Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 73
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::printArticle() - APP/Controller/ArtileDetailController.php, line 73
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Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 74
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::printArticle() - APP/Controller/ArtileDetailController.php, line 74
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

                trigger_error($message, E_USER_WARNING);

            } else {
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		&#039;title&#039; =&gt; &#039;Crop insurance: new dawn for farmers? -Rajalakshmi Nirmal&#039;,
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-The Hindu Business Line&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;The new scheme offers lower premium, more risk cover and hassle-free settlement&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment of compensation have kept farmers away from them.&lt;br /&gt;
&lt;br /&gt;
Given the high risk of crop damage in India, with significant loss in food grain production in 18 of the last 54 years (which is once in every three years as per data from the Commission for Agriculture Costs and Prices), it has become vital to address the flaws in the existing crop insurance schemes &amp;mdash; the National Agriculture Insurance scheme (NAIS) and MNAIS (modified NAIS).&lt;br /&gt;
&lt;br /&gt;
Out of the total farm land of 195.26 million hectares in the country, only 42.82 million hectares or 22 per cent is insured. It is in this backdrop that the Centre launched the Pradhan Mantri Fasal Bima Yojana in January this year. While the outline of the scheme looks attractive, the success of the plan lies in its implementation.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Adequate sum insured&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The main setback with the existing crop insurance schemes is that the sum insured (SI) is too small to make any difference to the farmer. In 2013-14, for instance, while the average per hectare output was worth Rs. 41,442, the sum insured (SI) under various crop insurance schemes was just Rs. 18,464 (kharif - Rs. 19,141 and rabi - Rs. 16,927).&lt;br /&gt;
&lt;br /&gt;
While the insured sum here looks sufficient to cover the cost of production, it is way less than a farmer&amp;rsquo;s income in a normal season. In MNAIS, the Centre capped the maximum premium that can be paid for a crop. So, in crops where actuarial rates were higher, insurers reduced the sum insured proportionately, says Ashish Agarwal, Head - Agri Business, Bajaj Allianz General Insurance, which covers about 38 lakh farmers under its crop insurance scheme in 2015-16.&lt;br /&gt;
&lt;br /&gt;
For instance, suppose in Uttar Pradesh&amp;rsquo;s Lalitpur district, the actuarial premium (based on the assessment of risk by the insurer) was fixed at 22 per cent for paddy, but 11 per cent was the cap on premium fixed by the Centre. So, even if the farmer wanted SI of Rs. 30,000/hectare, he would get cover for only Rs. 15,000 (Rs. 30,000* 11% = Rs. 3,300 = is the maximum amount that can be collected as premium, but the insurer can go only with his actuarial rate, so he will reduce the SI to Rs. 15,000: Rs. 15,000*22% =Rs. 3,300). This, however, will change with the new scheme. Under the Pradhan Mantri Fasal Bima Yojana, there is no cap on premium. So the farmer will be covered for the full Rs. 30,000 and the premium will be paid to the insurer &amp;mdash; Rs. 600 by the farmer and Rs. 6,000 by the State and the Centre (earlier, the farmer paid Rs. 900 and the Centre Rs. 2,400).&lt;br /&gt;
&lt;br /&gt;
In the new scheme, the sum insured is the average of the past seven years &amp;lsquo;threshold&amp;rsquo; yield for the specific crop (excluding calamity years) in the village it is grown, multiplied by the minimum support price (MSP).&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Lower premium&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
In the existing crop insurance schemes, farmers cough up substantial costs for insurance. In the Pradhan Mantri Fasal Bima Yojana, however, the premium outgo will drop substantially. Farmers will have to pay just 2 per cent of the SI for all kharif crops, 1.5 per cent for rabi and 5 per cent for commercial or horticulture crops.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Wider coverage&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
Unlike in the earlier schemes, in the new one, there is greater risk coverage. For instance, there was no cover for risks specific to a region (landslide, inundation) in NAIS. In MNAIS, risk of loss to cyclonic rains was given only to coastal regions.&lt;br /&gt;
&lt;br /&gt;
Under the Pradhan Mantri Fasal Bima Yojana all risks are covered. Post-harvest losses due to cyclonic rain or thunder are covered for farmers across India. Also, unlike in NAIS, the new scheme covers loss due to adverse weather conditions preventing sowing of crops after expenditure has been incurred.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Faster settlement&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
A delayed settlement process for crop loss defeats the very purpose of insurance. The delay in settling claims for existing schemes was sometimes as long as six months to a year. Amit Bhandari, Head &amp;ndash; Health &amp;amp; Agriculture, Underwriting and Claims at ICICI Lombard General Insurance, says, &amp;ldquo;Estimation of yield through manual crop cutting experiments and the time lag in sharing the yield data with insurance companies results in delay in settlement.&amp;rdquo;&lt;br /&gt;
&lt;br /&gt;
To expedite the process, the Centre has directed the use of drones and other satellite-based technology when assessing crop damage and estimating acreage. It has also mandated authorities to use smart phones to capture images of crops to improve the quality of yield data. As the images come with GPS time stamping, the process will be more reliable.&lt;br /&gt;
&lt;br /&gt;
Another leading general insurer says the Centre has now laid down the deadlines clearly. From the number of days within which the State has to give the certified yield data to the insurance company, to the maximum number of days within which the Centre/State has to pay their premium subsidy to the insurer, and the number of days for the insurance company to settle claims &amp;mdash; everything has been put down on paper. &lt;br /&gt;
&lt;/div&gt;&#039;,
		&#039;credit_writer&#039; =&gt; &#039;The Hindu Business Line, 3 April, 2016, http://www.thehindubusinessline.com/portfolio/real-assets/crop-insurance-new-dawn-for-farmers/article8429520.ece&#039;,
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-The Hindu Business Line

The new scheme offers lower premium, more risk cover and hassle-free settlement

Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;-The Hindu Business Line&lt;br /&gt;&lt;br /&gt;&lt;em&gt;The new scheme offers lower premium, more risk cover and hassle-free settlement&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment of compensation have kept farmers away from them.&lt;br /&gt;&lt;br /&gt;Given the high risk of crop damage in India, with significant loss in food grain production in 18 of the last 54 years (which is once in every three years as per data from the Commission for Agriculture Costs and Prices), it has become vital to address the flaws in the existing crop insurance schemes &amp;mdash; the National Agriculture Insurance scheme (NAIS) and MNAIS (modified NAIS).&lt;br /&gt;&lt;br /&gt;Out of the total farm land of 195.26 million hectares in the country, only 42.82 million hectares or 22 per cent is insured. It is in this backdrop that the Centre launched the Pradhan Mantri Fasal Bima Yojana in January this year. While the outline of the scheme looks attractive, the success of the plan lies in its implementation.&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Adequate sum insured&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;The main setback with the existing crop insurance schemes is that the sum insured (SI) is too small to make any difference to the farmer. In 2013-14, for instance, while the average per hectare output was worth Rs. 41,442, the sum insured (SI) under various crop insurance schemes was just Rs. 18,464 (kharif - Rs. 19,141 and rabi - Rs. 16,927).&lt;br /&gt;&lt;br /&gt;While the insured sum here looks sufficient to cover the cost of production, it is way less than a farmer&amp;rsquo;s income in a normal season. In MNAIS, the Centre capped the maximum premium that can be paid for a crop. So, in crops where actuarial rates were higher, insurers reduced the sum insured proportionately, says Ashish Agarwal, Head - Agri Business, Bajaj Allianz General Insurance, which covers about 38 lakh farmers under its crop insurance scheme in 2015-16.&lt;br /&gt;&lt;br /&gt;For instance, suppose in Uttar Pradesh&amp;rsquo;s Lalitpur district, the actuarial premium (based on the assessment of risk by the insurer) was fixed at 22 per cent for paddy, but 11 per cent was the cap on premium fixed by the Centre. So, even if the farmer wanted SI of Rs. 30,000/hectare, he would get cover for only Rs. 15,000 (Rs. 30,000* 11% = Rs. 3,300 = is the maximum amount that can be collected as premium, but the insurer can go only with his actuarial rate, so he will reduce the SI to Rs. 15,000: Rs. 15,000*22% =Rs. 3,300). This, however, will change with the new scheme. Under the Pradhan Mantri Fasal Bima Yojana, there is no cap on premium. So the farmer will be covered for the full Rs. 30,000 and the premium will be paid to the insurer &amp;mdash; Rs. 600 by the farmer and Rs. 6,000 by the State and the Centre (earlier, the farmer paid Rs. 900 and the Centre Rs. 2,400).&lt;br /&gt;&lt;br /&gt;In the new scheme, the sum insured is the average of the past seven years &amp;lsquo;threshold&amp;rsquo; yield for the specific crop (excluding calamity years) in the village it is grown, multiplied by the minimum support price (MSP).&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Lower premium&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;In the existing crop insurance schemes, farmers cough up substantial costs for insurance. In the Pradhan Mantri Fasal Bima Yojana, however, the premium outgo will drop substantially. Farmers will have to pay just 2 per cent of the SI for all kharif crops, 1.5 per cent for rabi and 5 per cent for commercial or horticulture crops.&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Wider coverage&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;Unlike in the earlier schemes, in the new one, there is greater risk coverage. For instance, there was no cover for risks specific to a region (landslide, inundation) in NAIS. In MNAIS, risk of loss to cyclonic rains was given only to coastal regions.&lt;br /&gt;&lt;br /&gt;Under the Pradhan Mantri Fasal Bima Yojana all risks are covered. Post-harvest losses due to cyclonic rain or thunder are covered for farmers across India. Also, unlike in NAIS, the new scheme covers loss due to adverse weather conditions preventing sowing of crops after expenditure has been incurred.&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Faster settlement&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;A delayed settlement process for crop loss defeats the very purpose of insurance. The delay in settling claims for existing schemes was sometimes as long as six months to a year. Amit Bhandari, Head &amp;ndash; Health &amp;amp; Agriculture, Underwriting and Claims at ICICI Lombard General Insurance, says, &amp;ldquo;Estimation of yield through manual crop cutting experiments and the time lag in sharing the yield data with insurance companies results in delay in settlement.&amp;rdquo;&lt;br /&gt;&lt;br /&gt;To expedite the process, the Centre has directed the use of drones and other satellite-based technology when assessing crop damage and estimating acreage. It has also mandated authorities to use smart phones to capture images of crops to improve the quality of yield data. As the images come with GPS time stamping, the process will be more reliable.&lt;br /&gt;&lt;br /&gt;Another leading general insurer says the Centre has now laid down the deadlines clearly. From the number of days within which the State has to give the certified yield data to the insurance company, to the maximum number of days within which the Centre/State has to pay their premium subsidy to the insurer, and the number of days for the insurance company to settle claims &amp;mdash; everything has been put down on paper. &lt;br /&gt;&lt;/div&gt;&#039;,
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	&#039;subheading&#039; =&gt; &#039;&#039;,
	&#039;description&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;
-The Hindu Business Line&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;The new scheme offers lower premium, more risk cover and hassle-free settlement&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment of compensation have kept farmers away from them.&lt;br /&gt;
&lt;br /&gt;
Given the high risk of crop damage in India, with significant loss in food grain production in 18 of the last 54 years (which is once in every three years as per data from the Commission for Agriculture Costs and Prices), it has become vital to address the flaws in the existing crop insurance schemes &amp;mdash; the National Agriculture Insurance scheme (NAIS) and MNAIS (modified NAIS).&lt;br /&gt;
&lt;br /&gt;
Out of the total farm land of 195.26 million hectares in the country, only 42.82 million hectares or 22 per cent is insured. It is in this backdrop that the Centre launched the Pradhan Mantri Fasal Bima Yojana in January this year. While the outline of the scheme looks attractive, the success of the plan lies in its implementation.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Adequate sum insured&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The main setback with the existing crop insurance schemes is that the sum insured (SI) is too small to make any difference to the farmer. In 2013-14, for instance, while the average per hectare output was worth Rs. 41,442, the sum insured (SI) under various crop insurance schemes was just Rs. 18,464 (kharif - Rs. 19,141 and rabi - Rs. 16,927).&lt;br /&gt;
&lt;br /&gt;
While the insured sum here looks sufficient to cover the cost of production, it is way less than a farmer&amp;rsquo;s income in a normal season. In MNAIS, the Centre capped the maximum premium that can be paid for a crop. So, in crops where actuarial rates were higher, insurers reduced the sum insured proportionately, says Ashish Agarwal, Head - Agri Business, Bajaj Allianz General Insurance, which covers about 38 lakh farmers under its crop insurance scheme in 2015-16.&lt;br /&gt;
&lt;br /&gt;
For instance, suppose in Uttar Pradesh&amp;rsquo;s Lalitpur district, the actuarial premium (based on the assessment of risk by the insurer) was fixed at 22 per cent for paddy, but 11 per cent was the cap on premium fixed by the Centre. So, even if the farmer wanted SI of Rs. 30,000/hectare, he would get cover for only Rs. 15,000 (Rs. 30,000* 11% = Rs. 3,300 = is the maximum amount that can be collected as premium, but the insurer can go only with his actuarial rate, so he will reduce the SI to Rs. 15,000: Rs. 15,000*22% =Rs. 3,300). This, however, will change with the new scheme. Under the Pradhan Mantri Fasal Bima Yojana, there is no cap on premium. So the farmer will be covered for the full Rs. 30,000 and the premium will be paid to the insurer &amp;mdash; Rs. 600 by the farmer and Rs. 6,000 by the State and the Centre (earlier, the farmer paid Rs. 900 and the Centre Rs. 2,400).&lt;br /&gt;
&lt;br /&gt;
In the new scheme, the sum insured is the average of the past seven years &amp;lsquo;threshold&amp;rsquo; yield for the specific crop (excluding calamity years) in the village it is grown, multiplied by the minimum support price (MSP).&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Lower premium&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
In the existing crop insurance schemes, farmers cough up substantial costs for insurance. In the Pradhan Mantri Fasal Bima Yojana, however, the premium outgo will drop substantially. Farmers will have to pay just 2 per cent of the SI for all kharif crops, 1.5 per cent for rabi and 5 per cent for commercial or horticulture crops.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Wider coverage&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
Unlike in the earlier schemes, in the new one, there is greater risk coverage. For instance, there was no cover for risks specific to a region (landslide, inundation) in NAIS. In MNAIS, risk of loss to cyclonic rains was given only to coastal regions.&lt;br /&gt;
&lt;br /&gt;
Under the Pradhan Mantri Fasal Bima Yojana all risks are covered. Post-harvest losses due to cyclonic rain or thunder are covered for farmers across India. Also, unlike in NAIS, the new scheme covers loss due to adverse weather conditions preventing sowing of crops after expenditure has been incurred.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Faster settlement&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
A delayed settlement process for crop loss defeats the very purpose of insurance. The delay in settling claims for existing schemes was sometimes as long as six months to a year. Amit Bhandari, Head &amp;ndash; Health &amp;amp; Agriculture, Underwriting and Claims at ICICI Lombard General Insurance, says, &amp;ldquo;Estimation of yield through manual crop cutting experiments and the time lag in sharing the yield data with insurance companies results in delay in settlement.&amp;rdquo;&lt;br /&gt;
&lt;br /&gt;
To expedite the process, the Centre has directed the use of drones and other satellite-based technology when assessing crop damage and estimating acreage. It has also mandated authorities to use smart phones to capture images of crops to improve the quality of yield data. As the images come with GPS time stamping, the process will be more reliable.&lt;br /&gt;
&lt;br /&gt;
Another leading general insurer says the Centre has now laid down the deadlines clearly. From the number of days within which the State has to give the certified yield data to the insurance company, to the maximum number of days within which the Centre/State has to pay their premium subsidy to the insurer, and the number of days for the insurance company to settle claims &amp;mdash; everything has been put down on paper. &lt;br /&gt;
&lt;/div&gt;&#039;,
	&#039;credit_writer&#039; =&gt; &#039;The Hindu Business Line, 3 April, 2016, http://www.thehindubusinessline.com/portfolio/real-assets/crop-insurance-new-dawn-for-farmers/article8429520.ece&#039;,
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-The Hindu Business Line

