnath Singh on Friday discussed the proposed new crop insurance scheme that aims to bring down premium charges up to 3 per cent and provide maximum coverage for crops to farmers.

Under the existing crop insurance schemes NAIS and MNAIS, insurance companies on an average are charging premium in the range of 1-20 per cent of the value of crops.

Of the total premium fixed by insurers, farmers are paying a premium of up to 3.5 per cent and 8 per cent for NAIS and MNAIS, respectively, and the rest is borne by government.

According to sources, the GoM deliberated on bringing down the crop insurance premium to below five per cent from the existing levels as well as on insurance payment to farmers in the shortest possible time.

The panel also discussed about fixing premium based on rainfed, irrigated and hilly areas, and also emphasised on the need to put in place a proper implementation mechanism to ensure crop insurance is made compulsory for all so that farmers' interest is protected, they added.

Under the Modified National Agricultural Insurance Scheme (MNAIS), premiums are capped at 13 per cent in most vulnerable areas for kharif crops, while at 11 per cent for rabi crops.

The proposed scheme will be available to both loanees and non-loanees. It would be compulsory for loanee farmers to avail crop loan from financial institutions. Even private insurers would be allowed to offer the scheme.

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