Unified Package Insurance Scheme in India: Benefits, Coverage, How to Apply, and Eligibility

The Indian government has recently launched the Unified Package Insurance Scheme for the agriculture sector. This new initiative aims to provide comprehensive coverage against various risks in crop cultivation and allied activities. The scheme protects against crop loss due to natural calamities, pests, and diseases. It also covers livestock insurance and post-harvest losses. In addition, the UPIS offers insurance for irrigation equipment and farm machinery.

Unified Package Insurance Scheme in India

What is Unified Package Insurance Scheme?

The Unified Package Insurance Scheme (UPIS) was launched by the Indian Ministry of Agriculture and Farmers Welfare in 2016. The scheme aims to provide a comprehensive insurance scheme to cover farmers against crop loss due to pests/diseases, natural calamities, and livestock mortality. The scheme has two components – crop insurance and livestock insurance.

Crop insurance covers crops against loss due to natural calamities such as floods, droughts, landslides, etc. Livestock insurance covers animals against death due to accidents, diseases, etc. The government subsidizes the crop insurance component premium at 2% for small and marginal farmers and 5% for other farmers. For the livestock insurance component, the premium is subsidized at 50% for all farmers.

Benefits of the Unified Package Insurance Scheme

The scheme will provide farmers with comprehensive insurance coverage at an affordable premium. In the occurrence of crop loss due to natural calamities, farmers will be compensated for their loss. The scheme will also cover post-harvest losses and liabilities arising from farm operations.
The scheme is expected to increase farmers’ income and reduce their dependence on subsidies. It will also help stabilize the agricultural sector by providing a safety net to farmers against crop losses.
It will provide comprehensive insurance cover for farmers against crop loss/damage due to adverse weather conditions, pests & diseases.
It will also provide insurance coverage for post-harvest losses.
The scheme will be implemented on a pilot basis in selected districts of Andhra Pradesh, Maharashtra, Madhya Pradesh, Gujarat, Karnataka, Rajasthan, and Uttar Pradesh.

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Coverage Under the Unified Package Insurance Scheme

The government has devised a comprehensive insurance scheme for the agricultural sector called the Unified Package Insurance Scheme (UPIS). The scheme will provide insurance cover for all stages of crop cultivation, from sowing to harvesting.

How to Apply for Unified Package Insurance Scheme?

To apply for the UPIS, you should complete an application form and apply to the concerned authorities. The application process is simple, and you should receive a decision on your coverage within a few days. Once approved for the scheme, you must pay the premiums per your policy’s terms.
Farmers must submit an application form along with certain documents such as proof of land ownership, identity proof, etc. Once the application is received, the insurance company will assess it and provide a quotation for the premium amount.
The farmer can then pay the premium and avail of the insurance coverage. In case of any eventuality covered under the policy, the farmer can claim by submitting relevant supporting documents. The insurance company will pay out the claim amount after due verification.
Under UPIS, farmers are provided insurance cover for crops, livestock, and other agricultural assets. The scheme also covers post-harvest losses and benefits such as personal accident cover and medical expenses. The Central government implements the scheme through the Agriculture Insurance Company of India (AIC).
To avail of the benefits under UPIS, farmers need to register with the AIC and pay an annual premium. The premium amount is calculated based on the crop type, cultivation area, and other factors. Farmers can also avail of a subsidy on the premium amount from the government.

Objectives of the Unified Package Insurance Scheme

The scheme’s main objective is to provide farmers with comprehensive insurance coverage against crop loss due to natural calamities, pests, and diseases. The scheme also covers post-harvest losses and livestock insurance. In addition, the UPIS provides insurance for irrigation equipment and machinery used in agricultural operations.
The scheme’s objectives are to provide comprehensive insurance coverage to the agriculture sector, simplify the process of registering for and paying premiums, and provide a subsidy on the premium amount from the government.
The Unified Package Insurance Scheme in India is a government-backed insurance program that offers comprehensive coverage for farmers against crop loss/damage due to adverse weather conditions, pests & diseases, and post-harvest losses.

Who is Eligible for the Unified Package Insurance Scheme?

Be between 18-70 years old,
Own at least 0.5 hectares of land which is used for farming purposes only,
Have paid a premium for at least two years under any crop insurance scheme, and
Not have any pending loan from any financial institution.

Importance of Unified Package Insurance Scheme

The Unified Package Insurance Scheme in India is a package of insurance products specifically designed to cater to the needs of farmers. This scheme provides comprehensive coverage for crops, livestock, and other farm-related assets. It also offers personal accident cover for the farmer and their family members. The Agricultural Insurance Company of India Ltd (AIC) implements the scheme.

The scheme is an important safety net for farmers, protecting them against financial losses due to crop failure or damage caused by natural calamities. The unified package insurance scheme is thus an important tool in mitigating risks associated with agriculture and ensuring food security in India.

In case you missed it: Private Crop Insurance Companies in India

The UPIS is an important part of the government’s efforts to support the agriculture sector and ensure food security for the country. It is one of several schemes introduced in recent years to help farmers cope with climate change, market volatility, and declining soil fertility. The scheme has helped increase agricultural production and incomes, and it is expected to continue to do so.

Conclusion

The Unified Package Insurance Scheme in India is a comprehensive insurance package that offers protection against various risks. It is designed to help farmers in crop loss/damage, post-harvest losses, and personal accident. The scheme also encourages farmers to adopt risk-mitigating practices such as improved seeds and better farming practices.

Unified Package Insurance Scheme in India: Benefits, Coverage, How to Apply, and Eligibility