The new scheme offers lower premium, more risk cover and hassle-free settlement

Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment...&#039;
$disp = &#039;&lt;div align=&quot;justify&quot;&gt;-The Hindu Business Line&lt;br /&gt;&lt;br /&gt;&lt;em&gt;The new scheme offers lower premium, more risk cover and hassle-free settlement&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment of compensation have kept farmers away from them.&lt;br /&gt;&lt;br /&gt;Given the high risk of crop damage in India, with significant loss in food grain production in 18 of the last 54 years (which is once in every three years as per data from the Commission for Agriculture Costs and Prices), it has become vital to address the flaws in the existing crop insurance schemes &amp;mdash; the National Agriculture Insurance scheme (NAIS) and MNAIS (modified NAIS).&lt;br /&gt;&lt;br /&gt;Out of the total farm land of 195.26 million hectares in the country, only 42.82 million hectares or 22 per cent is insured. It is in this backdrop that the Centre launched the Pradhan Mantri Fasal Bima Yojana in January this year. While the outline of the scheme looks attractive, the success of the plan lies in its implementation.&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Adequate sum insured&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;The main setback with the existing crop insurance schemes is that the sum insured (SI) is too small to make any difference to the farmer. In 2013-14, for instance, while the average per hectare output was worth Rs. 41,442, the sum insured (SI) under various crop insurance schemes was just Rs. 18,464 (kharif - Rs. 19,141 and rabi - Rs. 16,927).&lt;br /&gt;&lt;br /&gt;While the insured sum here looks sufficient to cover the cost of production, it is way less than a farmer&amp;rsquo;s income in a normal season. In MNAIS, the Centre capped the maximum premium that can be paid for a crop. So, in crops where actuarial rates were higher, insurers reduced the sum insured proportionately, says Ashish Agarwal, Head - Agri Business, Bajaj Allianz General Insurance, which covers about 38 lakh farmers under its crop insurance scheme in 2015-16.&lt;br /&gt;&lt;br /&gt;For instance, suppose in Uttar Pradesh&amp;rsquo;s Lalitpur district, the actuarial premium (based on the assessment of risk by the insurer) was fixed at 22 per cent for paddy, but 11 per cent was the cap on premium fixed by the Centre. So, even if the farmer wanted SI of Rs. 30,000/hectare, he would get cover for only Rs. 15,000 (Rs. 30,000* 11% = Rs. 3,300 = is the maximum amount that can be collected as premium, but the insurer can go only with his actuarial rate, so he will reduce the SI to Rs. 15,000: Rs. 15,000*22% =Rs. 3,300). This, however, will change with the new scheme. Under the Pradhan Mantri Fasal Bima Yojana, there is no cap on premium. So the farmer will be covered for the full Rs. 30,000 and the premium will be paid to the insurer &amp;mdash; Rs. 600 by the farmer and Rs. 6,000 by the State and the Centre (earlier, the farmer paid Rs. 900 and the Centre Rs. 2,400).&lt;br /&gt;&lt;br /&gt;In the new scheme, the sum insured is the average of the past seven years &amp;lsquo;threshold&amp;rsquo; yield for the specific crop (excluding calamity years) in the village it is grown, multiplied by the minimum support price (MSP).&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Lower premium&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;In the existing crop insurance schemes, farmers cough up substantial costs for insurance. In the Pradhan Mantri Fasal Bima Yojana, however, the premium outgo will drop substantially. Farmers will have to pay just 2 per cent of the SI for all kharif crops, 1.5 per cent for rabi and 5 per cent for commercial or horticulture crops.&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Wider coverage&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;Unlike in the earlier schemes, in the new one, there is greater risk coverage. For instance, there was no cover for risks specific to a region (landslide, inundation) in NAIS. In MNAIS, risk of loss to cyclonic rains was given only to coastal regions.&lt;br /&gt;&lt;br /&gt;Under the Pradhan Mantri Fasal Bima Yojana all risks are covered. Post-harvest losses due to cyclonic rain or thunder are covered for farmers across India. Also, unlike in NAIS, the new scheme covers loss due to adverse weather conditions preventing sowing of crops after expenditure has been incurred.&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Faster settlement&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;A delayed settlement process for crop loss defeats the very purpose of insurance. The delay in settling claims for existing schemes was sometimes as long as six months to a year. Amit Bhandari, Head &amp;ndash; Health &amp;amp; Agriculture, Underwriting and Claims at ICICI Lombard General Insurance, says, &amp;ldquo;Estimation of yield through manual crop cutting experiments and the time lag in sharing the yield data with insurance companies results in delay in settlement.&amp;rdquo;&lt;br /&gt;&lt;br /&gt;To expedite the process, the Centre has directed the use of drones and other satellite-based technology when assessing crop damage and estimating acreage. It has also mandated authorities to use smart phones to capture images of crops to improve the quality of yield data. As the images come with GPS time stamping, the process will be more reliable.&lt;br /&gt;&lt;br /&gt;Another leading general insurer says the Centre has now laid down the deadlines clearly. From the number of days within which the State has to give the certified yield data to the insurance company, to the maximum number of days within which the Centre/State has to pay their premium subsidy to the insurer, and the number of days for the insurance company to settle claims &amp;mdash; everything has been put down on paper. &lt;br /&gt;&lt;/div&gt;&#039;
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The new scheme offers lower premium, more risk cover and hassle-free settlement

