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-fro/No. 13011/15199-Credit-llc=rR ~WJI~~41_ "~"

- -Telegram AGRINDIA "Ai'

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~ ~()/Fax No.

3382011,338891131-65054AGRIIN

"ffRTI tl '< <t> I'<GOVERNMENT OF INDIA

CJI~ ~~MINISTRY OFAGRICULTURE'

Cf>~ -qcf \9t5Cf>IRdl ~

DEPARTMENT ~ AGRIULTURE & COOPERATION~~ 11CR, \SL ~~ lJ~ ~ ~ ~--110 001

( . .

KRISHI SHAWAN, DR RAJENDRA PRASAD ROAD, NEW DELHI-110 001

~/Date : 16-7-99

To.The Chief SecretaryGovt. of ' -(Ail States/UTs) .-

Subject: Implementation of National Agricultural Insurance Scheme- (Rashtriya Krishi Bima Yojana) in the country - AdministrativeInstructions reg.

Sir

The proposal for revising the existing Comprehensive Crop Insurance Scheme (CCIS)in order to enlarge its coverage in terms of farmers, crops and risks has been under consideration ofthe Central Government for some time. Representations have been received: from the StateGovernments, farming community and others concerned from to time with suggestions for inclusionof non-Ioanee farmers, more crops, reduction in the unit area under crop insurance etc.

,2. The matter has been considered by the Government in detail and it has peen decided to launch a newScheme entitled National Agricultural Insurance Scheme (Rashtriya Krishi Bima Yojana 'RKBY')from the forthcoming Rabi 1999-2000 season. Under the new scheme, comprehensive riskinsurance will be provided to cover yield losses arising due to non-preventable risks viz :

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Nat0raLF!re and Lightning;

ii) Stor,lll; Hajlstrolll,Cyclonei Typhoon.Tempest, Hurncane, Tornado etc.:. ,.,,' :. . ..... - . .

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ill) Flood.Inundation and landslide; .

lv). Drouqht.Dry Spells;

.v)'. Pest/Olseasesetc.

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Losses ari:singout. of war & nuclear risks, malicious damage arid otherpreventable risks shall be.excluded··'··'

3. The new scheme will be available to all the farmers (both loa nee and rion-Ioanee), irrespective of the Isize of their holding, The scheme envisages coverage of all crcips including cereals, pulses arid .. 1

1oilseeds, which are already being covered under the existing COmprehensive Crop Insurance ,Scheme (¢CIS). Three cash crops i.e. sugarcane, potato and cotton, will be covered in the. first year.of the operation of the Scheme. A" other annual hortlculturaland commercial crops will be placedunder insurance cover within the next three years subject to the availability of past yield data. Th~premium rates will be 3,5.per cent for bajraand oilseeds, and 2,5 per sent for otherkharifcrops.rlfper cent for wheat, and 2 per cent for other rabi crops. In caseactuarial rates are less than theprescribed flat premium rates,the lower rate will be applicable, In the case of commercial and,horticultural crops, a~tuarial rates will be charged. 50% subsidy in premium is allowed in respect ofsmall and marginal farmers to be shared equally by the Govt. of lndla and State/UT Govt. Thepremium subsidy will be phased out over a period of 5 years, .

4. Under the scheme, the sum-insurd/limit of coverage may extended to the value of.the threshold yieldof the insJred crop at the option of insured farmers. However, a farmer may also insure his cropbeyond the value otthresnold yield level upto 150% of the average yield of the ~otified area onpayment of premium at commercial rates.

5. The Scheme would operate on the basis of 'Area Approach; for widespread calamitiesand on anindividual basis for localisedcalamitiessuch as hailstorm; landside; cyclone and flood. The definedarea (l.e.unft area of insurance) may be Gram Panchayat, Mandat, Hobl], Circle, Phirka, Block,Taluka etci to be decided' by the.State/U'T Govt.HoWever, each participating State/UT Govt. will berequired to reach the level of GramPanchayat as the unit of insurance in a period of three years ..Individual based assessment in case of localised calamities 'Nould be implemented in limited areason experimental basis initially and shall be extended in the light ofoperationat experience gained,

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6. . It has also been decided that to meet catastrophic losses, aCorpusFund.shall be created withcontributions from the Government of India and StatelUr on 5G:50 basis ..

7 A copy each of the Scheme and the Operational MCidalitiesfor its implementation are annexed.

(ii)

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The Government have also decided to setup an exclusiveorqanisation for implementation bfRKBYin due course. Until such time as the new set up is created, the General Insurance Corporation ofIndia(GIC)will continue to function as the Impleni'entingAgency (~A).

