National Agricultural Insurance Scheme in India: Eligibility and How to Apply

The National Agricultural Insurance Scheme (NAIS) is a crop insurance program launched by the Government of India in 1999-2000. The scheme provides financial protection to farmers against losses due to crop failure due to natural calamities, pests & diseases. It covers both pre-harvest and post-harvest risks. The government subsidizes the premium for insurance coverage to make it affordable for farmers.

National Agricultural Insurance Scheme in India

Objectives of the National Agricultural Insurance Scheme

This scheme aims to protect farmers financially against crop loss due to pests, natural calamities, and diseases. The scheme covers all food crops and commercial crops grown in notified areas.
Under the NAIS, farmers must pay a premium of 2% – 5% of the sum insured, depending on the crop and the insurance company. The government provides a 30% – 50% subsidy for farmers’ premiums. In case of crop loss, farmers are compensated for their loss up to a maximum sum insured. The scheme covers all crops and is implemented by the Agricultural Insurance Company of India.
NAIS has helped reduce the financial risks farmers face and has contributed to increased agricultural production and productivity. It has also helped in stabilizing farm incomes and promoting rural development.
The National Agricultural Insurance Scheme is a program of the Indian government that aims to provide financial protection to farmers against crop loss due to natural calamities. The scheme covers all crops and is implemented by the Agricultural Insurance Company of India.

Main Features of the National Agricultural Insurance Scheme

The scheme covers over 50 crops, including cereals, pulses, oilseeds, cotton, jute, and tobacco. Farmers can choose from a range of insurance products that suit their needs. For example, the Comprehensive Crop Insurance Scheme covers pre-harvest and post-harvest risks.

NAIS has helped to increase farmer confidence and reduce financial losses due to crop failure. The scheme has also contributed to the growth of the agricultural sector by providing risk mitigation tools for farmers. The scheme has some main features;

Insurance coverage for all crops grown in notified areas;
Protection against yield losses due to multiple perils;
A simple premium rate structure; and
Prompt claims settlement.

Under the scheme, farmers can purchase insurance policies for their crops from any of the participating insurers. The premium rates are set by the government and vary depending on the crop, location, and type of policy. The government also subsidizes a portion of the premium for small and marginal farmers. Claims are settled based on actual losses incurred by farmers. In most cases, claims are paid out within 30 days of loss notification. The scheme has helped many farmers recover from crop losses caused by natural disasters.

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Components of the National Agricultural Insurance Scheme

Crop insurance covers losses due to yield loss or crop damage due to natural calamities, pests, and diseases.
Weather-based insurance protects farmers against yield loss due to extreme weather conditions such as drought, flood, heatwave, or coldwave.
Livestock insurance covers the death or disease of livestock due to natural causes or accidents.

The premium for crop insurance is calculated based on the crop type, cultivation area, and irrigation status. For weather-based insurance, the premium is calculated based on historical weather data and expected weather conditions for the current year. For livestock insurance, the premium is calculated based on the type of animal, age, and location. Farmers can purchase insurance policies from any licensed insurer or agent.

How Does the National Agricultural Insurance Scheme Work?

The scheme works on the principle of area approach, meaning that all farmers growing a particular crop in a notified area are eligible for coverage. Farmers need to pay an annual premium based on their crops’ value and the degree of risk involved. In case of crop loss due to any of the covered risks, farmers are compensated for their losses up to a maximum sum insured.

The NAIS has helped reduce the financial burden on farmers in times of crop loss and has helped stabilize farm incomes. It has also increased farmer awareness about crop insurance and encouraged more farmers to enroll in the scheme.

Who is Eligible for the NAIS Scheme?

Under the NAIS, farmers must pay a premium for insuring their crops. The premium rate varies depending on the crop, season, and location. Farmers can choose to insure their entire crop or a part of it. The scheme offers two types of insurance products – Area Yield Based Policy and Seasonal Yield Based Policy.

Area Yield Based Policy protects farmers against yield losses due to adverse weather conditions in a particular area. Seasonal Yield Based Policy protects farmers against yield losses across the country. The NAIS is open to all Indian citizens engaged in agricultural activities. Eligibility Criteria for NAIS:

Farmers who have cultivated notified crops in notified areas are eligible for coverage under the NAIS.
The farmer must be a cooperative or primary agricultural credit society member participating in the scheme.
The farmer must have paid the prescribed premium for the crop insurance cover.

How to Apply for the National Agricultural Insurance Scheme?

The National Agricultural Insurance Scheme (NAIS) in India is a crop insurance program that covers farmers against yield losses due to unforeseen events such as natural calamities, pests, and diseases. The NAIS is open to all farmers who grow notified crops in notified areas. Farmers can apply for the scheme through any participating insurance companies or intermediaries.

They must submit evidence of their landholdings, crop cultivation, and an application fee. Farmers will need to pay a premium for the insurance coverage. The government sets premium rates that differ for each crop and region. Farmers will also need to pay a small amount towards the hazard fund, which covers claims in case of widespread calamities.

Once enrolled, farmers will be issued a policy document outlining the insurance cover terms and conditions. In case of crop loss, farmers must submit a claim form and supporting documents within 30 days of the event. The insurance company will process and settle claims within 60 days of receipt.

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Conclusion

The National Agricultural Insurance Scheme in India is an important tool for farmers to protect their crops from natural disasters and to get financial assistance if there are losses due to such disasters. This scheme not only provides economic security for the millions of Indian farmers but also helps them secure better yields and increase their income. Government policies, technology advancements, and insurance schemes like NAIS can ensure that the agricultural sector remains a key driver of India’s economy into the future.

National Agricultural Insurance Scheme in India: Eligibility and How to Apply