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                <strong>Crop insurance: new dawn for farmers? -Rajalakshmi Nirmal</strong></h1>
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                <div align="justify">-The Hindu Business Line<br /><br /><em>The new scheme offers lower premium, more risk cover and hassle-free settlement<br /></em><br />Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment of compensation have kept farmers away from them.<br /><br />Given the high risk of crop damage in India, with significant loss in food grain production in 18 of the last 54 years (which is once in every three years as per data from the Commission for Agriculture Costs and Prices), it has become vital to address the flaws in the existing crop insurance schemes &mdash; the National Agriculture Insurance scheme (NAIS) and MNAIS (modified NAIS).<br /><br />Out of the total farm land of 195.26 million hectares in the country, only 42.82 million hectares or 22 per cent is insured. It is in this backdrop that the Centre launched the Pradhan Mantri Fasal Bima Yojana in January this year. While the outline of the scheme looks attractive, the success of the plan lies in its implementation.<br /><br /><em>Adequate sum insured<br /></em><br />The main setback with the existing crop insurance schemes is that the sum insured (SI) is too small to make any difference to the farmer. In 2013-14, for instance, while the average per hectare output was worth Rs. 41,442, the sum insured (SI) under various crop insurance schemes was just Rs. 18,464 (kharif - Rs. 19,141 and rabi - Rs. 16,927).<br /><br />While the insured sum here looks sufficient to cover the cost of production, it is way less than a farmer&rsquo;s income in a normal season. In MNAIS, the Centre capped the maximum premium that can be paid for a crop. So, in crops where actuarial rates were higher, insurers reduced the sum insured proportionately, says Ashish Agarwal, Head - Agri Business, Bajaj Allianz General Insurance, which covers about 38 lakh farmers under its crop insurance scheme in 2015-16.<br /><br />For instance, suppose in Uttar Pradesh&rsquo;s Lalitpur district, the actuarial premium (based on the assessment of risk by the insurer) was fixed at 22 per cent for paddy, but 11 per cent was the cap on premium fixed by the Centre. So, even if the farmer wanted SI of Rs. 30,000/hectare, he would get cover for only Rs. 15,000 (Rs. 30,000* 11% = Rs. 3,300 = is the maximum amount that can be collected as premium, but the insurer can go only with his actuarial rate, so he will reduce the SI to Rs. 15,000: Rs. 15,000*22% =Rs. 3,300). This, however, will change with the new scheme. Under the Pradhan Mantri Fasal Bima Yojana, there is no cap on premium. So the farmer will be covered for the full Rs. 30,000 and the premium will be paid to the insurer &mdash; Rs. 600 by the farmer and Rs. 6,000 by the State and the Centre (earlier, the farmer paid Rs. 900 and the Centre Rs. 2,400).<br /><br />In the new scheme, the sum insured is the average of the past seven years &lsquo;threshold&rsquo; yield for the specific crop (excluding calamity years) in the village it is grown, multiplied by the minimum support price (MSP).<br /><br /><em>Lower premium<br /></em><br />In the existing crop insurance schemes, farmers cough up substantial costs for insurance. In the Pradhan Mantri Fasal Bima Yojana, however, the premium outgo will drop substantially. Farmers will have to pay just 2 per cent of the SI for all kharif crops, 1.5 per cent for rabi and 5 per cent for commercial or horticulture crops.<br /><br /><em>Wider coverage<br /></em><br />Unlike in the earlier schemes, in the new one, there is greater risk coverage. For instance, there was no cover for risks specific to a region (landslide, inundation) in NAIS. In MNAIS, risk of loss to cyclonic rains was given only to coastal regions.<br /><br />Under the Pradhan Mantri Fasal Bima Yojana all risks are covered. Post-harvest losses due to cyclonic rain or thunder are covered for farmers across India. Also, unlike in NAIS, the new scheme covers loss due to adverse weather conditions preventing sowing of crops after expenditure has been incurred.<br /><br /><em>Faster settlement<br /></em><br />A delayed settlement process for crop loss defeats the very purpose of insurance. The delay in settling claims for existing schemes was sometimes as long as six months to a year. Amit Bhandari, Head &ndash; Health &amp; Agriculture, Underwriting and Claims at ICICI Lombard General Insurance, says, &ldquo;Estimation of yield through manual crop cutting experiments and the time lag in sharing the yield data with insurance companies results in delay in settlement.&rdquo;<br /><br />To expedite the process, the Centre has directed the use of drones and other satellite-based technology when assessing crop damage and estimating acreage. It has also mandated authorities to use smart phones to capture images of crops to improve the quality of yield data. As the images come with GPS time stamping, the process will be more reliable.<br /><br />Another leading general insurer says the Centre has now laid down the deadlines clearly. From the number of days within which the State has to give the certified yield data to the insurance company, to the maximum number of days within which the Centre/State has to pay their premium subsidy to the insurer, and the number of days for the insurance company to settle claims &mdash; everything has been put down on paper. <br /></div>               </font>
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		&#039;title&#039; =&gt; &#039;Crop insurance: new dawn for farmers? -Rajalakshmi Nirmal&#039;,
		&#039;subheading&#039; =&gt; &#039;&#039;,
		&#039;description&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;
-The Hindu Business Line&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;The new scheme offers lower premium, more risk cover and hassle-free settlement&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment of compensation have kept farmers away from them.&lt;br /&gt;
&lt;br /&gt;
Given the high risk of crop damage in India, with significant loss in food grain production in 18 of the last 54 years (which is once in every three years as per data from the Commission for Agriculture Costs and Prices), it has become vital to address the flaws in the existing crop insurance schemes &amp;mdash; the National Agriculture Insurance scheme (NAIS) and MNAIS (modified NAIS).&lt;br /&gt;
&lt;br /&gt;
Out of the total farm land of 195.26 million hectares in the country, only 42.82 million hectares or 22 per cent is insured. It is in this backdrop that the Centre launched the Pradhan Mantri Fasal Bima Yojana in January this year. While the outline of the scheme looks attractive, the success of the plan lies in its implementation.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Adequate sum insured&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The main setback with the existing crop insurance schemes is that the sum insured (SI) is too small to make any difference to the farmer. In 2013-14, for instance, while the average per hectare output was worth Rs. 41,442, the sum insured (SI) under various crop insurance schemes was just Rs. 18,464 (kharif - Rs. 19,141 and rabi - Rs. 16,927).&lt;br /&gt;
&lt;br /&gt;
While the insured sum here looks sufficient to cover the cost of production, it is way less than a farmer&amp;rsquo;s income in a normal season. In MNAIS, the Centre capped the maximum premium that can be paid for a crop. So, in crops where actuarial rates were higher, insurers reduced the sum insured proportionately, says Ashish Agarwal, Head - Agri Business, Bajaj Allianz General Insurance, which covers about 38 lakh farmers under its crop insurance scheme in 2015-16.&lt;br /&gt;
&lt;br /&gt;
For instance, suppose in Uttar Pradesh&amp;rsquo;s Lalitpur district, the actuarial premium (based on the assessment of risk by the insurer) was fixed at 22 per cent for paddy, but 11 per cent was the cap on premium fixed by the Centre. So, even if the farmer wanted SI of Rs. 30,000/hectare, he would get cover for only Rs. 15,000 (Rs. 30,000* 11% = Rs. 3,300 = is the maximum amount that can be collected as premium, but the insurer can go only with his actuarial rate, so he will reduce the SI to Rs. 15,000: Rs. 15,000*22% =Rs. 3,300). This, however, will change with the new scheme. Under the Pradhan Mantri Fasal Bima Yojana, there is no cap on premium. So the farmer will be covered for the full Rs. 30,000 and the premium will be paid to the insurer &amp;mdash; Rs. 600 by the farmer and Rs. 6,000 by the State and the Centre (earlier, the farmer paid Rs. 900 and the Centre Rs. 2,400).&lt;br /&gt;
&lt;br /&gt;
In the new scheme, the sum insured is the average of the past seven years &amp;lsquo;threshold&amp;rsquo; yield for the specific crop (excluding calamity years) in the village it is grown, multiplied by the minimum support price (MSP).&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Lower premium&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
In the existing crop insurance schemes, farmers cough up substantial costs for insurance. In the Pradhan Mantri Fasal Bima Yojana, however, the premium outgo will drop substantially. Farmers will have to pay just 2 per cent of the SI for all kharif crops, 1.5 per cent for rabi and 5 per cent for commercial or horticulture crops.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Wider coverage&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
Unlike in the earlier schemes, in the new one, there is greater risk coverage. For instance, there was no cover for risks specific to a region (landslide, inundation) in NAIS. In MNAIS, risk of loss to cyclonic rains was given only to coastal regions.&lt;br /&gt;
&lt;br /&gt;
Under the Pradhan Mantri Fasal Bima Yojana all risks are covered. Post-harvest losses due to cyclonic rain or thunder are covered for farmers across India. Also, unlike in NAIS, the new scheme covers loss due to adverse weather conditions preventing sowing of crops after expenditure has been incurred.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Faster settlement&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
A delayed settlement process for crop loss defeats the very purpose of insurance. The delay in settling claims for existing schemes was sometimes as long as six months to a year. Amit Bhandari, Head &amp;ndash; Health &amp;amp; Agriculture, Underwriting and Claims at ICICI Lombard General Insurance, says, &amp;ldquo;Estimation of yield through manual crop cutting experiments and the time lag in sharing the yield data with insurance companies results in delay in settlement.&amp;rdquo;&lt;br /&gt;
&lt;br /&gt;
To expedite the process, the Centre has directed the use of drones and other satellite-based technology when assessing crop damage and estimating acreage. It has also mandated authorities to use smart phones to capture images of crops to improve the quality of yield data. As the images come with GPS time stamping, the process will be more reliable.&lt;br /&gt;
&lt;br /&gt;
Another leading general insurer says the Centre has now laid down the deadlines clearly. From the number of days within which the State has to give the certified yield data to the insurance company, to the maximum number of days within which the Centre/State has to pay their premium subsidy to the insurer, and the number of days for the insurance company to settle claims &amp;mdash; everything has been put down on paper. &lt;br /&gt;
&lt;/div&gt;&#039;,
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	&#039;metaTitle&#039; =&gt; &#039;LATEST NEWS UPDATES | Crop insurance: new dawn for farmers? -Rajalakshmi Nirmal&#039;,
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-The Hindu Business Line

