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  • Agricultural insurance schemes are extremely important for Indian agriculture due to enormous risk and uncertainty faced by it on account of many natural calamities like droughts, flood, cyclones, erratic rainfall, raising temperatures, agro-climatic variations etc.

Comprehensive Crop Insurance Scheme (CCIS)

  • It was launched by the Central Government in 1985 at the beginning of the Seventh Five Year Plan to compensate the farmer for crop loss due to natural calamities and at the same time making him eligible for fresh institutional loan.  INDIAN AGRICULTURAL INSURANCE
  • The scheme was administered by the General Insurance Cooperation (GIC).
  • Initially, CCIS provided for assurance of a sum, which was equal to 150% of the crop loan disbursed by the financial institution, which was later decreased to 100% in 1988 with a further ceiling of Rs. 10,000 as total compensation payable.

 National Crop Insurance Programme

The central sector NCIP replaced the National Agriculture Insurance scheme from November 2013. It is approved for full fledged implementation from Rabi 2013-14. It has three components:

Pilot modified national agriculture insurance scheme

  • Pilot Weather based Crop Insurance Scheme
  • Pilot Coconut Palm Insurance Scheme

Weather — Based Crop Insurance Scheme (WBCIS)

  • After being announced in the Union Budget for 2007-08, WBCIS was implemented in the selected areas of Karnataka on a pilot basis.
  • The scheme aims to provide insurance protection to farmers against adverse incidences, such as deficits and excess rainfall which are deemed to adversely impact the crop-production.
  • It has the advantage to settle the claims within the shortest possible time.
  • WBCIS is based on actuarial rates of premium but to make the scheme attractive, premium actually charged from farmers is ‘at par’ with NAIS.  INDIAN AGRICULTURAL INSURANCE
  • After the implementation of WBCIS in Karnataka in Kharif -2007, the Agricultural Insurance Company of India Ltd. (AICIL), is implemented it in 10 other states during the Kharif 2008 season.
  • In addition to AICIL, private insurers like ICIC1 — Lombard General Insurance Company and IFFCO — Tokio General Insurance Company have also been included for implementation of this scheme in selected areas.

Krishi Shramik Suraksha Yojana (KSSY)

  • The scheme, started in July 2001, provides insurance protection, periodical lump sum survival benefit and pension to the agricultural workers.
  • Gram Panchayat acts as nodal agency which can be supported by other agencies like NGOs or SHGs to identify the agricultural labourers.
  • The scheme covers about 30,000 agricultural workers and sale of new policies have been discontinued since December 2003.

Farm Income Insurance Scheme (FIIS)

  • The scheme started in January 2004, provides insurance safeguards and economic security to the farmers.
  • FIIS was introduced jointly by Ministry of Agriculture and AICIL. The scheme aims to provide income protection to the farmers by integrating the mechanism of insuring production as well as market risks.
  • The farmers are protected by ensuring minimum guaranteed income which is the product of average yield and minimum support prices.
  • If the actual income of the farmers falls short of this income, they are eligible for compensation to the extent of indemnity from AICIL.
  • The scheme was implemented on a pilot basis during Rabi 2003-04 in selected district of 12 states for two crops viz. wheat and paddy.
  • The scheme would be compulsory for farmers availing crop loans. NAIS will be withdrawn for the crops covered under FIIS but would continue to be applicable for other crops. INDIAN AGRICULTURAL INSURANCE


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