|
National Agricultural Insurance Scheme (NAIS) or
Rashtriya Krishi Bima Yojana (RKBY)
Objectives :
- The objectives of the RKBY 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.
Salient Features of the Scheme :
1. Crops Covered :
- The Crops in the following broad groups in respect of which i) the
past yield data based on Crop Cutting Experiments (CCEs) is available
for adequate number of years, and ii) requisite number of CCEs are
conducted for estimating the yield during the proposed season:
- Food crops (Cereals, Millets & Pulses)
- Oilseeds
- 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.
2. 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.
- Exit clause: The States / Union Territories once opting for the
Scheme, will have to continue for a minimum period of three years.
3. Farmers to be Covered :
- All farmers including sharecroppers, tenant farmers growing the
notified crops in the notified areas are eligible for coverage.
- The Scheme covers following groups of farmers:
- On a compulsory basis :All farmers growing notified crops and
availing Seasonal Agricultural Operations (SAO) loans from Financial
Institutions i.e. Loanee Farmers.
- On a voluntary basis: All other farmers growing notified crops
(i.e., Non-Loanee farmers) who opt for the Scheme.
4. Risks Covered & Exclusions :
- Comprehensive risk insurance will be provided to cover yield losses
due to non-preventable risks, viz.:
- Natural Fire and Lightning
- Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado
etc.
- Flood, Inundation and Landslide
- Drought, Dry spells
- Pests/ Diseases etc.
- Losses arising out of war & nuclear risks, malicious damage
& other preventable risks shall be excluded.
5. Sum Insured / Limit of Coverage :
- The Sum Insured (SI) 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 atleast equal to
the amount of crop loan advanced.
- Further, in case of Loanee farmers, the Insurance Charges shall be
an additionality to the Scale of Finance for the purpose of obtaining
loan.
- In matters of Crop Loan disbursement procedures, guidelines of RBI /
NABARD shall be binding.
6. Premium Rates :
|
S.No
|
Season
|
Crops
|
Premium rate
|
|
1
|
Kharif
|
Bajra & Oilseeds
|
3.5% of SI or Actuarial rate, whichever is less
|
| |
|
Other crops (cereals, other millets & pulses)
|
2.5% of SI or Actuarial rate, whichever is less
|
|
2
|
Rabi
|
Wheat
|
1.5% of SI or Actuarial rate, whichever is less
|
| |
|
Other crops (other cereals, millets, pulses &
oilseeds)
|
2.0% of SI or Actuarial rate, whichever is less
|
|
3
|
Kharif & Rabi
|
Annual Commercial / annual Horticultural crops
|
Actuarial rates
|
- Transition to the actuarial regime in case of cereals, millets,
pulses & oilseeds would be made in a period of five years. The
actuarial rates shall be applied at District / Region / State level at
the option of the State Govt./UT.
7. Premium subsidy :
- 50% subsidy in premium is allowed in respect of Small & Marginal
farmers, to be shared equally by the Government of India and State/UT
Govt. The premium subsidy will be phased out on sunset basis in a period
of three to five years subject to review of financial results and the
response of farmers at the end of the first year of the implementation
of the Scheme.
- The definition of Small and Marginal farmer would be as follows:
Small Farmer:
- A Cultivator with a land holding of 2 hectares (5 acres) or less, as
defined in the land ceiling legislation of the concerned State/ UT.
Marginal Farmer:
- A Cultivator with a land holding of 1 hectare or less (2.5 acres).
8. Sharing of Risk :
- Risk will be shared by Implementing Agency (IA) and the Government
in the following proportion:
- Food crops & Oilseeds: Till, complete transition to Actuarial
regime in a period of five years takes place, claims beyond 100% of
premium will be borne by the Government. Thereafter, all normal claims,
i.e. claims upto 150% of premium will be met by IA and claims beyond
150% shall be paid out of Corpus Fund for a period of three years. After
this period of three years claims upto 200% will be met by IA and above
this ceiling, out of the Corpus Fund.
- (b)Annual Commercial crops / annual Horticultural crops:
Implementing Agency shall bear all normal losses, i.e. claims upto 150%
of premium in the first three years and 200% of premium thereafter
subject to satisfactory claims experience. The claims beyond 150% of
premium in the first three years and 200% of premium thereafter shall be
paid out of Corpus Fund. However, the period of three years stipulated
for this purpose will be reviewed on the basis of financial results
after the first year of implementation and the period will be extended
to five years if considered necessary.
