Objective of the Scheme

• Providing financial support to farmers suffering crop loss/damage arising out of unforeseen events.
• Stabilizing the income of farmers to ensure their continuance in farming.
• Encouraging farmers to adopt innovative and modern agricultural practices.
• Ensuring credit worthiness of the farmers, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting the farmers from production risks

Eligibility for scheme

• All farmers including sharecroppers and tenant farmers growing the notified crops in the notified areas are eligible for coverage.
• The scheme is optional for all farmers including farmers who have been sanctioned short-term Seasonal Agricultural Operations (SAO) loans/Kisan Credit Card (KCC) for the notified crops from defined FIs (hereinafter referred to as Loanee farmers). Existing Loanee farmers who do not want to get covered under the scheme have the option of opting-out from the Schemes by submitting requisite declaration to loan sanctioning bank branches any time during the year but at least seven days prior to the cut-off date for enrolment of farmers for the respective season
• Only those farmers whose data is uploaded on the NCIP and their share of premium has been remitted to the concerned IC within the prescribed time limit, shall be eligible for Insurance coverage

Risk Covered

• Prevented Sowing/Planting/Germination Risk: Insured area is prevented from sowing/planting/germination due to deficit rainfall or adverse seasonal/climatic conditions.
• Mid-Season Adversity: Loss in case of adverse seasonal conditions during the crop season viz. floods, prolonged dry spells and severe drought etc., wherein expected yield during the season is likely to be less than 50% of the normal yield. This add-on coverage facilitates the provision for immediate relief to insured farmers in case of occurrence of such risks.
• Localized Calamities: Loss/damage to notified insured crops resulting from occurrence of identified localized risks of hailstorm, landslide, inundation, cloud burst and natural fire due to lightening affecting isolated farms in the notified area
• Post-Harvest Losses: Coverage is available only up to a maximum period of two weeks from harvesting, for those crops which are required to be dried in cut and spread / small bundled condition depending on requirement of the crops in that area, in the field after harvesting against specific perils of hailstorm, cyclone, cyclonic rains and unseasonal rains
• Basic Cover: The basic cover under the scheme covers the risk of loss of yield to standing crop (sowing to harvesting). This comprehensive risk insurance is provided to cover yield losses on an area-based approach basis due to non-preventable risks like drought, dry spells, flood, inundation, wide spread pest and disease attack, landslides, natural fire due to lightening, storm, hailstorm, and cyclone.

Coverage of Crops

• Food crops (Cereals, Millets and Pulses).
• Oilseeds.
• Annual Commercial / Annual Horticultural crops.
• In addition, pilots for coverage can be taken for those perennial horticultural/commercial crops for which standard methodology for yield estimation is available.