Current Affairs for Civil Services

1. Need for Comprehensive Agri
Insurance in India
Harveer Singh
Contact: 91-880-2009-420
harveersinh@gmail.com
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2. Why Insurance?
• Monsoon is Truant and Unpredictable. The
global warming and El Nino type events are
already adding to its unpredictability.
• Significant Population derives its livelihood
from Agriculture.
• Overall impact on the economy die to
worsening of rural demands.
• Farmer’s Suicides.
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3. # Agri- Insurance
• Threshold Yield: Average yield of the
preceding 7 years
• Actuarial Basis: Forecasted Loss
• Reference Weather Station
• Reference Unit Area
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4. (NAIS) or RKBY Modified NAIS (WBCIS)
1999
Covers Loanee and
Non- Loanee
Premium=1.5-3%
of Sum Assured.
Implemented at
District Level
(Widespread and
Local Calamities)
2010-11
The unit area of
insurance is village
panchayat level.
CROP YIELD
coverage of Post harvest
losses due to coastal
cyclone
Private sector insurers apart
from Agriculture Insurance
Company (AIC) of India, are
also permitted to
implement the scheme
Individual Assessment
Coverage in the event of
failure of crops due to
Adverse Weather
Incidence. (CROP LOSS)
Adverse Weather
Conditions;
Abnormality in Rainfall
, Relative Humidity,
Temperature, Wind
Speed and a mix is
covered.
It is based on area
approach. (Circle/
Taluka etc)
Predetermined SumHarveer Singh 4

5. 2013: “National Crop Insurance Programme”
launched. It has 3 components
• Modified National Agricultural insurance
Scheme (MNAIS)
• Weather Based Crop insurance Scheme
(WBCIS)
• Coconut Palm Insurance Scheme (CPIS).
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6. • MNAIS is an improvement over NAIS, and is
based on actuarial premium rates.
• This scheme is expected to generate more
benefits to farmers through coverage of
prevented sowing/planting risk and post
harvest losses, higher indemnity level of
minimum 70%, more precise calculation of
threshold yield.
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7. Harveer Singh 7

8. The Penetration
• According to Census 2011, India had 95.8
million farmers.
• But in the six farming seasons covering 2011
to 2013, only an average of 12.7 million took
crop insurance.
• That’s one in about eight farmers
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9. The Failure
• Along with the unawareness and lack of
penetration.
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10. Thank You.
•For any
feedback/query/word of
thanks, the Tutor can be
contacted at
harveersinh@gmail.com
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