- To meet Catastrophic losses, a Corpus Fund shall be created with
contributions from the Government of India and State Govt / UT on 50:50
basis. A portion of Calamity Relief Fund (CRF) will be used for
contribution to the Corpus Fund.
9. Area approach and Unit of Insurance :
- The Scheme would operate on the basis of ‘Area Approach’ i.e.,
Defined Areas for each notified crop for widespread calamities and on an
individual basis for localised calamities such as hailstorm, landslide,
cyclone and flood. The Defined Area (i.e., unit area of insurance) may
be a Gram Panchayat, Mandal, Hobli, Circle, Phirka, Block, Taluka etc.
to be decided by the State/UT Govt. However, each participating
State/UT. Govt. will be required to reach the level of Gram Panchayat as
the unit in a maximum period of three years.
- Individual based assessment in case of localised calamities, to
begin with,would be implemented in limited areas on experimental basis,
initially and shall be extended in the light of operational experience
gained. The District Revenue administration will assist Implementing
Agency in assessing the extent of loss.
10. Seasonality Discipline :
- The broad seasonality discipline followed for Loanee farmers will be
as under:
|
Activity |
Kharif |
Rabi |
|
Loaning period |
April to September |
October to Next March |
|
Cut-off date for receipt Of Declarations |
November |
May |
|
Cut-off date for receipt Of yield data |
January / March |
July / September |
- The broad cut-off dates for receipt of proposals in respect of
Non-loanee farmers will be as under :
- Kharif season : 31st July
- Rabi season : 31st December
- However, seasonality discipline may be modified, if and where
necessary in consultation with State / UT and the Govt. of India.
11. Estimation of Crop Yield :
- The State/UT Govt. will plan and conduct the requisite number of
Crop Cutting Experiments (CCEs) for all notified crops in the notified
insurance units in order to assess the crop yield.
- The State / UT Govt. will maintain single series of Crop Cutting
Experiments (CCEs) and resultant Yield estimates, both for Crop
Production estimates and Crop Insurance.
- Crop Cutting Experiments (CCEs) shall be undertaken per unit area
/per crop, on a sliding scale, as indicated below :
|
Sl.No.
|
Unit Area
|
Minimum number of C.C.E.s
required to be done
|
|
1.
|
Taluka / Tehsil / Block
|
16
|
|
2.
|
Mandal / Phirka / any other smaller unit area comprising
8-10 villages
|
10
|
|
3.
|
Gram Panchayat comprising 4-5 villages
|
08
|
- A Technical Advisory Committee (T.A.C.) comprising representatives
from N.S.S.O., Ministry of Agriculture (G.O.I.) and IA shall be
constituted to decide the sample size of CCEs and all other technical
matters.
12. Levels of Indemnity & Threshold Yield :
- Three levels of Indemnity, viz., 90%, 80% & 60% corresponding to
Low Risk, Medium Risk & High Risk areas shall be available for all
crops (cereals, millets, pulses & oilseeds and annual commercial /
annual horticultural crops) based on Coefficient of Variation (C.V) in
yield of past 10 years’ data. However, the insured farmers of unit area
may opt for higher level of indemnity on payment of additional premium
based on actuarial rates.
- The Threshold yield (TY) or Guaranteed yield for a crop in an
Insurance Unit shall be the moving average based on past three years
average yield in case of Rice & Wheat and five years average yield
in case of Other crops, multiplied by the level of indemnity.
13. Nature of Coverage and Indemnity :
- If the ‘Actual Yield’ (AY) per hectare of the insured crop for the
defined area [on the basis of requisite number of Crop Cutting
Experiments (CCEs)] in the insured season, falls short of the specified
‘Threshold Yield’ (TY), all the insured farmers growing that crop in the
defined area are deemed to have suffered shortfall in their yield. The
Scheme seeks to provide coverage against such contingency.
- ‘Indemnity’ shall be calculated as per the following formula :
(
Shortfall in Yield / Threshold yield ) X Sum Insured for the farmer
{Shortfall in Yield = ‘Threshold Yield - Actual Yield' for the Defined
Area}.
13a. Indemnity in case of Localised Risks :
- Loss assessment and modified indemnity procedures in case of
occurrence of localised perils, such as hailstorm, landslide, cyclone
and flood where settlement of claims will be on individual basis, shall
be formulated by IA in coordination with State / UT. Govt.
