National Agricultural Insurance Scheme (NAIS)
The National Agricultural Insurance Scheme (NAIS) was introduced from 1999-2000 replacing the erstwhile Comprehensive Crop Insurance Scheme (CCIS). The main objective of the scheme is to protect the farmers against crop losses suffered on account of natural calamities such as drought, flood, hailstorm, cyclone, fire pests and diseases.
The new scheme is now available to all the farmers—loanee and non-loanee—irrespective of their size of holding. It envisages coverage of all the Food Crops (Cereals, Millets and pulses), oilseeds and annual horticultural/commercial crops, in respect of which past yield data is available for adequate number of years.
The objectives of the NAIS are as under:
- 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 & diseases.
- To encourage the farmers to adopt progressive Farming practices, high value in-puts and higher technology in agriculture.
- To help stabilise farm incomes, particularly in disaster years.
Crops covered
The Crops in the following broad groups in respect of which
- The past yield data based on Crop Cutting Experiments (CCEs) is available for adequate number of years, and
- Requisite number of CCEs are conducted for estimating the yield during the proposed season: a. Food crops (Cereals, Millets & Pulses) b. Oilseeds c. Sugarcane, Cotton & Potato (Annual Commercial / annual Horticultural crops)
Other annual Commercial / annual Horticultural crops subject to availability of past Yield data will be covered in a period of three years. However, the crops which will be covered next year will have to be spelt before the close of preceding year.
States and areas to be covered
The Scheme extends to all States and Union Territories. The States / UTs opting for the Scheme would be required to take up all the crops identified for coverage in a given year. The States / Union Territories once opting for the Scheme, will have to continue for a minimum period of three years.
Limit of coverage
The Sum Insured may extend to the value of the threshold yield of the insured crop at the option of the insured farmers. However, a farmer may also insure his crop beyond value of threshold yield level upto 150% of Average yield of notified area on payment of premium at commercial rates. In case of Loanee farmers the Sum Insured would be at least equal to the amount of crop loan advanced.
Weather Based Crop Insurance Scheme (WBCIS)
The efforts have been made to bring more farmers under the fold of Crop Insurance by introducing a Pilot Weather Based Crop Insurance Scheme (WBCIS) as announced in the Union Budget 2007 in selected areas on pilot basis.
WBCIS is intended to provide insurance protection to the farmers against adverse weather incidence, such as deficit and excess rainfall, high or low temperature, humidity etc. which are deemed to impact adversely the crop production. It has the advantage to settle the claims within shortest possible time.
The WBCIS is based on actuarial rates of premium but to make the scheme attractive, premium actually charged from farmers have been restricted to at par with NAIS. The difference between actuarial rates and premium actually paid by farmers are borne by the Government (both Centre and State concerned on 50:50 basis).
Restructured WBCIS was launched on 18th February 2016 by Hon’ble Prime Minister 12 states implemented the scheme in Kharif 2016 whereas 9 states have implemented the scheme in Rabi 2016-17. Approximately 15 lakhs farmers have been insured in the Kharif 2016 for 16.95 lakh ha of land at premium of Rs983.96 crore for a sum insured of Rs8536.53 crore as per figures available on 31.03.2017. Weather Based Crop Insurance Scheme (WBCIS) aims to mitigate the hardship of the insured farmers against the likelihood of financial loss on account of anticipated crop loss resulting from adverse weather conditions relating to rainfall, temperature, wind, humidity etc. WBCIS uses weather parameters as “proxy‟ for crop yields in compensating the cultivators for deemed crop losses. Pay-out structures are developed to the extent of losses deemed to have been suffered using the weather triggers. Weather Station (RWS) or Backup Weather Station (BWS) as the case may be, and the claims process shall commence once the weather data is received. Claims processing are strictly as per the insurance term sheets, payout structure and the Scheme provisions. All standard Claims are processed and paid within 45 days from the end of the risk period. The scheme is being administered by Ministry of Agriculture.,
Crop insurance is a type of insurance that protects farmers against losses due to crop failure. It is a form of risk management that can help farmers to stay in business and continue to produce food for the nation.
There are two main types of crop insurance in India: the National Agricultural Insurance Scheme (NAIS) and the Weather Based Crop Insurance Scheme (WBCIS).
