Friday September 17, 03:28 AM Source: Indian ExpressFinance
Cabinet opens the door for pvt players in crop insurance
By fe Bureau
After a decade of launching the National Agricultural Insurance Scheme (NAIS) which protects farmers against losses incurred due to crop failure on account of natural calamities, the government on Thursday decided to modify it by introducing several key provisions which will facilitate private sector participation in scheme.
Presently, NAIS is implemented by Agriculture Insurance Company of India where state-owned General Insurance Company of India and Nabard has 35% and 30% stake, respectively. The Cabinet Committee on Economic Affairs (CCEA) approved the Modified National Agricultural Insurance Scheme (MNAIS) to be introduced during rabi season of 2010-11 on pilot basis in 50 districts. The CCEA has also approved budgetary provisions of Rs 358 crore for the modified insurance scheme which would in operation during 2010-11 and 2011-12.
"With the introduction of the modified scheme, it is expected that an increased number of farmers will be able to manage risk in agriculture production in a better way and will succeed in stabilising farm income particularly at the times of crop failure on account of natural calamities," a government statement said.
The modified scheme envisage payment up to 25% of likely claims would be released as advance for providing immediate relief to farmers and private sector insurers with adequate infrastructure and experience would also be allowed in the implementation.
According to the ministry of finance data, since the scheme's inception during 1999-2000, more 134.7 million farmers have been insured, covering an area of 211 million hectare for a sum insured value of is Rs 1,48,250 crore, against a premium payment of of Rs 4,426 crore.
Meanwhile, the Cabinet also approved the introduction of the Multi-State Co-operative Societies (Amendment) Bill, 2010 in the Parliament. These amendments aimed at enhancing the public faith in the cooperatives and to ensure better accountability of the management towards its members and the law of the land.