- The loss assessment of localised risks on individual basis will be
experimented in limited areas, initially and shall be extended in the
light of operational experience gained. The District Revenue
administration will assist IA in assessing the extent of loss.
14. Procedure for approval & Settlement of claims :
- Once the Yield Data is received from the State/UT Govt. as per the
prescribed cut-off dates, claims will be worked out and settled by IA.
- The claim cheques along with claim particulars will be released to
the individual Nodal Banks. The Banks at the grass root level, in turn,
shall credit the accounts of the individual farmers and display the
particulars of beneficiaries on their notice board.
- In the context of localised phenomenon, viz., hailstorm, landslide,
cyclone and flood, the IA shall evolve a procedure to estimate such
losses at individual farmer level in consultation with DAC/ State / UT.
Settlement of such claims will be on individual basis between IA and
insured
15. Financial Support towards Administration & Operating
(A&O) expenses :
- The A&O expenses would be shared equally by the Central
Government & respective State Government on sunset basis [ 100% in
1st year, 80% in 2nd year, 60% in 3rd
year, 40% in 4th year, 20% in 5th year and ‘zero’
thereafter ].
16. Corpus Fund :
- To meet Catastrophic losses, a Corpus Fund shall be created with
contributions from the Government of India and State / UT on 50:50
basis. A portion of Calamity Relief Fund (CRF) shall be used for
contribution to the Corpus Fund.
- The Corpus Fund shall be managed by Implementing Agency (IA).
17. Re-Insurance Cover :
- Efforts will be made by IA to obtain appropriate reinsurance cover
for the proposed RKBY in the international Reinsurance market.
18. Management of the Scheme, Monitoring and review :
- In respect of Loanee farmers, the Banks shall play the same role as
under CCIS.
- In respect of non-Loanee farmers, Banks shall collect the premium
along with the Declarations and send it to IA within the prescribed time
limits. However, in areas where IA has requisite infrastructure, a
non-loanee farmer will have option to send premium along with
Declaration, directly to IA within the time limits.
- Selection of the Banks will be on the basis of Service Area Approach
(SAA) of RBI or at the option of the Banks (where Co-operative Banks
have good network). The Department of Agriculture, Agricultural
Statistics, Directorate of Economics and Statistics, Department of
Co-operation, Revenue Department of the State Government will be
actively involved in smooth implementation of the Scheme.
- The Scheme will be implemented in accordance with the operational
modalities as worked out by IA in consultation with Dept. of Agriculture
& Co-operation.
- During each crop season, the agricultural situation will be closely
monitored in the implementing States / Union Territories. The State / UT
Department of Agriculture and district administration shall set up a
District Level Monitoring Committee (DLMC), who will provide fortnightly
reports of Agricultural situation with details of area sown, seasonal
weather conditions, pest incidence, stage of crop failure {if any} etc.
- The operation of the Scheme will be reviewed annually, and
modifications as may be required would be introduced. Periodic Appraisal
Reports on the Scheme would be prepared by Ministry of Agriculture, the
Government of India / Implementing Agency.
19. Implementing Agency (IA) :
- An exclusive Organization would be set up in due course, for
implementation of RKBY. Until such time as the new set up is created,
the ‘G.I.C. of India’ will continue to function as the Implementing
Agency.
20. Benefits expected from Scheme :
- The Scheme is expected to:
- be a critical instrument of development in the field of crop
production, providing financial support to the farmers in the event of
crop failure.
- encourage farmers to adopt progressive farming practices and higher
technology in Agriculture.
- help in maintaining flow of agricultural credit.
- provide significant benefits not merely to the insured farmers, but,
to the entire community directly and indirectly through spillover and
multiplier effects in terms of maintaining production & employment,
generation of market fees, taxes etc. and net accretion to economic
growth.
- streamline loss assessment procedures and help in building up huge
and accurate statistical base for crop production.
Operational Modalities
- The State / UT Govt. intending to participate in the Yojana has to
intimate their consent thereto. The State / UT Govt. has to accept and
abide by the provisions of the Yojana in to-to as spelt out in the
Yojana text and Operational Modalities.