The new scheme offers lower premium, more risk cover and hassle-free settlement

Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;-The Hindu Business Line&lt;br /&gt;&lt;br /&gt;&lt;em&gt;The new scheme offers lower premium, more risk cover and hassle-free settlement&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment of compensation have kept farmers away from them.&lt;br /&gt;&lt;br /&gt;Given the high risk of crop damage in India, with significant loss in food grain production in 18 of the last 54 years (which is once in every three years as per data from the Commission for Agriculture Costs and Prices), it has become vital to address the flaws in the existing crop insurance schemes &amp;mdash; the National Agriculture Insurance scheme (NAIS) and MNAIS (modified NAIS).&lt;br /&gt;&lt;br /&gt;Out of the total farm land of 195.26 million hectares in the country, only 42.82 million hectares or 22 per cent is insured. It is in this backdrop that the Centre launched the Pradhan Mantri Fasal Bima Yojana in January this year. While the outline of the scheme looks attractive, the success of the plan lies in its implementation.&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Adequate sum insured&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;The main setback with the existing crop insurance schemes is that the sum insured (SI) is too small to make any difference to the farmer. In 2013-14, for instance, while the average per hectare output was worth Rs. 41,442, the sum insured (SI) under various crop insurance schemes was just Rs. 18,464 (kharif - Rs. 19,141 and rabi - Rs. 16,927).&lt;br /&gt;&lt;br /&gt;While the insured sum here looks sufficient to cover the cost of production, it is way less than a farmer&amp;rsquo;s income in a normal season. In MNAIS, the Centre capped the maximum premium that can be paid for a crop. So, in crops where actuarial rates were higher, insurers reduced the sum insured proportionately, says Ashish Agarwal, Head - Agri Business, Bajaj Allianz General Insurance, which covers about 38 lakh farmers under its crop insurance scheme in 2015-16.&lt;br /&gt;&lt;br /&gt;For instance, suppose in Uttar Pradesh&amp;rsquo;s Lalitpur district, the actuarial premium (based on the assessment of risk by the insurer) was fixed at 22 per cent for paddy, but 11 per cent was the cap on premium fixed by the Centre. So, even if the farmer wanted SI of Rs. 30,000/hectare, he would get cover for only Rs. 15,000 (Rs. 30,000* 11% = Rs. 3,300 = is the maximum amount that can be collected as premium, but the insurer can go only with his actuarial rate, so he will reduce the SI to Rs. 15,000: Rs. 15,000*22% =Rs. 3,300). This, however, will change with the new scheme. Under the Pradhan Mantri Fasal Bima Yojana, there is no cap on premium. So the farmer will be covered for the full Rs. 30,000 and the premium will be paid to the insurer &amp;mdash; Rs. 600 by the farmer and Rs. 6,000 by the State and the Centre (earlier, the farmer paid Rs. 900 and the Centre Rs. 2,400).&lt;br /&gt;&lt;br /&gt;In the new scheme, the sum insured is the average of the past seven years &amp;lsquo;threshold&amp;rsquo; yield for the specific crop (excluding calamity years) in the village it is grown, multiplied by the minimum support price (MSP).&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Lower premium&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;In the existing crop insurance schemes, farmers cough up substantial costs for insurance. In the Pradhan Mantri Fasal Bima Yojana, however, the premium outgo will drop substantially. Farmers will have to pay just 2 per cent of the SI for all kharif crops, 1.5 per cent for rabi and 5 per cent for commercial or horticulture crops.&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Wider coverage&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;Unlike in the earlier schemes, in the new one, there is greater risk coverage. For instance, there was no cover for risks specific to a region (landslide, inundation) in NAIS. In MNAIS, risk of loss to cyclonic rains was given only to coastal regions.&lt;br /&gt;&lt;br /&gt;Under the Pradhan Mantri Fasal Bima Yojana all risks are covered. Post-harvest losses due to cyclonic rain or thunder are covered for farmers across India. Also, unlike in NAIS, the new scheme covers loss due to adverse weather conditions preventing sowing of crops after expenditure has been incurred.&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Faster settlement&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;A delayed settlement process for crop loss defeats the very purpose of insurance. The delay in settling claims for existing schemes was sometimes as long as six months to a year. Amit Bhandari, Head &amp;ndash; Health &amp;amp; Agriculture, Underwriting and Claims at ICICI Lombard General Insurance, says, &amp;ldquo;Estimation of yield through manual crop cutting experiments and the time lag in sharing the yield data with insurance companies results in delay in settlement.&amp;rdquo;&lt;br /&gt;&lt;br /&gt;To expedite the process, the Centre has directed the use of drones and other satellite-based technology when assessing crop damage and estimating acreage. It has also mandated authorities to use smart phones to capture images of crops to improve the quality of yield data. As the images come with GPS time stamping, the process will be more reliable.&lt;br /&gt;&lt;br /&gt;Another leading general insurer says the Centre has now laid down the deadlines clearly. From the number of days within which the State has to give the certified yield data to the insurance company, to the maximum number of days within which the Centre/State has to pay their premium subsidy to the insurer, and the number of days for the insurance company to settle claims &amp;mdash; everything has been put down on paper. &lt;br /&gt;&lt;/div&gt;&#039;,
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	&#039;id&#039; =&gt; (int) 30956,
	&#039;title&#039; =&gt; &#039;Crop insurance: new dawn for farmers? -Rajalakshmi Nirmal&#039;,
	&#039;subheading&#039; =&gt; &#039;&#039;,
	&#039;description&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;
-The Hindu Business Line&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;The new scheme offers lower premium, more risk cover and hassle-free settlement&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment of compensation have kept farmers away from them.&lt;br /&gt;
&lt;br /&gt;
Given the high risk of crop damage in India, with significant loss in food grain production in 18 of the last 54 years (which is once in every three years as per data from the Commission for Agriculture Costs and Prices), it has become vital to address the flaws in the existing crop insurance schemes &amp;mdash; the National Agriculture Insurance scheme (NAIS) and MNAIS (modified NAIS).&lt;br /&gt;
&lt;br /&gt;
Out of the total farm land of 195.26 million hectares in the country, only 42.82 million hectares or 22 per cent is insured. It is in this backdrop that the Centre launched the Pradhan Mantri Fasal Bima Yojana in January this year. While the outline of the scheme looks attractive, the success of the plan lies in its implementation.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Adequate sum insured&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The main setback with the existing crop insurance schemes is that the sum insured (SI) is too small to make any difference to the farmer. In 2013-14, for instance, while the average per hectare output was worth Rs. 41,442, the sum insured (SI) under various crop insurance schemes was just Rs. 18,464 (kharif - Rs. 19,141 and rabi - Rs. 16,927).&lt;br /&gt;
&lt;br /&gt;
While the insured sum here looks sufficient to cover the cost of production, it is way less than a farmer&amp;rsquo;s income in a normal season. In MNAIS, the Centre capped the maximum premium that can be paid for a crop. So, in crops where actuarial rates were higher, insurers reduced the sum insured proportionately, says Ashish Agarwal, Head - Agri Business, Bajaj Allianz General Insurance, which covers about 38 lakh farmers under its crop insurance scheme in 2015-16.&lt;br /&gt;
&lt;br /&gt;
For instance, suppose in Uttar Pradesh&amp;rsquo;s Lalitpur district, the actuarial premium (based on the assessment of risk by the insurer) was fixed at 22 per cent for paddy, but 11 per cent was the cap on premium fixed by the Centre. So, even if the farmer wanted SI of Rs. 30,000/hectare, he would get cover for only Rs. 15,000 (Rs. 30,000* 11% = Rs. 3,300 = is the maximum amount that can be collected as premium, but the insurer can go only with his actuarial rate, so he will reduce the SI to Rs. 15,000: Rs. 15,000*22% =Rs. 3,300). This, however, will change with the new scheme. Under the Pradhan Mantri Fasal Bima Yojana, there is no cap on premium. So the farmer will be covered for the full Rs. 30,000 and the premium will be paid to the insurer &amp;mdash; Rs. 600 by the farmer and Rs. 6,000 by the State and the Centre (earlier, the farmer paid Rs. 900 and the Centre Rs. 2,400).&lt;br /&gt;
&lt;br /&gt;
In the new scheme, the sum insured is the average of the past seven years &amp;lsquo;threshold&amp;rsquo; yield for the specific crop (excluding calamity years) in the village it is grown, multiplied by the minimum support price (MSP).&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Lower premium&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
In the existing crop insurance schemes, farmers cough up substantial costs for insurance. In the Pradhan Mantri Fasal Bima Yojana, however, the premium outgo will drop substantially. Farmers will have to pay just 2 per cent of the SI for all kharif crops, 1.5 per cent for rabi and 5 per cent for commercial or horticulture crops.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Wider coverage&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
Unlike in the earlier schemes, in the new one, there is greater risk coverage. For instance, there was no cover for risks specific to a region (landslide, inundation) in NAIS. In MNAIS, risk of loss to cyclonic rains was given only to coastal regions.&lt;br /&gt;
&lt;br /&gt;
Under the Pradhan Mantri Fasal Bima Yojana all risks are covered. Post-harvest losses due to cyclonic rain or thunder are covered for farmers across India. Also, unlike in NAIS, the new scheme covers loss due to adverse weather conditions preventing sowing of crops after expenditure has been incurred.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Faster settlement&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
A delayed settlement process for crop loss defeats the very purpose of insurance. The delay in settling claims for existing schemes was sometimes as long as six months to a year. Amit Bhandari, Head &amp;ndash; Health &amp;amp; Agriculture, Underwriting and Claims at ICICI Lombard General Insurance, says, &amp;ldquo;Estimation of yield through manual crop cutting experiments and the time lag in sharing the yield data with insurance companies results in delay in settlement.&amp;rdquo;&lt;br /&gt;
&lt;br /&gt;
To expedite the process, the Centre has directed the use of drones and other satellite-based technology when assessing crop damage and estimating acreage. It has also mandated authorities to use smart phones to capture images of crops to improve the quality of yield data. As the images come with GPS time stamping, the process will be more reliable.&lt;br /&gt;
&lt;br /&gt;
Another leading general insurer says the Centre has now laid down the deadlines clearly. From the number of days within which the State has to give the certified yield data to the insurance company, to the maximum number of days within which the Centre/State has to pay their premium subsidy to the insurer, and the number of days for the insurance company to settle claims &amp;mdash; everything has been put down on paper. &lt;br /&gt;
&lt;/div&gt;&#039;,
	&#039;credit_writer&#039; =&gt; &#039;The Hindu Business Line, 3 April, 2016, http://www.thehindubusinessline.com/portfolio/real-assets/crop-insurance-new-dawn-for-farmers/article8429520.ece&#039;,
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-The Hindu Business Line