9. All the State Govt./UTsare requested to take immediateactior1 for adopting and implementing thenew Scheme from Rubi 1999-2000 season. They are also advised to make' necessary budgetaryprovision for meeting their liability on account ofpremium subsidy, claims etc. '

10.' The operation of the scheme has to be monitored closely. For smooth implementation of the scheme,theStates/UTs are requested to initiate required steps urgently and issue appropriate instructions tothe Departments/agencies concerned at the State level. They are also requested to give widepubllclty to the new Scheme so thatthe farming community is apprised of the benefits of the scheme.

11. The receipt of this letter may I<indly be acknowledged and action taken by the State Govt./UT mayplease be intimated to this Department urgently.

(Hindi version Will follow)

Yours faithfully,

~(GOVINDAN NAIR)

Joint Secretary to the Govt. Of India

Copy to : Shri D.O. Rasqotra, General Manager, GIC of India,L-41, 1st Floor, Connaught Circus, New Delhi

. r;;!,"r!-(S.D. CHOPRA)

Deputy Commissioner (Credit)

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/4:/-' .: y~ . l\ic! .301-1/04/2004-Credit III~E'-0.\ r--'"--~0- \. C;overnment of Indiahi . J. f-~ \ 'Vl- ist f Aori It

';- sr;O 'f\i) 'l~"~~ .~\ I irus ry a qncu ure .~ ::'\\~\«O,If/ Department of Agriculture & Cooperation

v' <;""'~'I""''\' ,~~~~ Krishi Elhavan, New Delhi

~~ f<tt'0B' * e--- Dated the 11 tn August, 2010

1. The Secretary (Agriculture/Cooperation)/APC),Government of .. . " ,.,

2. Ministry of Finance, Deptt. of Financial Servieces, Insurance & BankingDivisions.

3. 6'£, RBI, NABARD, NSSO, IASRI.

Subject: - Administrative Approval for implementation of National AgriculturalInsurance Scheme (NAIS) on existing pattern during Rabi 20'10-11 -reg.

Sir,

I am directed to refer to the Department of Agriculture & Cooperation'sletter of even number dated March 8, 2010 regarding administrative approval forimplementation of National Agricultural Insurance Scheme (NAIS) during Kharif2010 and to convey administrative approval of Government of India forcontinuation of scheme during Rabi 2010-11 on following terms and conditions :-

.:. Premium subsidy to small and marginal farmer's to extent of 10% to beshared equally between the Central and concerned State Government.

~:~ Adrninistrative and Operational expenses to extent of :20%) to be sharedequally between Central and State Governments

.:. Total publicity and bank service charges to be shared equally by Centraland State Governments,

.:~ Risk of lmplernentinq Agency III meeting claims would be restricted to100% of the premium in case of food and oilseeds crops and '150% forannual commercial/ horticultural crops.

~:o The existing premium rates i.e flat rates for food and oilseeds crops andactuarial premium for annual commercial and horticultural crops, will becontmued

~:., Asprovidecl in the scheme, indemnity claims will be settled only on basisof yield data furnished by State Government based on requisite number ofCrop Cutting Experiments (CCEs) conducted under' General CropEstimation Survey (GeES) and not or arty other basis like Annavari/Paisawari etc

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2. All State Governments/Union Territories, who wish to participate in thescheme, are requested totake appropriate action for implementation of SCll81l1e .during Rabi 2010-'1-1 strictly in accordance with guidelines Circulated by thisDepartment. Element of sharing of risk, nature of coverage, seasonalitydiscipline, submission of declarations by lending agencies etc will remain samei.e as per provisions of tile scheme. AH State Governments and UnionTerritories are accordingly requested to make necessary arrangements for.implementation of Scheme with required budgetary provisions State'Governments/UTs are also requested to issue appropriate instructions toconcerned Departments/agencies, for effective implementation of the scheme.

3. The Government is consiciering to implement the Modified NAIS onpilot basis in 50 districts from Rabi 2010-11 season for which approval is stillawaited. State Governments have already been requested vide d.o. letter No.'130'11/2/2008-Credit II dated ih & 29th July, 201 0 to identify 5 districts for pilotModified NAIS. The same may also be taken in to consideration While notifyingthe Nj\IS for Rabi 2010-11 season.

Yours faithfully,'

Copy to : US (Fin.-III)/AD(Budget).

COPV also to :-.Sr. PPSto Secretary (A&C)/PPS to AS (GCP)/JS (C&C).- .

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