Agriculture ministry to spend Rs 250 cr more on farm cover
The agriculture ministry is likely to spend an additional Rs 250 crore in 2007-08 on farm insurance, over and above the average Rs 650 crore spent on the National Agricultural Insurance Scheme (NAIS).
By Prabha Jagannathan, TNN |
NEW DELHI: The agriculture ministry is likely to spend an additional Rs 250 crore in 2007-08 on farm insurance, over and above the average Rs 650 crore spent on the National Agricultural Insurance Scheme (NAIS).
Finishing touches have been given to a modified NAIS. The scheme, approved by the finance ministry, is expected to be implemented in 100 pilot districts, based primarily on the suggestions made by a joint expert group.
It is likely to be implemented in mainly dry land and drought-prone districts susceptible to farm suicides. Once its performance is evaluated and found efficient, the government plans to extend it to other non-drought-prone districts.
Panchayats will be the units of assessment under the new scheme and the insurance premium to be paid by subscriber farmers affected by natural calamities is likely to be lower than that for the NAIS, sources said. It is also expected to settle claims far speedier than with the NAIS which is being implemented by the Agricultural Insurance of India (AIC). Claims will be settled before the next sowing season for farmers.
The NAIS suffered from many flaws which the farm ministry now hopes to avoid with the MNAIS. Several states delayed on payment of their share of financial liabilities under the NAIS and failed to make available requisite yield data to the implementing agency within a stipulated time to ensure speedy processing of admissible claims.
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As if that weren’t enough, between 1999-2000 and kharif 2004, the NAIS earned a total premium of only Rs 1,687.4 crore as compared to claims of Rs 5,328.2 crore. The total sum insured was Rs 52,936.3 crore. The scheme covered 5.9 crore farmers countrywide. The highest payout in terms of claims were in the first year of kharif 2000, at Rs 1,222.5 crore.prabha.jagannathan@timesgroup.com
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