The new scheme offers lower premium, more risk cover and hassle-free settlement

Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment...&#039;
$disp = &#039;&lt;div align=&quot;justify&quot;&gt;-The Hindu Business Line&lt;br /&gt;&lt;br /&gt;&lt;em&gt;The new scheme offers lower premium, more risk cover and hassle-free settlement&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment of compensation have kept farmers away from them.&lt;br /&gt;&lt;br /&gt;Given the high risk of crop damage in India, with significant loss in food grain production in 18 of the last 54 years (which is once in every three years as per data from the Commission for Agriculture Costs and Prices), it has become vital to address the flaws in the existing crop insurance schemes &amp;mdash; the National Agriculture Insurance scheme (NAIS) and MNAIS (modified NAIS).&lt;br /&gt;&lt;br /&gt;Out of the total farm land of 195.26 million hectares in the country, only 42.82 million hectares or 22 per cent is insured. It is in this backdrop that the Centre launched the Pradhan Mantri Fasal Bima Yojana in January this year. While the outline of the scheme looks attractive, the success of the plan lies in its implementation.&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Adequate sum insured&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;The main setback with the existing crop insurance schemes is that the sum insured (SI) is too small to make any difference to the farmer. In 2013-14, for instance, while the average per hectare output was worth Rs. 41,442, the sum insured (SI) under various crop insurance schemes was just Rs. 18,464 (kharif - Rs. 19,141 and rabi - Rs. 16,927).&lt;br /&gt;&lt;br /&gt;While the insured sum here looks sufficient to cover the cost of production, it is way less than a farmer&amp;rsquo;s income in a normal season. In MNAIS, the Centre capped the maximum premium that can be paid for a crop. 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So the farmer will be covered for the full Rs. 30,000 and the premium will be paid to the insurer &amp;mdash; Rs. 600 by the farmer and Rs. 6,000 by the State and the Centre (earlier, the farmer paid Rs. 900 and the Centre Rs. 2,400).&lt;br /&gt;&lt;br /&gt;In the new scheme, the sum insured is the average of the past seven years &amp;lsquo;threshold&amp;rsquo; yield for the specific crop (excluding calamity years) in the village it is grown, multiplied by the minimum support price (MSP).&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Lower premium&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;In the existing crop insurance schemes, farmers cough up substantial costs for insurance. In the Pradhan Mantri Fasal Bima Yojana, however, the premium outgo will drop substantially. Farmers will have to pay just 2 per cent of the SI for all kharif crops, 1.5 per cent for rabi and 5 per cent for commercial or horticulture crops.&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Wider coverage&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;Unlike in the earlier schemes, in the new one, there is greater risk coverage. For instance, there was no cover for risks specific to a region (landslide, inundation) in NAIS. In MNAIS, risk of loss to cyclonic rains was given only to coastal regions.&lt;br /&gt;&lt;br /&gt;Under the Pradhan Mantri Fasal Bima Yojana all risks are covered. Post-harvest losses due to cyclonic rain or thunder are covered for farmers across India. Also, unlike in NAIS, the new scheme covers loss due to adverse weather conditions preventing sowing of crops after expenditure has been incurred.&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Faster settlement&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;A delayed settlement process for crop loss defeats the very purpose of insurance. The delay in settling claims for existing schemes was sometimes as long as six months to a year. Amit Bhandari, Head &amp;ndash; Health &amp;amp; Agriculture, Underwriting and Claims at ICICI Lombard General Insurance, says, &amp;ldquo;Estimation of yield through manual crop cutting experiments and the time lag in sharing the yield data with insurance companies results in delay in settlement.&amp;rdquo;&lt;br /&gt;&lt;br /&gt;To expedite the process, the Centre has directed the use of drones and other satellite-based technology when assessing crop damage and estimating acreage. It has also mandated authorities to use smart phones to capture images of crops to improve the quality of yield data. As the images come with GPS time stamping, the process will be more reliable.&lt;br /&gt;&lt;br /&gt;Another leading general insurer says the Centre has now laid down the deadlines clearly. From the number of days within which the State has to give the certified yield data to the insurance company, to the maximum number of days within which the Centre/State has to pay their premium subsidy to the insurer, and the number of days for the insurance company to settle claims &amp;mdash; everything has been put down on paper. &lt;br /&gt;&lt;/div&gt;&#039;
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-The Hindu Business Line

The new scheme offers lower premium, more risk cover and hassle-free settlement

Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment..."/>
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                <strong>Crop insurance: new dawn for farmers? -Rajalakshmi Nirmal</strong></h1>
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                <div align="justify">-The Hindu Business Line<br /><br /><em>The new scheme offers lower premium, more risk cover and hassle-free settlement<br /></em><br />Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment of compensation have kept farmers away from them.<br /><br />Given the high risk of crop damage in India, with significant loss in food grain production in 18 of the last 54 years (which is once in every three years as per data from the Commission for Agriculture Costs and Prices), it has become vital to address the flaws in the existing crop insurance schemes &mdash; the National Agriculture Insurance scheme (NAIS) and MNAIS (modified NAIS).<br /><br />Out of the total farm land of 195.26 million hectares in the country, only 42.82 million hectares or 22 per cent is insured. It is in this backdrop that the Centre launched the Pradhan Mantri Fasal Bima Yojana in January this year. While the outline of the scheme looks attractive, the success of the plan lies in its implementation.<br /><br /><em>Adequate sum insured<br /></em><br />The main setback with the existing crop insurance schemes is that the sum insured (SI) is too small to make any difference to the farmer. In 2013-14, for instance, while the average per hectare output was worth Rs. 41,442, the sum insured (SI) under various crop insurance schemes was just Rs. 18,464 (kharif - Rs. 19,141 and rabi - Rs. 16,927).<br /><br />While the insured sum here looks sufficient to cover the cost of production, it is way less than a farmer&rsquo;s income in a normal season. In MNAIS, the Centre capped the maximum premium that can be paid for a crop. So, in crops where actuarial rates were higher, insurers reduced the sum insured proportionately, says Ashish Agarwal, Head - Agri Business, Bajaj Allianz General Insurance, which covers about 38 lakh farmers under its crop insurance scheme in 2015-16.<br /><br />For instance, suppose in Uttar Pradesh&rsquo;s Lalitpur district, the actuarial premium (based on the assessment of risk by the insurer) was fixed at 22 per cent for paddy, but 11 per cent was the cap on premium fixed by the Centre. So, even if the farmer wanted SI of Rs. 30,000/hectare, he would get cover for only Rs. 15,000 (Rs. 30,000* 11% = Rs. 3,300 = is the maximum amount that can be collected as premium, but the insurer can go only with his actuarial rate, so he will reduce the SI to Rs. 15,000: Rs. 15,000*22% =Rs. 3,300). This, however, will change with the new scheme. Under the Pradhan Mantri Fasal Bima Yojana, there is no cap on premium. So the farmer will be covered for the full Rs. 30,000 and the premium will be paid to the insurer &mdash; Rs. 600 by the farmer and Rs. 6,000 by the State and the Centre (earlier, the farmer paid Rs. 900 and the Centre Rs. 2,400).<br /><br />In the new scheme, the sum insured is the average of the past seven years &lsquo;threshold&rsquo; yield for the specific crop (excluding calamity years) in the village it is grown, multiplied by the minimum support price (MSP).<br /><br /><em>Lower premium<br /></em><br />In the existing crop insurance schemes, farmers cough up substantial costs for insurance. In the Pradhan Mantri Fasal Bima Yojana, however, the premium outgo will drop substantially. Farmers will have to pay just 2 per cent of the SI for all kharif crops, 1.5 per cent for rabi and 5 per cent for commercial or horticulture crops.<br /><br /><em>Wider coverage<br /></em><br />Unlike in the earlier schemes, in the new one, there is greater risk coverage. For instance, there was no cover for risks specific to a region (landslide, inundation) in NAIS. In MNAIS, risk of loss to cyclonic rains was given only to coastal regions.<br /><br />Under the Pradhan Mantri Fasal Bima Yojana all risks are covered. Post-harvest losses due to cyclonic rain or thunder are covered for farmers across India. Also, unlike in NAIS, the new scheme covers loss due to adverse weather conditions preventing sowing of crops after expenditure has been incurred.<br /><br /><em>Faster settlement<br /></em><br />A delayed settlement process for crop loss defeats the very purpose of insurance. The delay in settling claims for existing schemes was sometimes as long as six months to a year. Amit Bhandari, Head &ndash; Health &amp; Agriculture, Underwriting and Claims at ICICI Lombard General Insurance, says, &ldquo;Estimation of yield through manual crop cutting experiments and the time lag in sharing the yield data with insurance companies results in delay in settlement.&rdquo;<br /><br />To expedite the process, the Centre has directed the use of drones and other satellite-based technology when assessing crop damage and estimating acreage. It has also mandated authorities to use smart phones to capture images of crops to improve the quality of yield data. As the images come with GPS time stamping, the process will be more reliable.<br /><br />Another leading general insurer says the Centre has now laid down the deadlines clearly. From the number of days within which the State has to give the certified yield data to the insurance company, to the maximum number of days within which the Centre/State has to pay their premium subsidy to the insurer, and the number of days for the insurance company to settle claims &mdash; everything has been put down on paper. <br /></div>               </font>
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    <link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f7a3ea8aeba-trace').style.display = (document.getElementById('cakeErr67f7a3ea8aeba-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr67f7a3ea8aeba-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f7a3ea8aeba-code').style.display = (document.getElementById('cakeErr67f7a3ea8aeba-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f7a3ea8aeba-context').style.display = (document.getElementById('cakeErr67f7a3ea8aeba-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr67f7a3ea8aeba-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700">&lt;</span><span style="color: #0000BB">head</span><span style="color: #007700">&gt;
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		&#039;title&#039; =&gt; &#039;Crop insurance: new dawn for farmers? -Rajalakshmi Nirmal&#039;,
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-The Hindu Business Line&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;The new scheme offers lower premium, more risk cover and hassle-free settlement&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment of compensation have kept farmers away from them.&lt;br /&gt;
&lt;br /&gt;
Given the high risk of crop damage in India, with significant loss in food grain production in 18 of the last 54 years (which is once in every three years as per data from the Commission for Agriculture Costs and Prices), it has become vital to address the flaws in the existing crop insurance schemes &amp;mdash; the National Agriculture Insurance scheme (NAIS) and MNAIS (modified NAIS).&lt;br /&gt;
&lt;br /&gt;
Out of the total farm land of 195.26 million hectares in the country, only 42.82 million hectares or 22 per cent is insured. It is in this backdrop that the Centre launched the Pradhan Mantri Fasal Bima Yojana in January this year. While the outline of the scheme looks attractive, the success of the plan lies in its implementation.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Adequate sum insured&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The main setback with the existing crop insurance schemes is that the sum insured (SI) is too small to make any difference to the farmer. In 2013-14, for instance, while the average per hectare output was worth Rs. 41,442, the sum insured (SI) under various crop insurance schemes was just Rs. 18,464 (kharif - Rs. 19,141 and rabi - Rs. 16,927).&lt;br /&gt;
&lt;br /&gt;
While the insured sum here looks sufficient to cover the cost of production, it is way less than a farmer&amp;rsquo;s income in a normal season. In MNAIS, the Centre capped the maximum premium that can be paid for a crop. So, in crops where actuarial rates were higher, insurers reduced the sum insured proportionately, says Ashish Agarwal, Head - Agri Business, Bajaj Allianz General Insurance, which covers about 38 lakh farmers under its crop insurance scheme in 2015-16.&lt;br /&gt;
&lt;br /&gt;
For instance, suppose in Uttar Pradesh&amp;rsquo;s Lalitpur district, the actuarial premium (based on the assessment of risk by the insurer) was fixed at 22 per cent for paddy, but 11 per cent was the cap on premium fixed by the Centre. So, even if the farmer wanted SI of Rs. 30,000/hectare, he would get cover for only Rs. 15,000 (Rs. 30,000* 11% = Rs. 3,300 = is the maximum amount that can be collected as premium, but the insurer can go only with his actuarial rate, so he will reduce the SI to Rs. 15,000: Rs. 15,000*22% =Rs. 3,300). This, however, will change with the new scheme. Under the Pradhan Mantri Fasal Bima Yojana, there is no cap on premium. So the farmer will be covered for the full Rs. 30,000 and the premium will be paid to the insurer &amp;mdash; Rs. 600 by the farmer and Rs. 6,000 by the State and the Centre (earlier, the farmer paid Rs. 900 and the Centre Rs. 2,400).&lt;br /&gt;
&lt;br /&gt;
In the new scheme, the sum insured is the average of the past seven years &amp;lsquo;threshold&amp;rsquo; yield for the specific crop (excluding calamity years) in the village it is grown, multiplied by the minimum support price (MSP).&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Lower premium&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
In the existing crop insurance schemes, farmers cough up substantial costs for insurance. In the Pradhan Mantri Fasal Bima Yojana, however, the premium outgo will drop substantially. Farmers will have to pay just 2 per cent of the SI for all kharif crops, 1.5 per cent for rabi and 5 per cent for commercial or horticulture crops.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Wider coverage&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
Unlike in the earlier schemes, in the new one, there is greater risk coverage. For instance, there was no cover for risks specific to a region (landslide, inundation) in NAIS. In MNAIS, risk of loss to cyclonic rains was given only to coastal regions.&lt;br /&gt;
&lt;br /&gt;
Under the Pradhan Mantri Fasal Bima Yojana all risks are covered. Post-harvest losses due to cyclonic rain or thunder are covered for farmers across India. Also, unlike in NAIS, the new scheme covers loss due to adverse weather conditions preventing sowing of crops after expenditure has been incurred.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Faster settlement&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
A delayed settlement process for crop loss defeats the very purpose of insurance. The delay in settling claims for existing schemes was sometimes as long as six months to a year. Amit Bhandari, Head &amp;ndash; Health &amp;amp; Agriculture, Underwriting and Claims at ICICI Lombard General Insurance, says, &amp;ldquo;Estimation of yield through manual crop cutting experiments and the time lag in sharing the yield data with insurance companies results in delay in settlement.&amp;rdquo;&lt;br /&gt;
&lt;br /&gt;
To expedite the process, the Centre has directed the use of drones and other satellite-based technology when assessing crop damage and estimating acreage. It has also mandated authorities to use smart phones to capture images of crops to improve the quality of yield data. As the images come with GPS time stamping, the process will be more reliable.&lt;br /&gt;
&lt;br /&gt;
Another leading general insurer says the Centre has now laid down the deadlines clearly. From the number of days within which the State has to give the certified yield data to the insurance company, to the maximum number of days within which the Centre/State has to pay their premium subsidy to the insurer, and the number of days for the insurance company to settle claims &amp;mdash; everything has been put down on paper. &lt;br /&gt;
&lt;/div&gt;&#039;,
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-The Hindu Business Line

