NATIONAL AGRICULTURAL INSURANCE SCHEME (NAIS) :

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 natural calamities, pests and diseases. Agriculture Insurance Company of India (AIC) Ltd. is the Implementing Agency of the Scheme. The scheme is available to all the farmers – loanee and non-loanee both – irrespective of their size of holding. It envisages coverage of all the food crops (cereals, millets and pulses), oilseeds and annual commercial/horticultural crops, in respect of which past yield data is available for adequate number of years.

The premium rates are 3.5% per cent (of sum insured) for bajra and oilseeds, 2.5% for other Kharif crops; 1.5% for wheat and 2% for other Rabi crops. In the case of commercial/horticultural crops, actuarial rates are being charged. At present small and marginal farmers are entitle to subsidy of 10% of the premium charged from them which is shared equally by Centre and State Governments.

The scheme is operating on the basis of ‘Area Approach’ i.e. defined areas for each notified crops – block, tehsil, mandal, firka, circle, gram panchayat etc. Presently the scheme is implemented by 24 States and 2 Union Territories. During the last twenty five crop seasons (i.e. from Rabi 1999-2000 to Rabi 2011- 12), 1930 lakh farmers have been covered over an area of about 2919 lakh hectares insuring a sum amounting to about Rs 256065 crore under the scheme. Claims to the tune of about `25001 crore have been paid/payable against the premium of about `7565 crore benefiting about 518 lakh farmers (upto Rabi 2011-12 season).