What is agricultural insurance scheme?
National Agricultural Insurance Scheme (NAIS) is the Government sponsored crop insurance scheme under implementation in the country since Rabi 1999-2000 season as part of risk management in agriculture with the objective of providing financial support to the farmers in the event of failure of crops as a result of …
What are the types of agricultural insurance?
Generally speaking, there are three broad classes of agricultural insurance: Animal agricultural insurance, Crop agricultural insurance and Farm property and equipment agricultural insurance.
What is Modified National Agricultural Insurance Scheme?
In 2015-16, the Modified National Agriculture Insurance Scheme is functioning as a component of National Crop Insurance Programme (NCIP). This scheme provides insurance coverage and financial support to the farmers in the event of failure of crops and subsequent low crop yield.
Why agriculture insurance is important?
The advantages of crop insurance are, (i) Stability in Income: It protects the farmers against losses caused by crop failure. It acts like a tool that allows farmers to manage their yield and price risks. Therefore, one of the most important benefit of buying agriculture insurance is that farmers get peace of mind.
What is National Agriculture Income Scheme?
National Agricultural Insurance Scheme (NAIS) was introduced by the Government of India to provide insurance coverage and financial subsidy to the farmers in the event of crop losses suffered on account of natural calamities, pests and diseases.
Which ministry covers the agriculture insurance scheme?
Ministry of Agriculture
The scheme is compulsory for loanee farmers availing Crop Loan /KCC account for notified crops and voluntary for other others. The scheme is being administered by Ministry of Agriculture.
What are the objective of national agricultural insurance scheme?
The broad objective of the Nigeria Agricultural Insurance Scheme (NAIS) is to offer protection to the farmer from the effects of natural disasters and to ensure payment of appropriate compensation sufficient to keep the farmer in business after suffering a loss.
How do you get agricultural insurance?
Coverage is voluntary for non-loanee farmers. Contact District Agriculture officers of State Govt./nearest branch of bank/PACS or crop insurance company operating in your area for availing the benefits under the Crop Insurance Scheme.
When was national agricultural insurance scheme started?
The present crop insurance scheme, i.e., National Agricultural Insurance Scheme (NAIS), launched by the Hon’ble Prime Minister on 22nd June 1999 replaced the CCIS from Rabi 1999-2000 season.
When was crop insurance introduced India?
1st April 1985
Based on the learnings from PCIS, the Comprehensive Crop Insurance Scheme (CCIS) was introduced with effect from 1st April 1985 by the Government of India with the active participation of State Governments. The Scheme was optional for the State Governments.
What are the different principles of insurance?
In the insurance world there are six basic principles that must be met, ie insurable interest, Utmost good faith, proximate cause, indemnity, subrogation and contribution.
What is the meaning of crop insurance?
Crop insurance is purchased by agricultural producers, and subsidized by the federal government, to protect against either the loss of their crops due to natural disasters, such as hail, drought, and floods, or the loss of revenue due to declines in the prices of agricultural commodities.
Which is the main component of agricultural insurance in India?
Agricultural insurance is also called Crop insurance. Crop insurance is the main component of the agriculture sector, especially in a country such as India, where the majority of farmers are small and marginal with low savings that reduce their capability to weather agricultural risks.
What makes agricultural insurance a class of business?
Agricultural insurance is a class of business of its own whose specific features are as follows: The localization of crops stands as an impediment to risk spreading. The accumulation of the same crops in close geographical areas would expose risks to the same hazards.
Which is the weather based crop insurance scheme?
Weather-based Crop Insurance Scheme (WBCIS) is a unique Weather-based Insurance Product designed to give insurance protection against losses in crop yield resulting from adverse weather incidences.
Why do farmers need crop insurance in India?
Agricultural insurance in India is by which farmers can stabilize farm income and investment against the disastrous result of losses due to natural hazards or low market prices. Crop insurance not only stabilizes the farm income but also helps the farmers to start production after a bad agricultural year.