The new scheme offers lower premium, more risk cover and hassle-free settlement

Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;-The Hindu Business Line&lt;br /&gt;&lt;br /&gt;&lt;em&gt;The new scheme offers lower premium, more risk cover and hassle-free settlement&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment of compensation have kept farmers away from them.&lt;br /&gt;&lt;br /&gt;Given the high risk of crop damage in India, with significant loss in food grain production in 18 of the last 54 years (which is once in every three years as per data from the Commission for Agriculture Costs and Prices), it has become vital to address the flaws in the existing crop insurance schemes &amp;mdash; the National Agriculture Insurance scheme (NAIS) and MNAIS (modified NAIS).&lt;br /&gt;&lt;br /&gt;Out of the total farm land of 195.26 million hectares in the country, only 42.82 million hectares or 22 per cent is insured. It is in this backdrop that the Centre launched the Pradhan Mantri Fasal Bima Yojana in January this year. While the outline of the scheme looks attractive, the success of the plan lies in its implementation.&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Adequate sum insured&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;The main setback with the existing crop insurance schemes is that the sum insured (SI) is too small to make any difference to the farmer. In 2013-14, for instance, while the average per hectare output was worth Rs. 41,442, the sum insured (SI) under various crop insurance schemes was just Rs. 18,464 (kharif - Rs. 19,141 and rabi - Rs. 16,927).&lt;br /&gt;&lt;br /&gt;While the insured sum here looks sufficient to cover the cost of production, it is way less than a farmer&amp;rsquo;s income in a normal season. In MNAIS, the Centre capped the maximum premium that can be paid for a crop. So, in crops where actuarial rates were higher, insurers reduced the sum insured proportionately, says Ashish Agarwal, Head - Agri Business, Bajaj Allianz General Insurance, which covers about 38 lakh farmers under its crop insurance scheme in 2015-16.&lt;br /&gt;&lt;br /&gt;For instance, suppose in Uttar Pradesh&amp;rsquo;s Lalitpur district, the actuarial premium (based on the assessment of risk by the insurer) was fixed at 22 per cent for paddy, but 11 per cent was the cap on premium fixed by the Centre. So, even if the farmer wanted SI of Rs. 30,000/hectare, he would get cover for only Rs. 15,000 (Rs. 30,000* 11% = Rs. 3,300 = is the maximum amount that can be collected as premium, but the insurer can go only with his actuarial rate, so he will reduce the SI to Rs. 15,000: Rs. 15,000*22% =Rs. 3,300). This, however, will change with the new scheme. Under the Pradhan Mantri Fasal Bima Yojana, there is no cap on premium. So the farmer will be covered for the full Rs. 30,000 and the premium will be paid to the insurer &amp;mdash; Rs. 600 by the farmer and Rs. 6,000 by the State and the Centre (earlier, the farmer paid Rs. 900 and the Centre Rs. 2,400).&lt;br /&gt;&lt;br /&gt;In the new scheme, the sum insured is the average of the past seven years &amp;lsquo;threshold&amp;rsquo; yield for the specific crop (excluding calamity years) in the village it is grown, multiplied by the minimum support price (MSP).&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Lower premium&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;In the existing crop insurance schemes, farmers cough up substantial costs for insurance. In the Pradhan Mantri Fasal Bima Yojana, however, the premium outgo will drop substantially. Farmers will have to pay just 2 per cent of the SI for all kharif crops, 1.5 per cent for rabi and 5 per cent for commercial or horticulture crops.&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Wider coverage&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;Unlike in the earlier schemes, in the new one, there is greater risk coverage. For instance, there was no cover for risks specific to a region (landslide, inundation) in NAIS. In MNAIS, risk of loss to cyclonic rains was given only to coastal regions.&lt;br /&gt;&lt;br /&gt;Under the Pradhan Mantri Fasal Bima Yojana all risks are covered. Post-harvest losses due to cyclonic rain or thunder are covered for farmers across India. Also, unlike in NAIS, the new scheme covers loss due to adverse weather conditions preventing sowing of crops after expenditure has been incurred.&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Faster settlement&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;A delayed settlement process for crop loss defeats the very purpose of insurance. The delay in settling claims for existing schemes was sometimes as long as six months to a year. Amit Bhandari, Head &amp;ndash; Health &amp;amp; Agriculture, Underwriting and Claims at ICICI Lombard General Insurance, says, &amp;ldquo;Estimation of yield through manual crop cutting experiments and the time lag in sharing the yield data with insurance companies results in delay in settlement.&amp;rdquo;&lt;br /&gt;&lt;br /&gt;To expedite the process, the Centre has directed the use of drones and other satellite-based technology when assessing crop damage and estimating acreage. It has also mandated authorities to use smart phones to capture images of crops to improve the quality of yield data. As the images come with GPS time stamping, the process will be more reliable.&lt;br /&gt;&lt;br /&gt;Another leading general insurer says the Centre has now laid down the deadlines clearly. From the number of days within which the State has to give the certified yield data to the insurance company, to the maximum number of days within which the Centre/State has to pay their premium subsidy to the insurer, and the number of days for the insurance company to settle claims &amp;mdash; everything has been put down on paper. &lt;br /&gt;&lt;/div&gt;&#039;,
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	&#039;title&#039; =&gt; &#039;Crop insurance: new dawn for farmers? -Rajalakshmi Nirmal&#039;,
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-The Hindu Business Line&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;The new scheme offers lower premium, more risk cover and hassle-free settlement&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment of compensation have kept farmers away from them.&lt;br /&gt;
&lt;br /&gt;
Given the high risk of crop damage in India, with significant loss in food grain production in 18 of the last 54 years (which is once in every three years as per data from the Commission for Agriculture Costs and Prices), it has become vital to address the flaws in the existing crop insurance schemes &amp;mdash; the National Agriculture Insurance scheme (NAIS) and MNAIS (modified NAIS).&lt;br /&gt;
&lt;br /&gt;
Out of the total farm land of 195.26 million hectares in the country, only 42.82 million hectares or 22 per cent is insured. It is in this backdrop that the Centre launched the Pradhan Mantri Fasal Bima Yojana in January this year. While the outline of the scheme looks attractive, the success of the plan lies in its implementation.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Adequate sum insured&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
The main setback with the existing crop insurance schemes is that the sum insured (SI) is too small to make any difference to the farmer. In 2013-14, for instance, while the average per hectare output was worth Rs. 41,442, the sum insured (SI) under various crop insurance schemes was just Rs. 18,464 (kharif - Rs. 19,141 and rabi - Rs. 16,927).&lt;br /&gt;
&lt;br /&gt;
While the insured sum here looks sufficient to cover the cost of production, it is way less than a farmer&amp;rsquo;s income in a normal season. In MNAIS, the Centre capped the maximum premium that can be paid for a crop. So, in crops where actuarial rates were higher, insurers reduced the sum insured proportionately, says Ashish Agarwal, Head - Agri Business, Bajaj Allianz General Insurance, which covers about 38 lakh farmers under its crop insurance scheme in 2015-16.&lt;br /&gt;
&lt;br /&gt;
For instance, suppose in Uttar Pradesh&amp;rsquo;s Lalitpur district, the actuarial premium (based on the assessment of risk by the insurer) was fixed at 22 per cent for paddy, but 11 per cent was the cap on premium fixed by the Centre. So, even if the farmer wanted SI of Rs. 30,000/hectare, he would get cover for only Rs. 15,000 (Rs. 30,000* 11% = Rs. 3,300 = is the maximum amount that can be collected as premium, but the insurer can go only with his actuarial rate, so he will reduce the SI to Rs. 15,000: Rs. 15,000*22% =Rs. 3,300). This, however, will change with the new scheme. Under the Pradhan Mantri Fasal Bima Yojana, there is no cap on premium. So the farmer will be covered for the full Rs. 30,000 and the premium will be paid to the insurer &amp;mdash; Rs. 600 by the farmer and Rs. 6,000 by the State and the Centre (earlier, the farmer paid Rs. 900 and the Centre Rs. 2,400).&lt;br /&gt;
&lt;br /&gt;
In the new scheme, the sum insured is the average of the past seven years &amp;lsquo;threshold&amp;rsquo; yield for the specific crop (excluding calamity years) in the village it is grown, multiplied by the minimum support price (MSP).&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Lower premium&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
In the existing crop insurance schemes, farmers cough up substantial costs for insurance. In the Pradhan Mantri Fasal Bima Yojana, however, the premium outgo will drop substantially. Farmers will have to pay just 2 per cent of the SI for all kharif crops, 1.5 per cent for rabi and 5 per cent for commercial or horticulture crops.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Wider coverage&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
Unlike in the earlier schemes, in the new one, there is greater risk coverage. For instance, there was no cover for risks specific to a region (landslide, inundation) in NAIS. In MNAIS, risk of loss to cyclonic rains was given only to coastal regions.&lt;br /&gt;
&lt;br /&gt;
Under the Pradhan Mantri Fasal Bima Yojana all risks are covered. Post-harvest losses due to cyclonic rain or thunder are covered for farmers across India. Also, unlike in NAIS, the new scheme covers loss due to adverse weather conditions preventing sowing of crops after expenditure has been incurred.&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Faster settlement&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
A delayed settlement process for crop loss defeats the very purpose of insurance. The delay in settling claims for existing schemes was sometimes as long as six months to a year. Amit Bhandari, Head &amp;ndash; Health &amp;amp; Agriculture, Underwriting and Claims at ICICI Lombard General Insurance, says, &amp;ldquo;Estimation of yield through manual crop cutting experiments and the time lag in sharing the yield data with insurance companies results in delay in settlement.&amp;rdquo;&lt;br /&gt;
&lt;br /&gt;
To expedite the process, the Centre has directed the use of drones and other satellite-based technology when assessing crop damage and estimating acreage. It has also mandated authorities to use smart phones to capture images of crops to improve the quality of yield data. As the images come with GPS time stamping, the process will be more reliable.&lt;br /&gt;
&lt;br /&gt;
Another leading general insurer says the Centre has now laid down the deadlines clearly. From the number of days within which the State has to give the certified yield data to the insurance company, to the maximum number of days within which the Centre/State has to pay their premium subsidy to the insurer, and the number of days for the insurance company to settle claims &amp;mdash; everything has been put down on paper. &lt;br /&gt;
&lt;/div&gt;&#039;,
	&#039;credit_writer&#039; =&gt; &#039;The Hindu Business Line, 3 April, 2016, http://www.thehindubusinessline.com/portfolio/real-assets/crop-insurance-new-dawn-for-farmers/article8429520.ece&#039;,
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-The Hindu Business Line