- A 'STATE LEVEL COORDINATION COMMITTEE ON CROP INSURANCE' (SLCCCI)
shall be formed in all the implementing States / UTs for the purpose of
overseeing implementation of the Scheme. The committee will be headed by
the Agricultural Production Commissioner (APC) or by an Official of
equal rank of the State and will include senior Officers of the State,
viz., Secretary (Agriculture), Secretary (Co-operation), Secretary
(Finance), Director, Bureau of Statistics & Economics, Registrar of
Co-operative Societies, representative of Ministry of Agriculture,
Financial Institutions including NABARD, RBI, State Apex Coop. Bank,
Convenor, State Level Bankers Committee (SLBC) and Implementing Agency
(IA).
1. Notification :
- At the beginning of each crop season, the State Government /UT
administration shall notify the Crops and Defined Areas which will be
covered during the season in accordance with the decision taken at the
SLCCCI meeting. The SLCCCI shall, for the purpose of notification,
consider factors such as availability of past Yield Data, Cropped Area
and ability to conduct requisite number of Crop Cutting Experiments
(CCEs) etc.
- In case it is proposed to notify irrigated & unirrigated areas
separately under a crop, the State Government / UT shall ensure that
minimum CCEs are planned & conducted for irrigated & unirrigated
crops, separately in such areas. In addition, past data for productivity
at Unit Area level for immediate 10 years would have to be separately
furnished to enable IA to work out premium rates.
- The State government / UT should notify the smallest possible units
as defined areas (i.e., insurance units), which is preferably, the
Village or the Gram Panchayat. In any case the States / UTs shall reach
the level of Gram panchayat within three years.
2. Collection of Proposals and Insurance Charges :
- The present Nodal Banks system under CCIS, will continue for RKBY as
well, wherein IA is not required to deal with all the loan disbursing
points and instead, deals only with designated Nodal points, mostly at
district level.
(a) Loanee farmers (Compulsory coverage) :
- For loanee farmers, the modalities will be the same as in the
existing CCIS. Whenever a bank disburses loan for an insurable crop,
additional loan towards insurance charges shall also be granted. The
disbursing branch shall prepare a Statement of monthly crop-wise and
defined area-wise details of crop insurance with insurance charges, and
remit the same to it’s Nodal Branch within 15th day of the
next month.
- The Nodal Branch, in turn, shall consolidate these Statements from
the Branches under it, and forward the same to the IA along with a Draft
for the insurance charges in accordance with monthly cut-off dates
fixed.
- For the loans disbursed through Kisan Credit Cards (KCC) which are
also eligible for coverage, Banks will have to maintain all back up
records, registers relating to compliance with RKBY and its seasonality
discipline, cut-off-date for submitting the Declarations and end use
etc. as in the case of normal crop loans. The crop loans disbursed
through KCC, but outside the purview of the provisions of the RKBY,
shall not be eligible for coverage.
- A farmer opting for Sum Insured higher than the amount of loan
availed by him shall be treated at par with Non-loanee farmer and
relevant cut-off-dates for submitting Declarations will apply. For
coverage of higher SI/higher Indemnity Limit (IL), the farmer has to
bear the difference of premium.
- Declarations formats to be submitted by Nodal banks will be
different for Loanee farmers availing sum insured upto the limit of
amount of loan availed and those Loanee farmers availing higher limit of
sum insured. The sum insured may extend to the value of the threshold
yield of the insured crop at the option of the insured farmers. Further,
a farmer may also insure his crop beyond value of threshold yield upto
150% of average yield of notified area on payment of premium for balance
sum insured at commercial rates.
- For the purpose of sum insured, average yield is reckoned as average
of past three years yield for Rice & Wheat and five years for 'Other
crops' in the notified area.
- In respect of Loanee farmers availing sum insured beyond amount of
loan availed, the details of those farmers availing sum insured beyond
value of threshold yield shall be furnished separately in a schedule in
the Declaration.
(b) Non-loanee farmers (Optional coverage) :
- Those farmers desirous of joining the Scheme will fill up Proposal
Form of the Scheme and submit the same to the village branch of a
Commercial Bank (CB) or Regional Rural Bank(RRB), or PACS (DCCB) with
the requisite insurance charge/premium amount after opening an Account
in their name or in an existing Account in their name. The functionaries
in Branch/PACS shall assist farmers in completing the Proposal form and
provide necessary guidance. While accepting the Proposal and the
insurance charges, it shall be the responsibility of such Branch / PACS
to verify the particulars of sum insured and its limit, the applicable
insurance charges etc. The Branch / PACS shall thereafter consolidate
these particulars and send them to the respective Nodal points.