The NAIS is a government-sponsored scheme that provides insurance against a wide range of risks, including drought, flood, hail, and pest infestation. The WBCIS is a newer scheme that provides insurance against losses due to extreme weather events, such as floods and droughts.
Both schemes are voluntary, but they are heavily subsidized by the government. This means that farmers can purchase insurance at a much lower cost than they would otherwise.
The NAIS is the more popular of the two schemes, with over 30 million farmers enrolled. The WBCIS is still relatively new, but it is growing in popularity.
Both schemes have their own advantages and disadvantages. The NAIS is more comprehensive, but it is also more expensive. The WBCIS is less expensive, but it covers a narrower range of risks.
The best type of crop insurance for a farmer will depend on their individual circumstances. Farmers should carefully consider their needs and risks before choosing a scheme.
National Agricultural Insurance Scheme (NAIS)
The National Agricultural Insurance Scheme (NAIS) is a government-sponsored crop insurance scheme that provides insurance against a wide range of risks, including drought, flood, hail, and pest infestation. The NAIS is the most popular crop insurance scheme in India, with over 30 million farmers enrolled.
The NAIS is a voluntary scheme, but it is heavily subsidized by the government. This means that farmers can purchase insurance at a much lower cost than they would otherwise. The premium rates for the NAIS are determined by a number of factors, including the type of crop, the area under cultivation, and the level of risk.
The NAIS provides a number of benefits to farmers. These benefits include:
- Protection against losses due to crop failure
- Financial assistance to help farmers recover from crop losses
- Access to credit
- Technical assistance
To be eligible for the NAIS, farmers must meet a number of eligibility criteria. These criteria include:
- The farmer must be a member of a registered cooperative Society
- The farmer must own or lease land
- The farmer must cultivate at least one hectare of land
- The farmer must grow a crop that is covered by the NAIS
Farmers can apply for the NAIS through their local cooperative society. The application process is relatively simple and straightforward. Farmers will need to provide a number of documents, including their land records, crop details, and bank account information.
The NAIS is a valuable tool for farmers who want to protect themselves against the risk of crop failure. The scheme provides a number of benefits to farmers, including financial assistance, access to credit, and technical assistance. Farmers who are interested in the NAIS should contact their local cooperative society for more information.
Weather Based Crop Insurance Scheme (WBCIS)
The Weather Based Crop Insurance Scheme (WBCIS) is a government-sponsored crop insurance scheme that provides insurance against losses due to extreme weather events, such as floods and droughts. The WBCIS is a newer scheme than the NAIS, but it is growing in popularity.
The WBCIS is a voluntary scheme, but it is heavily subsidized by the government. This means that farmers can purchase insurance at a much lower cost than they would otherwise. The premium rates for the WBCIS are determined by a number of factors, including the type of crop, the area under cultivation, and the level of risk.
The WBCIS provides a number of benefits to farmers. These benefits include:
- Protection against losses due to extreme weather events
- Financial assistance to help farmers recover from crop losses
- Access to credit
- Technical assistance
To be eligible for the WBCIS, farmers must meet a number of eligibility criteria. These criteria include:
- The farmer must be a member of a registered cooperative society
- The farmer must own or lease land
- The farmer must cultivate at least one hectare of land
- The farmer must grow a crop that is covered by the WBCIS
Farmers can apply for the WBCIS through their local cooperative society. The application process is relatively simple and straightforward. Farmers will need to provide a number of documents, including their land records, crop details, and bank account information.
The WBCIS is a valuable tool for farmers who want to protect themselves against the risk of extreme weather events. The scheme provides a number of benefits to farmers, including financial assistance, access to credit, and technical assistance. Farmers who are interested in the WBCIS should contact their local cooperative society for more information.
What is crop insurance?
Crop insurance is a type of insurance that protects farmers against losses due to crop failure. It is a voluntary program that is offered by the federal government and private insurers.
Who is eligible for crop insurance?
Farmers who plant crops in the United States are eligible for crop insurance. To be eligible, farmers must meet certain requirements, such as having a certain amount of land in production and having a certain level of income.
What types of crops are covered by crop insurance?
A wide variety of crops are covered by crop insurance, including corn, soybeans, wheat, cotton, rice, and peanuts.
How much does crop insurance cost?
