As India modernizes its agricultural sector and moves towards a more sustainable future, the government has implemented several initiatives to protect farmers from crop loss. One such scheme is the Comprehensive Crop Insurance Scheme (CCIS), which provides insurance coverage for various crops grown in India.
Comprehensive Crop Insurance Scheme in India
What is the Comprehensive Crop Insurance Scheme?
The Comprehensive Crop Insurance Scheme (CCIS) is a national insurance program in India that provides crop insurance to farmers in India. The Indian government operates the program. In addition, this scheme also helps to minimize cases of drought by helping increase crop production in areas where natural disasters can occur.
CCIS was launched in India in 2016. The scheme provides farmers insurance coverage for losses due to unfavorable weather conditions, pests, and diseases. The premium for the insurance is subsidized by the government, making it affordable for farmers. The CCIS has helped reduce the financial burden on farmers in India and has successfully increased agricultural production.
What are the Objectives of the CCIS Scheme?
The Comprehensive Crop Insurance Scheme (CCIS) in India has become an important tool in the risk management arsenal of Indian farmers. The scheme protects farmers against yield losses from unforeseen events such as adverse weather conditions, pests, and diseases. The objectives of the scheme are;
- To provide financial support to farmers in the event of crop loss due to natural calamities, pests, and diseases;
- To encourage farmers to adopt new technologies and practices by insuring them against risks associated with these innovations.
How Does the Crop Insurance Scheme Work in India?
Under the CCIS, farmers can insure their crops against loss due to natural calamities such as droughts, floods, and cyclones. The scheme also covers unseasonal rains and hailstorms. The premium for crop insurance is subsidized by the government, making it affordable for farmers. To avail of the scheme, farmers must first register themselves with AIC.
They then need to select a crop insurance policy that suits their needs. Once the policy is purchased, farmers must pay the premium and submit all required documents to AIC. Once the season starts, farmers must notify AIC (Agricultural Insurance Company of India Ltd.) of any area under cultivation.
In case of crop loss due to a natural calamity, farmers must intimate AIC within 15 days of the event. A claim form must be filled out and submitted along with supporting documents such as pictures of damaged crops, police FIRs (in case of theft), and death certificates (in case of livestock loss). AIC will determine the claim amount based on an assessment by agricultural experts. Farmers will then be paid the sum insured or the loss incurred (whichever is less).
In case you missed it: National Agricultural Insurance Scheme in India: Eligibility and How to Apply
The Need for Comprehensive Crop Insurance in India
There are many reasons why a farmer might need crop insurance. One reason is that the farmer may not have the resources to pay for crop losses out of their pocket. In addition, the farmer may not be able to get a loan from the bank to cover these losses. Without crop insurance, the farmer would likely go bankrupt.
Another reason a farmer needs crop insurance is the risk involved in farming. Many things can go wrong during the growing season that is out of the farmer’s control, such as weather conditions or pests. If the crop is damaged or destroyed, the farmer cannot sell it and make a profit.
The final reason crop insurance is important is that it helps stabilize farm incomes. When farmers have a good year, they make money hand over fist. But when they have a bad year, they can lose everything. This volatility makes it difficult for farmers to plan for their future and make long-term investments. Crop insurance gives farmers peace of mind by providing a safety net in case of a calamity.
Who is Eligible for the Comprehensive Crop Insurance Scheme?
It aims to provide insurance coverage to farmers against crop losses due to unfavorable weather conditions. They are not required to pay any premium for the insurance coverage. Under the scheme, farmers have an insurance cover of up to Rs. 5 lahks per hectare. The government pays 2% of the sum insured as a premium subsidy, while the farmer bears the remaining premium. In case of crop loss, farmers will receive compensation equal to the sum insured.
Benefits of the Comprehensive Crop Insurance Scheme
- The scheme provides financial security to farmers in the event of crop loss due to natural calamities such as floods, droughts, cyclones, etc.
- The government subsidizes the premiums under the scheme, making them affordable for farmers. The claims settlement is quick and efficient, ensuring that farmers get the compensation they are entitled to in a timely manner.
- It offers enhanced coverage compared to other crop insurance schemes in India, making it a more comprehensive option for farmers.
- The scheme financially supports farmers in crop loss due to natural calamities, pests, and diseases.
- The scheme covers all food crops and oilseeds grown in notified areas.
- The scheme offers insurance coverage at a subsidized premium rate.
- The scheme provides for early claims settlement.
- The scheme has been designed to protect farmers from production risks and help them stabilize their incomes.
Are There Any Challenges in the Comprehensive Crop Insurance Scheme?
One challenge is that the scheme is only available to farmers with bank accounts. This means that many small farmers who do not have a bank account are not able to take advantage of the scheme. Another challenge is that the premiums for insurance are high, which can be a deterrent for some farmers. Finally, there is the challenge of ensuring that all eligible farmers know how the scheme can benefit them.
In case you missed it: How to Apply for Crop Insurance in Karnataka
How to Apply Comprehensive Crop Insurance Scheme?
- Farmers must contact their local insurance company or broker to get started.
- Next, they must fill out an application form and provide supporting documents.
- Lastly, they will need to pay the premium.
Conclusion
Indian farmers have widely praised the CCIS as it offers an effective way to safeguard their crops and livelihoods against the risks of natural disasters, pests, and diseases. Furthermore, it also helps to stabilize prices in times of market instability. By providing them with increased protection and financial security, this scheme has enabled farmers to be less reliant on external sources of income and concentrate more on improving their agricultural practices.
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