- The Nodal Banks will in turn submit to the IA the Crop-wise and
Notified Area-wise Crop Insurance Declarations in the prescribed format,
(separately for non-loanee farmers) along with the Insurance
Charges/Premium, within the stipulated time.
- In respect of optional coverage (non-loanee farmers) the entire
amount of insurance charges / premium on the basis of the proposal of
the farmer shall be deposited with the Branch /PACS within the
stipulated dates and in turn, Banks would consolidate, prepare a
Declaration and forward the same to IA with premium.
(c) Receipt of proposals directly from Non-Loanee farmers
:
- On an experimental basis, (subject to infrastructure of IA), the
Non-Loanee farmers may submit the proposals personally to IA with
requisite insurance charges / premium. The IA shall then consolidate
these proposals and convert them into Declarations. However, it's
mandatory that the Non-Loanee farmers personally submitting proposals to
IA should hold a Bank account in the Service Area branch / designated
bank branch to receive compensation, if any.
- Initially, personal submission of proposals to IA shall be limited
to districts designated for experimentation of individual loss
assessment on occurrence of localised perils. The IA shall open an
office in these designated district HQs. OPTION FOR HIGHER SUM INSURED:
- Food crops & Oilseeds: Sum Insured is worked out by multiplying
the threshold yield of the crop with Minimum Support Price (MSP) or the
market price (where MSP is not available) in respect of previous year. A
farmer is eligible to cover upto the value of threshold yield of the
crop at a given premium rate. Additionally, a farmer may extend the sum
insured upto 150% of the value of the average yield of the crop on
payment of premium at commercial (actuarial) rate for the part of the
sum insured exceeding value of threshold yield.
- Annual Commercial / Horticultural crops: Sum Insured may extend upto
150% of the value of average yield of the crop at commercial (actuarial)
rate for the entire sum insured.
- In case of Loanee farmers, the minimum sum insured is the amount
of loan availed.
3) Seasonality Discipline (Submission of declarations by
Banks) :
Loanee farmers :
- Banks will send to IA every month consolidated Crop Insurance
Declarations in respect of loan disbursed to the loanee farmers for each
crop and each Defined Area. The details of SAO loans disbursed for
insurable crops during a month will be declared to IA in the form of
consolidated Declarations before end of the succeeding month. The
detailed monthly cut-off dates in respect of such declarations will be :
|
Kharif Season
|
Rabi Season
|
|
Month of Loaning
|
Cut-off date for receipt
of declarations by IA
|
Month of Loaning
|
Cut-off date for receipt
of declarations by IA
|
|
April
|
31st May
|
October
|
30th November
|
|
May
|
30th June
|
November
|
31st December
|
|
June
|
31st July
|
December
|
31st January
|
|
July
|
31st August
|
January
|
28th/29th February
|
|
August
|
30th Septeber
|
February
|
31st March
|
|
September
|
31st October
|
March
|
30th April
|
|
Final
|
30th November
|
Final
|
31st May
|
- Those loanee farmers who would like to avail a sum insured of more
than the amount of loan availed shall indicate their choice to the
Financial Institutions at the beginning of the season and for these
farmers, the cut-off dates shall be those applicable for Non-loanee
farmers.
Non-Loanee farmers:
- The broad Cut-Off dates for receipt of Proposals by the Banks / IA,
in respect of these farmers will be as under:
- a. Kharif season : 31st July
- b. Rabi season : 31st December
- In respect of these farmers, the last date of receipt of the
consolidated Proposals at IA, shall be one month after the last date for
receipt of Proposals at the Nodal Branch.
- However, within these broad parameters suggested above for all
categories of farmers the seasonality discipline may be modified in
consultation with State / UT Govt. and Govt. of India, depending on
local conditions and crop season.
4). Important Conditions applicable for Coverage of Risk
:
- Loans given for unsown areas will not be covered by the Scheme,
because, indemnity claims will arise under the Scheme, only after the
crop has been sown and in the event of crop failure. Mere disbursement
of loans by the financial institutions / submission of Proposal by a
Non-loanee farmer will not entitle him for compensation under the
Scheme.