The new scheme offers lower premium, more risk cover and hassle-free settlement

Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment...&#039;
$disp = &#039;&lt;div align=&quot;justify&quot;&gt;-The Hindu Business Line&lt;br /&gt;&lt;br /&gt;&lt;em&gt;The new scheme offers lower premium, more risk cover and hassle-free settlement&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment of compensation have kept farmers away from them.&lt;br /&gt;&lt;br /&gt;Given the high risk of crop damage in India, with significant loss in food grain production in 18 of the last 54 years (which is once in every three years as per data from the Commission for Agriculture Costs and Prices), it has become vital to address the flaws in the existing crop insurance schemes &amp;mdash; the National Agriculture Insurance scheme (NAIS) and MNAIS (modified NAIS).&lt;br /&gt;&lt;br /&gt;Out of the total farm land of 195.26 million hectares in the country, only 42.82 million hectares or 22 per cent is insured. It is in this backdrop that the Centre launched the Pradhan Mantri Fasal Bima Yojana in January this year. While the outline of the scheme looks attractive, the success of the plan lies in its implementation.&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Adequate sum insured&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;The main setback with the existing crop insurance schemes is that the sum insured (SI) is too small to make any difference to the farmer. In 2013-14, for instance, while the average per hectare output was worth Rs. 41,442, the sum insured (SI) under various crop insurance schemes was just Rs. 18,464 (kharif - Rs. 19,141 and rabi - Rs. 16,927).&lt;br /&gt;&lt;br /&gt;While the insured sum here looks sufficient to cover the cost of production, it is way less than a farmer&amp;rsquo;s income in a normal season. In MNAIS, the Centre capped the maximum premium that can be paid for a crop. So, in crops where actuarial rates were higher, insurers reduced the sum insured proportionately, says Ashish Agarwal, Head - Agri Business, Bajaj Allianz General Insurance, which covers about 38 lakh farmers under its crop insurance scheme in 2015-16.&lt;br /&gt;&lt;br /&gt;For instance, suppose in Uttar Pradesh&amp;rsquo;s Lalitpur district, the actuarial premium (based on the assessment of risk by the insurer) was fixed at 22 per cent for paddy, but 11 per cent was the cap on premium fixed by the Centre. So, even if the farmer wanted SI of Rs. 30,000/hectare, he would get cover for only Rs. 15,000 (Rs. 30,000* 11% = Rs. 3,300 = is the maximum amount that can be collected as premium, but the insurer can go only with his actuarial rate, so he will reduce the SI to Rs. 15,000: Rs. 15,000*22% =Rs. 3,300). This, however, will change with the new scheme. Under the Pradhan Mantri Fasal Bima Yojana, there is no cap on premium. So the farmer will be covered for the full Rs. 30,000 and the premium will be paid to the insurer &amp;mdash; Rs. 600 by the farmer and Rs. 6,000 by the State and the Centre (earlier, the farmer paid Rs. 900 and the Centre Rs. 2,400).&lt;br /&gt;&lt;br /&gt;In the new scheme, the sum insured is the average of the past seven years &amp;lsquo;threshold&amp;rsquo; yield for the specific crop (excluding calamity years) in the village it is grown, multiplied by the minimum support price (MSP).&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Lower premium&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;In the existing crop insurance schemes, farmers cough up substantial costs for insurance. In the Pradhan Mantri Fasal Bima Yojana, however, the premium outgo will drop substantially. Farmers will have to pay just 2 per cent of the SI for all kharif crops, 1.5 per cent for rabi and 5 per cent for commercial or horticulture crops.&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Wider coverage&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;Unlike in the earlier schemes, in the new one, there is greater risk coverage. For instance, there was no cover for risks specific to a region (landslide, inundation) in NAIS. In MNAIS, risk of loss to cyclonic rains was given only to coastal regions.&lt;br /&gt;&lt;br /&gt;Under the Pradhan Mantri Fasal Bima Yojana all risks are covered. Post-harvest losses due to cyclonic rain or thunder are covered for farmers across India. Also, unlike in NAIS, the new scheme covers loss due to adverse weather conditions preventing sowing of crops after expenditure has been incurred.&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Faster settlement&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;A delayed settlement process for crop loss defeats the very purpose of insurance. The delay in settling claims for existing schemes was sometimes as long as six months to a year. Amit Bhandari, Head &amp;ndash; Health &amp;amp; Agriculture, Underwriting and Claims at ICICI Lombard General Insurance, says, &amp;ldquo;Estimation of yield through manual crop cutting experiments and the time lag in sharing the yield data with insurance companies results in delay in settlement.&amp;rdquo;&lt;br /&gt;&lt;br /&gt;To expedite the process, the Centre has directed the use of drones and other satellite-based technology when assessing crop damage and estimating acreage. It has also mandated authorities to use smart phones to capture images of crops to improve the quality of yield data. As the images come with GPS time stamping, the process will be more reliable.&lt;br /&gt;&lt;br /&gt;Another leading general insurer says the Centre has now laid down the deadlines clearly. From the number of days within which the State has to give the certified yield data to the insurance company, to the maximum number of days within which the Centre/State has to pay their premium subsidy to the insurer, and the number of days for the insurance company to settle claims &amp;mdash; everything has been put down on paper. &lt;br /&gt;&lt;/div&gt;&#039;
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The new scheme offers lower premium, more risk cover and hassle-free settlement