The cost of crop insurance varies depending on the type of crop, the location of the farm, and the level of coverage. Farmers can purchase crop insurance through private insurers or through the federal government’s Risk Management Agency (RMA).
How does crop insurance work?
Crop insurance works by providing farmers with a financial guarantee against losses due to crop failure. If a farmer’s crop fails due to drought, flood, or other natural disaster, the farmer will receive a payment from the insurance company.
What are the benefits of crop insurance?
Crop insurance provides farmers with financial protection against losses due to crop failure. This can help farmers stay in business and continue to produce food for the nation. Crop insurance can also help to stabilize farm income and reduce the risk of bankruptcy.
What are the drawbacks of crop insurance?
Some people argue that crop insurance is too expensive and that it encourages farmers to plant too much land in high-risk areas. Others argue that crop insurance is not effective enough and that it does not provide enough protection for farmers.
What is the future of crop insurance?
The future of crop insurance is uncertain. The federal government is currently considering changes to the crop insurance program. It is possible that the program will be made more expensive or that it will be made less available to farmers.
Which of the following is not a type of crop insurance scheme?
(A) National Agricultural Insurance Scheme (NAIS)
(B) Weather Based Crop Insurance Scheme (WBCIS)
(C) Weather Insurance Scheme (WIS)
(D) Crop Insurance Scheme for Farmers (CISF)Which of the following is the objective of the National Agricultural Insurance Scheme (NAIS)?
(A) To provide financial assistance to farmers in the event of crop failure due to natural calamities
(B) To encourage farmers to adopt modern agricultural practices
(C) To increase the productivity of agriculture
(D) To reduce the risk of crop failureWhich of the following is the main difference between the National Agricultural Insurance Scheme (NAIS) and the Weather Based Crop Insurance Scheme (WBCIS)?
(A) NAIS is a government-sponsored scheme, while WBCIS is a private sector scheme
(B) NAIS provides insurance against crop failure due to all natural calamities, while WBCIS provides insurance against crop failure due to weather-related calamities only
(C) NAIS is a comprehensive scheme, while WBCIS is a partial scheme
(D) NAIS is a mandatory scheme, while WBCIS is a voluntary schemeWhich of the following is the main advantage of the National Agricultural Insurance Scheme (NAIS)?
(A) It provides financial assistance to farmers in the event of crop failure
(B) It encourages farmers to adopt modern agricultural practices
(C) It increases the productivity of agriculture
(D) It reduces the risk of crop failureWhich of the following is the main disadvantage of the National Agricultural Insurance Scheme (NAIS)?
(A) It is a government-sponsored scheme, which means that it is subject to government Bureaucracy
(B) It is a comprehensive scheme, which means that it is expensive
(C) It is a mandatory scheme, which means that farmers are required to purchase it
(D) It is not available in all parts of the countryWhich of the following is the main advantage of the Weather Based Crop Insurance Scheme (WBCIS)?
(A) It is a private sector scheme, which means that it is not subject to government bureaucracy
(B) It is a partial scheme, which means that it is less expensive
(C) It is a voluntary scheme, which means that farmers are not required to purchase it
(D) It is available in all parts of the countryWhich of the following is the main disadvantage of the Weather Based Crop Insurance Scheme (WBCIS)?
(A) It provides insurance against crop failure due to weather-related calamities only
(B) It is not as comprehensive as the National Agricultural Insurance Scheme (NAIS)
(C) It is not available in all parts of the country
(D) It is not as well-known as the National Agricultural Insurance Scheme (NAIS)Which of the following is the main reason for the low adoption of crop insurance schemes in India?
(A) Farmers are not aware of the schemes
(B) Farmers do not trust the schemes
(C) The schemes are too expensive
(D) The schemes are not available in all parts of the countryWhich of the following is the main measure that can be taken to increase the adoption of crop insurance schemes in India?
(A) Increase awareness of the schemes
(B) Improve the trust of farmers in the schemes
(C) Reduce the cost of the schemes
(D) Make the schemes available in all parts of the countryWhich of the following is the main impact of crop insurance schemes on Agriculture In India?
(A) Crop insurance schemes have helped to reduce the risk of crop failure
(B) Crop insurance schemes have helped to increase the productivity of agriculture
(C) Crop insurance schemes have helped to reduce the cost of agriculture
(D) Crop insurance schemes have helped to increase the income of farmers