National Agricultural Insurance Scheme (NAIS)

The Government of India introduced the scheme from Rabi 1999-2000 season to protect the farmers against losses suffered by them due to crop failure on account of natural calamities.

The scheme is currently implemented by Agriculture Insurance Company of India (AICIL).

The scheme is available to all the farmers, loanee and non-loanee, irrespective of size of their holding.

The scheme covers all food crops (cereals, millets and pulses) and oil seeds and Annual commercial/ horticultural crops.

At present, 10% subsidy on premium is available to small & marginal farmers.

NAIS is presently being implemented in 25 States and 2 Union Territories except in States of Punjab & Arunachal Pradesh.

Nagaland has given consent to implement the scheme and Rajasthan has decided to implement WBCIS in place of NAIS.


Modified NAIS (MNAIS)—

To improve further and make the scheme easier & more farmer friendly, a Joint Group was constituted by GOI to study the existing crop insurance schemes.

Based on the recommendations of the Joint Group and view/comments of various stakeholders, a proposal on Modified National Agricultural Insurance Scheme (MNAIS) was prepared which has been approved for implementation on pilot basis in 50 districts during the remaining period of 11th Plan from Rabi 2010-11.

The salient features of MNAIS—

[a] Actuarial premium rates are charged with a provision of subsidy upto 75%, which is shared by the Central and State Governments on 50 : 50 basis;

[b] Entire liability of claims is on the implementing insurance companies;

[c] It is compulsory for loanee farmers and optional for non-loanee farmers;

[d] Risk coverage for pre-sowing/prevented sowing and post-harvest losses due to cyclone in coastal areas;

[e] On account payment up to 25% advance of likely claims as immediate relief in the areas which suffered at least 50% crop yield loss;

[f] Two higher indemnity levels of 80% & 90% instead of earlier 70%, 80% & 90%;

[g] Reduction in Unit Area of Insurance to village/ village Panchayat level; and

[h] Private insurance companies have been involved to provide the benefits of competition.