Press Information Bureau
Government of India
Ministry of Agriculture & Farmers Welfare
23-November-2010 15:43 IST
3 Levels of Indemnity for Crops Insured under NAIS
The Government has adopted three levels of indemnity for crops insured under the National Agricultural Insurance Scheme (NAIS). These levels are 90%, 80% and 60% corresponding to low risk, medium risk and high risk areas, for all the corps based on Coefficient of Variation, which reflects the variability in the yield data of past 10 years of a crop in a notified area.

During the course of implementation of the scheme some implementing States/UTs including Karnataka have suggested for improvement in the levels of indemnity at 80 & 90 per cent under the scheme.

Keeping in view the recommendations of the Joint Group constituted by the Government to study the improvements required in the existing crop insurance schemes and views/comments received from various stakeholders, proposal of Modified NAIS has been approved by the Government for implementation on pilot basis in 50 districts from Rabi 2010-11. Modified NAIS envisages more efficient basis for calculation of threshold yield; and minimum indemnity level has been raised from 60% to 70%.

This information was given by Prof. K.V. Thomas, Minister of State for Agriculture, Consumer Affairs, Food and Public Distribution in written reply to a question in the Lok Sabha today.

MP: CP: levels 3 (23.11.2010)