Modified National Agricultural Insurance Scheme (MNAIS) approved

Keeping in view the various risks involved in agriculture production, the Ministry of Agriculture has been implementing the National Agricultural Insurance Scheme (NAIS) as a Central Sector Scheme since Rabi season 1999-2000 to insure the farming community against these risks. It was reviewed based on the experience gained from its implementation, in which many deficiencies in the scheme were identified.

The approved scheme has the following features:

(i) Actuarial premiums will be paid for insuring the crops, hence the claims liability would be on the insurer;

(ii) The unit area of insurance for major crops is village panchayat;

(iii) Indemnity amount shall be payable for prevented sowing/planting risk and for post harvest losses due to cyclone;

(iv) On account payment up to 25% of likely claims would be released as advance for providing immediate relief to farmers;

(v) Uniform seasonality discipline for loanee and non-loanee farmers;

(vi) More proficient basis for calculation of threshold yield and minimum indemnity level of 70% instead of 60%;

(vii) Modified NAIS with improved features will have two components i.e. compulsory and voluntary. Loanee farmers will be insured under ‘compulsory category’ while non-loanee farmers will be insured under ‘voluntary category’;

(viii) Private sector insurers with adequate infrastructure and experience would also be allowed in the implementation of MNAIS.