Contents
Introduction
The National Agricultural Insurance Scheme (NAIS) is a crucial initiative by the Government of India aimed at safeguarding farmers against crop losses due to unforeseen natural events. Launched in Rabi 1999-2000, NAIS provides comprehensive insurance coverage to farmers, ensuring financial stability and encouraging the adoption of modern agricultural practices.
What is the National Agricultural Insurance Scheme?
NAIS or National Agricultural Insurance Scheme is designed to provide insurance coverage and financial support to farmers in the event of crop failure due to natural calamities, pests, and diseases. The scheme covers food crops (cereals, millets, pulses), oilseeds, and annual commercial/horticultural crops like sugarcane, cotton, and potato. It operates on an area-based approach, where all farmers in a defined area are insured based on the area’s average yield.
Objectives of NAIS
- Provide financial support to farmers in the event of crop failure.
- Encourage farmers to adopt progressive farming practices and high-value inputs.
- Help stabilize farm incomes, especially during disaster years.
Eligibility Criteria
NAIS is inclusive, covering various categories of farmers:
- Loanee Farmers: Farmers who have taken Seasonal Agricultural Operations (SAO) loans from financial institutions are mandatorily covered.
- Non-Loanee Farmers: Farmers who have not taken loans can voluntarily opt for the scheme.
- Tenant Farmers and Sharecroppers: Eligible to enroll and benefit from the scheme.
Risks Covered
National Agricultural Insurance Scheme provides comprehensive risk insurance covering yield losses due to non-preventable risks, including:
- Natural fire and lightning
- Storms, hailstorms, cyclones, typhoons, tempests, hurricanes, tornadoes
- Flood, inundation, and landslide
- Drought and dry spells
- Pests and diseases
Note: Losses arising from war, nuclear risks, malicious damage, and other preventable risks are excluded.
Sum Insured and Premium Rates
- Sum Insured: Farmers can insure their crops up to the value of the threshold yield. Loanee farmers must insure at least the amount of the crop loan.
- Premium Rates:
- Kharif Season:
- Bajra and oilseeds: 3.5% of the sum insured or actuarial rate, whichever is less.
- Other crops: 2.5% of the sum insured or actuarial rate, whichever is less.
- Rabi Season:
- Wheat: 1.5% of the sum insured or actuarial rate, whichever is less.
- Other crops: 2.0% of the sum insured or actuarial rate, whichever is less.
- Annual Commercial/Horticultural Crops: Actuarial rates apply.
- Kharif Season:
Premium Subsidy
To make the scheme affordable, a 50% premium subsidy is provided to small and marginal farmers, shared equally by the central and state governments. This subsidy is subject to review and may be phased out over three to five years.
How to Enroll in National Agricultural Insurance Scheme
- Identify Notified Crops and Areas: Check with local agricultural offices or financial institutions for the list of crops and areas notified under NAIS.
- Application Submission: Submit the application form along with necessary documents to the nearest bank or designated agency.
- Premium Payment: Pay the applicable premium amount. For loanee farmers, the premium is deducted from the loan amount.
- Acknowledgment Receipt: Obtain the acknowledgment receipt for future reference.
Benefits to Farmers
- Financial Security: Provides a safety net against crop losses, ensuring farmers can recover and continue farming activities.
- Encourages Modern Practices: With assured protection, farmers are more likely to adopt high-yield and high-value crops.
- Income Stabilization: Helps maintain consistent income levels, reducing the risk of indebtedness.
- Inclusive Coverage: Caters to all farmers, including small, marginal, tenant farmers, and sharecroppers.
Why Every Eligible Farmer Should Enroll
Agriculture is inherently risky due to its dependence on weather and susceptibility to pests and diseases. NAIS offers a structured mechanism to mitigate these risks, ensuring that farmers do not face financial ruin due to factors beyond their control. By enrolling in NAIS, farmers can secure their livelihoods, invest confidently in better farming practices, and contribute to the overall growth of the agricultural sector.
Conclusion
The National Agricultural Insurance Scheme stands as a testament to the government’s commitment to protecting its farmers. By providing comprehensive insurance coverage, NAIS empowers farmers to face agricultural uncertainties with resilience. Every eligible farmer should seize this opportunity to safeguard their hard work and ensure a stable future.
For more information and to access the official guidelines, please visit the NAIS Official PDF.