- In the areas where crop is sown but, withered away /damaged on
account of adverse seasonal conditions / pest and / or diseases and also
where there is no possibility of reviving the crop, no further loaning
should be made by the financing institutions. Any further loaning in
such cases shall not be covered by the Scheme.
- The Scheme covers notified crops until harvesting stage only. Losses
caused to crops which are spread in the field for drying after cutting /
harvesting are excluded from the scope of the Scheme.
5). Estimation of Crop Yield :
- The Claim assessment procedure and parameters involved in estimation
of claims shall be the same for Loanee and Non-Loanee farmers as also
for food crops/oil seeds and annual commercial / annual horticultural
crops.
- The State Department will plan and conduct requisite number of CCEs
for all notified crops in the notified insurance units in order to
assess the crop yield. The State Government will notify the crops where
requisite minimum number of CCEs will be conducted in accordance with
the sliding scale given below:
|
Sl. No.
|
Size of Insurance Unit
|
Minimum Number of CCEs Required
|
|
1
|
TALUKA / TEHSIL / BLOCK
|
16
|
|
2
|
MANDAL / PHIRKA / ANY OTHER SMALLER UNIT AREA COMPRISING
8-10 VILLAGES
|
10
|
|
3
|
GRAM PANCHAYAT COMPRISING 4-5 VILLAGES
|
08
|
- The State Government / U.T. administration will maintain a single
series of CCEs for both Crop Production and Crop Insurance.
- The yield data will be furnished to IA by the State Government / UT
in accordance with the cut-off dates fixed for all crops and areas
notified, based on the TOTAL NO. of CCEs (being not less than the
minimum prescribed) conducted.
- The standard procedures for assessing the yield in respect of
multiple picking crops will be prepared by IA in consultation with the
National Sample Survey Organisation (NSSO) and circulated among
implementing States / UTs.
- A Committee comprising representatives of State/UT Govt., National
Sample Survey Organisation (NSSO) and IA will be set up at the State
level to monitor / supervise and advise in matters relating to adequacy
and quality of CCEs.
- A Technical Advisory Committee (TAC) comprising representatives from
NSSO, MOA and IA shall be constituted at National level to decide the
sample size of CCEs and also technical matters pertaining to Threshold
Yield / Actual Yield etc.
Loss Assessment in case of Localised Calamities :
- Loss assessment of localised risks, viz. hailstorm, landslide,
cyclone and floods on individual basis shall be experimented in two
districts and shall be extended to other areas in the light of
operational experience gained. The insured farmers who experience crop
losses due to occurrence of these localised perils shall give immediate
notice to the financial institution / notified office of IA and in any
case within 48 hours along with particulars of crop insured and extent
and cause of damage. On receipt of loss intimation, IA shall depute Loss
assessors to the area for assessment of crop loss. The district Revenue
administration will assist IA in assessing the extent of crop loss.
- IA shall also develop Loss adjusters cadre and for this purpose few
Officers will be trained in Loss assessment procedures. The services of
unemployeed Agrl. graduates and retired Agrl. Department Officials may
also be utilised for loss assessment after initial training.
6). Management of the Scheme and Monitoring :
- Financial Institutions (FI) shall be required to play the same role
as in CCIS in respect of Loanee farmers. In respect of non-loanee
farmers, FI shall collect the premium and transmit it to IA along with
the Declarations within prescribed time limits. Selection of FIs would
be on the basis of Service Area approach of RBI or at the option of the
FIs (where Co-operative Banks have good network). To facilitate smooth
implementation, all non-loanee farmers shall be serviced through
individual Bank Account.
- The Department of Agriculture, Agricultural Statistics, Bureau of
Economics and Statistics, Department of Co-operation of the State
Government would be actively involved in smooth implementation of the
scheme.
- During the Crop season, agricultural situation will be closely
monitored in the implementing States / Union Territories. The State /UT
Department of Agriculture/Statistics would set up a District Level
Monitoring Committee, who will provide fortnightly reports of
Agricultural situation with details of area sown, weather situation,
pest incidence, stage of crop failure {if any} etc. to IA.
7). Procedure of Settlement of claims :
- Once the yield data is received from the State Government as per the
cut-off-dates decided, the claims will be worked out as per Declarations
received from FIs for each notified area and approval is obtained. The
funds needed for payment of claims beyond the risk sharing limits of IA
shall be provided by the Government to effect payment. The claim cheques
along with claim particulars will be released to individual Nodal
points. The FI at the grass root level in turn shall credit the accounts
of the individual farmers and display the particulars of beneficiaries
in the notice board.
