The new crop insurance scheme (NCIS) was approved by Union Cabinet on Wednesday. The government has proposed to implement the scheme from Kharif season starting June 2016.
The new scheme might replace other insurance schemes already in place such as National Agricultural Insurance Scheme (NIAS) and Modified National Agricultural Insurance Scheme (MNIAS) as proposed by the government.
The new scheme will reduce the premium and ensure early settlement of the claim. The government wants to provide protection to 50 percent farmers under the scheme within the next 2-3 years. The crop insurance schemes that are currently in place cover only 23 percent.
Under the new scheme, the farmers will be required to pay a maximum premium of 2 percent of the sum assured for food crops and oilseeds and up to 5 percent of the sum insured for cotton and horticultural crops. This will be a big relief for farmers who are currently required to pay crop insurance premiums as high as 25 percent.
The government wants to boost agriculture production and provide protection to farmers in the wake of crop failures due to erratic rains and other factors. According to Met department, 18 states out of 29 in 2015 faced rainfall crunch.