1. Introduction
  2. NAIS
  3. Evolution of NAIS
  4. Objectives
  5. Salient options of the scheme


India is an associated with rural country, wherever the bulk of the population depends on agriculture for his or her keep. Yet, crop production in the Republic of India relies mostly on the weather and is severely compact by its vagaries as additionally by the attack of pests and diseases. These unpredictable and uncontrollable extraneous perils render Indian agriculture a very risky enterprise. It’s here that crop insurance plays a crucial role in anchoring a stable growth of the arena.


National Agricultural Insurance theme (NAIS) was introduced by the govt. of the Republic of India to supply an amount of money and a monetary grant to the farmers. Moreover, as a neighbourhood of risk management in agriculture with the intention of providing support to the farmers in the event of failure of crops as a result of natural calamities, pests, and diseases.

Evolution of NAIS

The Government of the Republic of India experimented with a comprehensive crop insurance theme that failing. The government then introduced in 1999-2000, a brand new theme titled “National Agricultural Insurance Scheme” (NAIS) or “Rashtriya Krishi Bima Yojana” (RKBY). NAIS envisages coverage of all food crops (cereals and pulses), oilseeds, husbandry, and industrial crops. It covers all farmers, each loan and non-loan, underneath the theme.

The premium rates vary from 1.5 % to 3.5 % of add assured for food crops. Within the case of husbandry and industrial crops, calculator rates area unit charged. Tiny and marginal farmers area unit entitled to a grant of 50 % of the premium charged- the grant is shared equally between the govt. of Republic of India and also the States. The grant is to be phased out over an amount of five years.

NAIS operates on an Individual basis of space approach for localized calamities like hailstorms, landslides, cyclones, and floods. Underneath the theme, every state is needed to succeed in the extent Gram council because of the unit of insurance in an exceedingly most amount of three years. Agriculture Insurance Corporation of the Republic of India is implementing the theme.


The objectives of the NAIS area unit as underneath

  • To offer the amount of money and support to the farmers in the event of failure of any of the notified crops as a result of natural calamities, pests & diseases. 
  • To encourage the farmers to adopt progressive farming practices, high price in-puts, and better technology in Agriculture. 
  • To facilitate stabilize farm incomes, significantly in disaster years.

Salient options of the scheme

Crops covered: The Crops within the following broad teams in respect of that 

i) The past yield knowledge supported Crop Cutting Experiments (CCEs) is on the market for an adequate variety of years, and

ii) Requisite variety of CCEs area unit conducted for estimating the yield throughout the projected season:

a. Food crops (Cereals, Millets & Pulses)

b. Oilseeds

c. Sugarcane, Cotton & Potato (Annual industrial/annual husbandry crops)

States and areas to be covered: The theme extends to all or any States and Union Territories. The States / UTs choosing the

The scheme would be needed to require up all the crops known for coverage in an exceedingly given year.
Exit clause: The States / Union Territories once choosing the theme, can need to continue for a minimum amount of 3 years.

Farmers to Be Coated: All farmers together with sharecroppers, tenant farmers growing the notified crops within the notified area units are eligible for coverage. The theme covers the following teams of farmers:

  • On an obligatory basis: All farmers growing notified crops and availing seasonal Agricultural Operations (SAO) loans from monetary establishments i.e. Loan Farmers.
  • On a voluntary basis: All alternative farmers growing notified crops (i.e., Non-Loan farmers) who take the theme. 

Risks Coated & Exclusions: Comprehensive risk insurance is going to be provided to hide yield losses because of non-preventable risks, viz.:

  • Natural hearth and Lightning
  • Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, etc.
  • Flood, Inundation and Landslide
  • Drought, Dry spells
  • Pests/ Diseases etc.

Losses arising out of war & nuclear risks, malicious injury & alternative preventable risks shall be excluded.

Sum insured / limit of coverage: The add Insured (SI) might reach the worth of the edge yield of the insured crop at the choice of the insured farmers. However, a farmer might also insure his crop on the far side price of threshold yield level up to a hundred and fiftieth of the average yield of notified space on payment of premium at industrial rates. Just in the case of Loanee farmers the add Insured would be a minimum of capable the quantity of crop loan advanced. Further, just in the case of Loanee farmers, the Insurance Charges shall be associate with additionally to the dimensions of Finance for the aim of getting a loan.

Premium Subsidy: 50% grant in premium is allowed in respect of tiny & Marginal farmers, to be shared equally by the govt. of Republic of India and State/UT Govt. The premium grant is going to be phased enter an amount of 3 to 5 years, subject to review of the monetary results and also the response of the farmers at the top of the primary year of the implementation of the theme. The definition of tiny and Marginal farmer would be as follows:

  • Small Farmer: A Cultivator with a landholding of two hectares (5 acres) or less, as outlined within the land ceiling legislation of the involved State/ UT.
  • Marginal Farmer: A Cultivator with a landholding of one area unit or less (2.5 acres).

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