- Loss assessment and modified indemnity procedures in case of
occurrence of localised perils, such as hailstorm, landslide, cyclone
and Flood where settlement of claims will be on individual basis, shall
be formulated by IA in consultation with State / UT. Govt.
Claims Approval :
- Claims shall be approved by IA. However, the Government may at their
option, scrutinize / examine a claim falling within their risk
liability.
- Disputed claims / sub-standard claims, if any will be referred to a
Committee consisting of representatives of Ministry of Agriculture
(GOI), concerned State Government and IA.
- Settlement / release of claims in the States / UTs which exceed set
risk sharing limits of IA shall be subject to receipt of funds from the
Government.
8). Publicity / Awareness and Review :
- This Scheme requires adequate publicity in all the villages of the
notified district. Besides audio-visual media, the services of
Agricultural Extension Officers of the State / UT should be utilised. It
is equally important to train people going to be involved in collection
of premium, processing of Declarations, Proposal forms etc. in banks to
avoid any confusion and misunderstanding. Training programmes and
Workshops, visit of IA Officers to the banks will help in clarifying the
doubts, redressal of grievances and clearing bottlenecks in smooth
implementation of the Scheme. Pamphlets shall be distributed to all
villages in participating States / UTs. A short film covering, the
salient features of the Scheme will be made by the IA for this purpose
- A separate action plan shall be prepared to bring in awareness and
educate farmers.
9). Role play of various Agencies :
Role & Responsibilities of Financial Institutions
(FIs) :
- For the purpose of the Scheme, the Scheduled Institutions engaged in
disbursing SAO loans as per the relevant guidelines of NABARD / RBI will
be reckoned as Financial Institutions.
- Each scheduled Commercial bank shall, with concurrence of IA fix
Nodal points which would deal with IA on behalf of branches in the
division / district / State. The Nodal Points for Commercial banks will
be minimum one level above the Branch office. The Nodal points for
Cooperative banks will be DCC Banks and those for RRBs, their Head
Office.
- Nodal points would be designated for implementation and these banks
would attend to the following functions:
- On receipt of the communication on notification of crops and areas
from the State Govt./ UT, the Nodal banks will communicate the same to
the branch offices under their control.
- The FIs would advance additional loan to Loanee farmers to meet
requirement of Insurance charges / premium as applicable up to the
extent of crop loan.
- Each such Nodal point would submit crop-wise, defined area-wise,
monthly Crop insurance Declarations to the Office of IA, in the
prescribed format, along with Insurance charges payable on all crop
loans coming under the purview of the Scheme in case of Loanee farmers
and based on Proposals received in case of other farmers.
- The Apex FIs shall issue appropriate instructions to Nodal banks as
well as crop loan disbursing branches to ensure smooth functioning of
the Scheme.
- For insurable crop loans disbursed under Kissan Credit Card (KCC),
the FIs shall maintain all controls and records as required under the
Scheme.
- Other Responsibilities of FIs will be:
- To educate the farmers on the Scheme features.
- To guide the farmers in filing the proposal forms and collecting the
required documents.
- Following the guidelines while disbursing crop loans and ensuring
proper end-use of loan disbursed.
- To prepare the consolidated statements for loanee and non-loanee
members, forwarding the same to the branch along with the premium
amount.
- Maintaining the records of proposal forms, other relevant documents,
statements for the purpose of verification by the district committee or
representative of the insurer.
Special Conditions for FIs / Nodal Banks / Loan
Disbursing Points :
- FIs will submit Crop Insurance Declarations to IA on monthly basis,
where sum insured is on the basis of amount of loan disbursed and within
one month time from cut-off date for receipt of proposals, where sum
insured is on any other basis.
- Claims received by the Nodal points, will be remitted to individual
branches/PACS with all particulars within seven days and these
branches/PACS will in turn credit the Accounts of beneficiary farmers
within seven days. The list of beneficiary farmers with claim amount
will be displayed by the branch / PACS.
- The IA will have access to all relevant records/ledgers at the Nodal
point/Branch/PACS at all times.
- The IA will be provided with all the norms / guidelines relating to
SAO crop loan disbursements as formulated by RBI / NABARD. Any
amendments / simplification of procedures / norms from time to time will
be duly made available to IA by the concerned institutions. In the
absence of such communication, IA shall be free to not take cognisance
of such modifications.
