This document summarizes different crop insurance schemes implemented in India over time, including their objectives, features, and limitations. It discusses early schemes from the 1970s that covered only a few states and crops. It then outlines broader national schemes from the 1980s onward like the Comprehensive Crop Insurance Scheme and National Agricultural Insurance Scheme, which expanded coverage to more farmers, crops, and regions. The document also briefly introduces some newer state-level schemes focused on specific crops or weather-based insurance.

2. • PRESENTED BY: AZAR SHAIKH
99
 ARJUN SHARMA
101
 VIKRAM SHEDGE
102
 JANHAVI SHINDE
103
 VIKRAM SHINDE
104
 VAISHALI SHIRSAT
106
 DURGESH SHIVADE 107
 JAYPAL SIRSAT
108
 MAHESH SOLASE
109

3. • Definition:Crop insurance refers to an insurance which
insures farmers and crop producers against the
their loss of crops due to natural disasters, such
as hail drought, and floods.

4. • Yield risk:•
•
•
•
Weather
Pest & disease
Fire
Inputs quality
• price risk :• Influenced by demand & supply factors

5. •
•
•
•
To stabilize farm income & investment.
To guard against disastrous effect of crop losses.
Helps to farmers to initiate production activity.
Farmers can grow more profitable crops under
certain risks.
• farmers can adopt improved technologies for
increasing crop production.
• condition of farmers becomes unstable due to
natural calamities & price fluctuation.

7. First Individual Approach
Scheme
• introduced in 1972-73 by general insurance
corporation (GIC)
• crop covered:• Initially only cotton H-4
• later ground nut, Wheat, Potato
• States covered:•
Andra
pradesh, Gujrat, Karnataka, Maharashtr
a, Tamilnadu, West Bengal.
• Farmers covered- 3110
• premium – 4.54 lakh
• Claims – 37.88 lakh

8. • Launched by GIC in 1984
• V. M. dandekar suggested suitable approach to
be followed in the schemes.
• It provides insurance cover against a decline
in crop yield below threshold level.
• Based on “Area approach”
• Crops covered:- Cereals, Millets, Oilseeds,
Cotton, Potato & Chickpea.

9. Contd.
• only to loanee farmers on voluntory basis
• States covered :- 12 states covered such as
Andra pradesh, Maharashtra, Gujrat, etc.
• farmers covered:- 6.23 lakh
• premium collected:- 195.01 lakh
• claims paid:- 155.68 lakh
• claim ratio:- 79.83%
• premium paid was shared between GIC &
state govt. in ratio of 2:1

10. Contd.
Lacking of scheme:
Small & marginal farmers couldnot
participate because farmers have poor access
to institutional credit.

Unit of insurance was very large

Lack of awareness among farmers

Major commercial crops like Cotton
& sugarcane excluded.

11. Comprehensive Crop Insurance
Scheme (CCIS)
• this scheme implmented in 1985-1999
• This scheme linked to short term credit
• Implemented based on homogenous area
approach.
• CCIS was confined only to farmers who borrowed
seasonal agril. Loan
• CCIS was compulsory for loanee farmers.
• Till kharif 1999, scheme adopted in 15 states & 2
UT’s

12. Contd.
• Salient features:– it covers farmers availing crop loans from financial
institutions, for growing food crops & oilseeds.
– the coverage was restricted to 100% of crop loan
subject to maximum of rs. 10000 per farmers
– Premium rates:- 2% for cereals 7 millets
1% for pulses &oilseeds
Farmers shares of premium was collected at the
time of disbursement of loan

13. Contd.
• Burden of Premium and Claims was shared by
Central and State Governments in a 2:1 ratio.
• Farmers covered:- 763lakh
• Premium collected-404 crores
• claims paid-2303crores.
• CCIS were highly skewed towards Gujrat about
(58%) to groundnut farmers.
• Subsidy to small & marginal farmers 50% of
premium

14. Lackings of the CCIS
• The scheme covers only loanee farmers, leaving
non-loanee farmers who are in majority.
• Covers only food crops, oilseeds and pulses and
other crops are left out.
• Sum insured was maximum to Rs 10,000
• High claims ratio because of low, flat premium
rates.

