Agriculture Insurance
Company of India Ltd. is expected to become operational from January,
2003. The Company is being promoted by General Insurance Corporation
of India (GIC), National Bank for Agriculture and Rural Development
and four Public Sector General Insurance companies.
This was stated in
Rajya Sabha today by the Minister of State for Agriculture Shri
Hukumdeo Narayan Yadav in a written reply to Shri Prem Chand Gupta.
It was stated that some shortcomings such as inadequate coverage
for farmers, crop, risk commitments, large unit area of insurance
etc. were noticed in erstwhile Comprehensive Crop Insurance Scheme
(CCIS). To overcome these shortcomings and on the demands of the
States/Union Territories, the Government introduced National Agricultural
Insurance Scheme (NAIS) from Rabi 1999-2000 season.
During the course
of implementation of NAIS for 3 years, some suggestions like limiting
the sum insured up to Rs. 50,000/-, retaining 50% premia subsidy
to small and marginal farmers, rationalization of premia structure,
coverage of perennial crops etc. were received from the implementing
States/UTs. In view of the suggestions given by the states and
provision in the scheme for its review, a process for the review
of NAIS has been initiated. A proposal for the review of NAIS
has been prepared and submitted to the Ministry of Finance, for
the consideration of Expenditure Finance Committee (EFC).
The proposed modified
scheme would cover more crops (perennial crops) and provide for
smaller unit area of insurance. Small and marginal farmers will
continue to avail 50% premia-subsidy etc. At the same time, financial
liability of the Government may be reduced because of further
rationalization of premium structure and limiting the sum insured
up to Rs. 50,000/-.