- In case a farmer is deprived of any benefit under the Scheme due to
errors / omissions / commissions of the Nodal Bank/Branch/PACS, the
concerned institutions only shall make good all such losses.
- If the farmer is adopting mixed cropping, the sum insured of a crop
should be on the basis of it’s proportionate area in the mixed cropping.
Role & Responibilities of State Government / Union
Territory Administration :
- The State Government / U.T. will notify crop wise notified areas and
premium rates as applicable (in case of commercial/horticultural crops)
well in advance of each crop season.
- The State government / UT administration would, in advance provide
to the IA, Unit Area-wise yield data of immediate past 10 years for all
crops notified under the Scheme.
- To the extent possible, the State Government / UT administration
would notify smaller defined areas for various crops, keeping in mind
that smaller areas will be more homogeneous and would be more reflective
of all crop losses, including localised perils like hailstorm, landslide
etc.
- The State Government shall issue the requisite Notification and
communicate to all participating FIs during every crop season. The
Notification of the State Government may essentially contain the
following information:
- Crops and Defined areas notified in various districts.
- Premium rates and subsidy, if and as applicable for various groups
of farmers and crops.
- The cut-off dates for collection of proposals and remittance of
premium with Crop Insurance Declarations to IA.
- The State / UT administration will release it's contribution to
Corpus Fund as per the scale and dates fixed by MOA, the Government of
India.
- The State / Union Territory administration would ensure that Crop
Estimation Surveys (CES) in general, and estimation procedures in case
of multiple picking crops in particular be strengthened in order to
furnish accurate estimates of yield. Further the State / UT
administration will assist IA in assessing the extent of crop loss of
individual insured farmers due to operation of localised perils.
- To set up various monitoring Committees as required.
- The final Yield data in the standard format for all Unit Areas for
notified crops for the crop season will be furnished to IA within the
stipulated date.
- In case, the State /UT administration fail to furnish yield data
based on requisite number of CCEs or fail to furnish yield data within
the stipulated date, responsibility of such claims, if any arising out
of such data will totally rest with State / UT administration.
- The IA will be allowed unrestricted access to records of CCEs at
grass root / District / State level.
- State Government / UT admn. shall set up District Level Monitoring
Committee (DLMC), headed by the District Magistrate. The members will be
District Agriculture Officer, DCCB, Lead Bank representative and IA. The
committee will monitor implementation of Scheme by providing fortnightly
crop condition reports and periodical reports on seasonal weather
conditions, loans disbursed, extent of area cultivated, etc. The DLMC
shall also monitor conduct of CCEs in the district.
- As the Scheme is optional to Non-loanee farmers, adequate publicity
will be provided to ensure maximum coverage of farmers through all means
available at the disposal of State / UT administration.
Role and Responsibilities of the Implementing Agency :
- Implementing Agency of the Scheme.
- The IA shall open separate Accounts to deal with Corpus Fund and
also premiums received under the Scheme.
- Building up crop yield database and preparation of Actuarial premium
rates through a Professional agency.
- Underwriting and Claims finalisation.
- Responsibility for claims to the extent mentioned in the Scheme.
- Negotiating Re-insurance arrangement in the international market.
- Co-ordination in organising training, awareness, publicity
programmes.
- Providing returns / statistics to the Government of India.
Duties of Farmers
- As the Scheme is compulsory for all Loanee farmers availing SAO
loans for notified crops, it is mandatory for all loanee farmers to
insist on coverage of all eligible loans (as per the Scheme provisions)
under the Scheme.
- If the farmer is adopting mixed cropping, the proportion of
different crops in a mixed cropping will have to be compulsorily
declared.
- In respect of Non-loanee farmers, the Proposals will be accepted
only upto stipulated cut-off date, which will be decided in consultation
with State Government / UT admn. The important duties in case of
Non-loanee farmers are as follows:
- The farmer desiring coverage should have an Account in the branch of
the designated bank.
- The farmer must approach the designated branch / PACS and submit the
proposal form in the prescribed format.
- The farmer must provide documentary evidence in regard to the
possession of cultivable land (copy of the passbook, 7/12 / land extract
or land revenue receipt should be enclosed).
- The farmer must furnish area sown confirmation certificate, if
required.
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