15. Experimental Crop Insurance
Scheme(ECIS)
• This scheme introduced in Rabi 1997-98
• Covers small & marginal farmers those who
not borrow from institutional institutes
• Implemented in 14 districts of 5 states
• 100% subsidy provided on premium
• Premium & claims were shared by central &
state govt. in 4:1 ratio

16. Contd.
• Farmers covered- 4.78 lakh for sum insured
172 crore
• Claims paid- 39.78 crore
• Premium collected- 2.86 crore
• This scheme discontinued after one season

17. • Scheme introduced from rabi season of 1999-2000
• Scheme for both loanees & non-loanees farmers
• Scheme operating on both “Area approach” & “Individual
approach”
• Crops covered:- Food grains, Oilseeds, annual horticulture/
commercial crops.
• Premium rates:•
•
•
•
•
Bajara & oilseeds - 3.5%
Kharif crops
-2.5%
Wheat
- 1.5%
Other rabi crop
-2.0%
In case of horticultural/ commercial
crops, actuarial rates are being charged.

18. Contd.
• Small and marginal farmers are entitled to a subsidy of 50
per cent of the premium charged from them, which will
be shared 50:50 by the central and state governments.
• As against a limit of sum insured Rs 10,000 , sum insured
can be as high as 150 percent of average yield.
• The premium subsidy will be phased out over a period of
five years.
• NAIS is a multi agency scheme.
• Central Govt, State Govt, Financial Institution and GIC
will play their roles in implementation.

19. Contd.
• Coverage of NAIS:» Initially introduced in 9 states & UT’s covered
5.8 lakh farmers & 7.8 Lakh ha. Cropped area
» Upto 2006-07, scheme covers 21 states & UT’s
» Total farmers covered- 970.8 lakhs
» Total sum assured- 97183 crore
» Total premiums collected- 2944 crore
» Total claims paid- 9857 crore

20. • This scheme introduced by govt. of India a central
sector scheme as PSSCI in 1999-2000.
• This is the first scheme which provides security to seed
growers
• This scheme covers the Breeders Seed and Certified
seed of all major crops in 10 states
• It covers
Wheat, Paddy, Maize, Bajari, Jowar, Gram, Red
gram, Groundnut, Soybean, Sunflower and Cotton
• PSSCI covers the seed crop at field stage, arising out
of failure, rejection of seed crop, loss in expected raw
seed , loss of seed crop after the harvest

21. Contd.
• Covers loss in germination
• Loss in certification stage.
• Also covers non preventable risk like
flood, drought, cyclone etc.
• The sum insured is equivalent to 3 or 5 years average seed
yield multiplied by procurement price/sale price of seed
crop.
• premium rates:» 2.0% for Ground nut and Wheat
» 2.5% for Sunflower
» 3.0% for paddy
» 3.5% for Jowar
» 5.0% for
Gram, Redgram, Bajara, Maize, Soybean &
cotton

22. • This scheme introduced in Rabi 2003-04
• Scheme implemented in 21 districts of 13 states.
• A farmers production and price risk for the crop
produced by him, would be protected by ensuring
minimum guaranteed income.
• Initially the programme cover paddy and wheat only.
• A premium subsidy of 75% is proposed to be given in
case of small and marginal farmers and 50% for other
farmers.
• Upto 2004 total farmers covered under this scheme
were 27329.

23. • This scheme introduced in kharif 2007
• This scheme covers risk of weather related issues like
rainfall, frost, heat, humidity, etc.
• WBCIS is built upon the weather conditions affect crop
production even when cultivar has taken all the care to
ensure good harvest.
• This scheme run by different private institutions in
different states
• It covers small & marginal farmers
• This scheme compulsory for loanee farmers &
voluntary for non-loanee farmers

24. Contd.
• Crops covered:-millets, pulses, oilseeds &
horticultural crops.
• States covered- Bihar, Chhattisgarh, Haryana,
M.P, Punjab, Rajsthan & U.P.
• Premium rates:• Wheat- 1.5%
• Other crops- 2.0%
• Horticultural crops- Actuarial rates

25. • The market for crop insurance in developing is
vast as acerage under cultivation.
• Crop insurance will vary from country to
country depending upon national priorities &
the objectives set & the limitations imposed
under crop insurance scheme.