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                <strong>Crop insurance: new dawn for farmers? -Rajalakshmi Nirmal</strong></h1>
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                <div align="justify">-The Hindu Business Line<br /><br /><em>The new scheme offers lower premium, more risk cover and hassle-free settlement<br /></em><br />Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment of compensation have kept farmers away from them.<br /><br />Given the high risk of crop damage in India, with significant loss in food grain production in 18 of the last 54 years (which is once in every three years as per data from the Commission for Agriculture Costs and Prices), it has become vital to address the flaws in the existing crop insurance schemes &mdash; the National Agriculture Insurance scheme (NAIS) and MNAIS (modified NAIS).<br /><br />Out of the total farm land of 195.26 million hectares in the country, only 42.82 million hectares or 22 per cent is insured. It is in this backdrop that the Centre launched the Pradhan Mantri Fasal Bima Yojana in January this year. While the outline of the scheme looks attractive, the success of the plan lies in its implementation.<br /><br /><em>Adequate sum insured<br /></em><br />The main setback with the existing crop insurance schemes is that the sum insured (SI) is too small to make any difference to the farmer. In 2013-14, for instance, while the average per hectare output was worth Rs. 41,442, the sum insured (SI) under various crop insurance schemes was just Rs. 18,464 (kharif - Rs. 19,141 and rabi - Rs. 16,927).<br /><br />While the insured sum here looks sufficient to cover the cost of production, it is way less than a farmer&rsquo;s income in a normal season. In MNAIS, the Centre capped the maximum premium that can be paid for a crop. So, in crops where actuarial rates were higher, insurers reduced the sum insured proportionately, says Ashish Agarwal, Head - Agri Business, Bajaj Allianz General Insurance, which covers about 38 lakh farmers under its crop insurance scheme in 2015-16.<br /><br />For instance, suppose in Uttar Pradesh&rsquo;s Lalitpur district, the actuarial premium (based on the assessment of risk by the insurer) was fixed at 22 per cent for paddy, but 11 per cent was the cap on premium fixed by the Centre. So, even if the farmer wanted SI of Rs. 30,000/hectare, he would get cover for only Rs. 15,000 (Rs. 30,000* 11% = Rs. 3,300 = is the maximum amount that can be collected as premium, but the insurer can go only with his actuarial rate, so he will reduce the SI to Rs. 15,000: Rs. 15,000*22% =Rs. 3,300). This, however, will change with the new scheme. Under the Pradhan Mantri Fasal Bima Yojana, there is no cap on premium. So the farmer will be covered for the full Rs. 30,000 and the premium will be paid to the insurer &mdash; Rs. 600 by the farmer and Rs. 6,000 by the State and the Centre (earlier, the farmer paid Rs. 900 and the Centre Rs. 2,400).<br /><br />In the new scheme, the sum insured is the average of the past seven years &lsquo;threshold&rsquo; yield for the specific crop (excluding calamity years) in the village it is grown, multiplied by the minimum support price (MSP).<br /><br /><em>Lower premium<br /></em><br />In the existing crop insurance schemes, farmers cough up substantial costs for insurance. In the Pradhan Mantri Fasal Bima Yojana, however, the premium outgo will drop substantially. Farmers will have to pay just 2 per cent of the SI for all kharif crops, 1.5 per cent for rabi and 5 per cent for commercial or horticulture crops.<br /><br /><em>Wider coverage<br /></em><br />Unlike in the earlier schemes, in the new one, there is greater risk coverage. For instance, there was no cover for risks specific to a region (landslide, inundation) in NAIS. In MNAIS, risk of loss to cyclonic rains was given only to coastal regions.<br /><br />Under the Pradhan Mantri Fasal Bima Yojana all risks are covered. Post-harvest losses due to cyclonic rain or thunder are covered for farmers across India. Also, unlike in NAIS, the new scheme covers loss due to adverse weather conditions preventing sowing of crops after expenditure has been incurred.<br /><br /><em>Faster settlement<br /></em><br />A delayed settlement process for crop loss defeats the very purpose of insurance. The delay in settling claims for existing schemes was sometimes as long as six months to a year. Amit Bhandari, Head &ndash; Health &amp; Agriculture, Underwriting and Claims at ICICI Lombard General Insurance, says, &ldquo;Estimation of yield through manual crop cutting experiments and the time lag in sharing the yield data with insurance companies results in delay in settlement.&rdquo;<br /><br />To expedite the process, the Centre has directed the use of drones and other satellite-based technology when assessing crop damage and estimating acreage. It has also mandated authorities to use smart phones to capture images of crops to improve the quality of yield data. As the images come with GPS time stamping, the process will be more reliable.<br /><br />Another leading general insurer says the Centre has now laid down the deadlines clearly. From the number of days within which the State has to give the certified yield data to the insurance company, to the maximum number of days within which the Centre/State has to pay their premium subsidy to the insurer, and the number of days for the insurance company to settle claims &mdash; everything has been put down on paper. <br /></div>               </font>
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-The Hindu Business Line<br />
<br />
<em>The new scheme offers lower premium, more risk cover and hassle-free settlement<br />
</em><br />
Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment of compensation have kept farmers away from them.<br />
<br />
Given the high risk of crop damage in India, with significant loss in food grain production in 18 of the last 54 years (which is once in every three years as per data from the Commission for Agriculture Costs and Prices), it has become vital to address the flaws in the existing crop insurance schemes &mdash; the National Agriculture Insurance scheme (NAIS) and MNAIS (modified NAIS).<br />
<br />
Out of the total farm land of 195.26 million hectares in the country, only 42.82 million hectares or 22 per cent is insured. It is in this backdrop that the Centre launched the Pradhan Mantri Fasal Bima Yojana in January this year. While the outline of the scheme looks attractive, the success of the plan lies in its implementation.<br />
<br />
<em>Adequate sum insured<br />
</em><br />
The main setback with the existing crop insurance schemes is that the sum insured (SI) is too small to make any difference to the farmer. In 2013-14, for instance, while the average per hectare output was worth Rs. 41,442, the sum insured (SI) under various crop insurance schemes was just Rs. 18,464 (kharif - Rs. 19,141 and rabi - Rs. 16,927).<br />
<br />
While the insured sum here looks sufficient to cover the cost of production, it is way less than a farmer&rsquo;s income in a normal season. In MNAIS, the Centre capped the maximum premium that can be paid for a crop. So, in crops where actuarial rates were higher, insurers reduced the sum insured proportionately, says Ashish Agarwal, Head - Agri Business, Bajaj Allianz General Insurance, which covers about 38 lakh farmers under its crop insurance scheme in 2015-16.<br />
<br />
For instance, suppose in Uttar Pradesh&rsquo;s Lalitpur district, the actuarial premium (based on the assessment of risk by the insurer) was fixed at 22 per cent for paddy, but 11 per cent was the cap on premium fixed by the Centre. So, even if the farmer wanted SI of Rs. 30,000/hectare, he would get cover for only Rs. 15,000 (Rs. 30,000* 11% = Rs. 3,300 = is the maximum amount that can be collected as premium, but the insurer can go only with his actuarial rate, so he will reduce the SI to Rs. 15,000: Rs. 15,000*22% =Rs. 3,300). This, however, will change with the new scheme. Under the Pradhan Mantri Fasal Bima Yojana, there is no cap on premium. So the farmer will be covered for the full Rs. 30,000 and the premium will be paid to the insurer &mdash; Rs. 600 by the farmer and Rs. 6,000 by the State and the Centre (earlier, the farmer paid Rs. 900 and the Centre Rs. 2,400).<br />
<br />
In the new scheme, the sum insured is the average of the past seven years &lsquo;threshold&rsquo; yield for the specific crop (excluding calamity years) in the village it is grown, multiplied by the minimum support price (MSP).<br />
<br />
<em>Lower premium<br />
</em><br />
In the existing crop insurance schemes, farmers cough up substantial costs for insurance. In the Pradhan Mantri Fasal Bima Yojana, however, the premium outgo will drop substantially. Farmers will have to pay just 2 per cent of the SI for all kharif crops, 1.5 per cent for rabi and 5 per cent for commercial or horticulture crops.<br />
<br />
<em>Wider coverage<br />
</em><br />
Unlike in the earlier schemes, in the new one, there is greater risk coverage. For instance, there was no cover for risks specific to a region (landslide, inundation) in NAIS. In MNAIS, risk of loss to cyclonic rains was given only to coastal regions.<br />
<br />
Under the Pradhan Mantri Fasal Bima Yojana all risks are covered. Post-harvest losses due to cyclonic rain or thunder are covered for farmers across India. Also, unlike in NAIS, the new scheme covers loss due to adverse weather conditions preventing sowing of crops after expenditure has been incurred.<br />
<br />
<em>Faster settlement<br />
</em><br />
A delayed settlement process for crop loss defeats the very purpose of insurance. The delay in settling claims for existing schemes was sometimes as long as six months to a year. Amit Bhandari, Head &ndash; Health &amp; Agriculture, Underwriting and Claims at ICICI Lombard General Insurance, says, &ldquo;Estimation of yield through manual crop cutting experiments and the time lag in sharing the yield data with insurance companies results in delay in settlement.&rdquo;<br />
<br />
To expedite the process, the Centre has directed the use of drones and other satellite-based technology when assessing crop damage and estimating acreage. It has also mandated authorities to use smart phones to capture images of crops to improve the quality of yield data. As the images come with GPS time stamping, the process will be more reliable.<br />
<br />
Another leading general insurer says the Centre has now laid down the deadlines clearly. From the number of days within which the State has to give the certified yield data to the insurance company, to the maximum number of days within which the Centre/State has to pay their premium subsidy to the insurer, and the number of days for the insurance company to settle claims &mdash; everything has been put down on paper. <br />
</div>',
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-The Hindu Business Line

The new scheme offers lower premium, more risk cover and hassle-free settlement

Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment...',
	'disp' => '<div align="justify">-The Hindu Business Line<br /><br /><em>The new scheme offers lower premium, more risk cover and hassle-free settlement<br /></em><br />Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment of compensation have kept farmers away from them.<br /><br />Given the high risk of crop damage in India, with significant loss in food grain production in 18 of the last 54 years (which is once in every three years as per data from the Commission for Agriculture Costs and Prices), it has become vital to address the flaws in the existing crop insurance schemes &mdash; the National Agriculture Insurance scheme (NAIS) and MNAIS (modified NAIS).<br /><br />Out of the total farm land of 195.26 million hectares in the country, only 42.82 million hectares or 22 per cent is insured. It is in this backdrop that the Centre launched the Pradhan Mantri Fasal Bima Yojana in January this year. While the outline of the scheme looks attractive, the success of the plan lies in its implementation.<br /><br /><em>Adequate sum insured<br /></em><br />The main setback with the existing crop insurance schemes is that the sum insured (SI) is too small to make any difference to the farmer. In 2013-14, for instance, while the average per hectare output was worth Rs. 41,442, the sum insured (SI) under various crop insurance schemes was just Rs. 18,464 (kharif - Rs. 19,141 and rabi - Rs. 16,927).<br /><br />While the insured sum here looks sufficient to cover the cost of production, it is way less than a farmer&rsquo;s income in a normal season. In MNAIS, the Centre capped the maximum premium that can be paid for a crop. So, in crops where actuarial rates were higher, insurers reduced the sum insured proportionately, says Ashish Agarwal, Head - Agri Business, Bajaj Allianz General Insurance, which covers about 38 lakh farmers under its crop insurance scheme in 2015-16.<br /><br />For instance, suppose in Uttar Pradesh&rsquo;s Lalitpur district, the actuarial premium (based on the assessment of risk by the insurer) was fixed at 22 per cent for paddy, but 11 per cent was the cap on premium fixed by the Centre. So, even if the farmer wanted SI of Rs. 30,000/hectare, he would get cover for only Rs. 15,000 (Rs. 30,000* 11% = Rs. 3,300 = is the maximum amount that can be collected as premium, but the insurer can go only with his actuarial rate, so he will reduce the SI to Rs. 15,000: Rs. 15,000*22% =Rs. 3,300). This, however, will change with the new scheme. Under the Pradhan Mantri Fasal Bima Yojana, there is no cap on premium. So the farmer will be covered for the full Rs. 30,000 and the premium will be paid to the insurer &mdash; Rs. 600 by the farmer and Rs. 6,000 by the State and the Centre (earlier, the farmer paid Rs. 900 and the Centre Rs. 2,400).<br /><br />In the new scheme, the sum insured is the average of the past seven years &lsquo;threshold&rsquo; yield for the specific crop (excluding calamity years) in the village it is grown, multiplied by the minimum support price (MSP).<br /><br /><em>Lower premium<br /></em><br />In the existing crop insurance schemes, farmers cough up substantial costs for insurance. In the Pradhan Mantri Fasal Bima Yojana, however, the premium outgo will drop substantially. Farmers will have to pay just 2 per cent of the SI for all kharif crops, 1.5 per cent for rabi and 5 per cent for commercial or horticulture crops.<br /><br /><em>Wider coverage<br /></em><br />Unlike in the earlier schemes, in the new one, there is greater risk coverage. For instance, there was no cover for risks specific to a region (landslide, inundation) in NAIS. In MNAIS, risk of loss to cyclonic rains was given only to coastal regions.<br /><br />Under the Pradhan Mantri Fasal Bima Yojana all risks are covered. Post-harvest losses due to cyclonic rain or thunder are covered for farmers across India. Also, unlike in NAIS, the new scheme covers loss due to adverse weather conditions preventing sowing of crops after expenditure has been incurred.<br /><br /><em>Faster settlement<br /></em><br />A delayed settlement process for crop loss defeats the very purpose of insurance. The delay in settling claims for existing schemes was sometimes as long as six months to a year. Amit Bhandari, Head &ndash; Health &amp; Agriculture, Underwriting and Claims at ICICI Lombard General Insurance, says, &ldquo;Estimation of yield through manual crop cutting experiments and the time lag in sharing the yield data with insurance companies results in delay in settlement.&rdquo;<br /><br />To expedite the process, the Centre has directed the use of drones and other satellite-based technology when assessing crop damage and estimating acreage. It has also mandated authorities to use smart phones to capture images of crops to improve the quality of yield data. As the images come with GPS time stamping, the process will be more reliable.<br /><br />Another leading general insurer says the Centre has now laid down the deadlines clearly. From the number of days within which the State has to give the certified yield data to the insurance company, to the maximum number of days within which the Centre/State has to pay their premium subsidy to the insurer, and the number of days for the insurance company to settle claims &mdash; everything has been put down on paper. <br /></div>',
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	'title' => 'Crop insurance: new dawn for farmers? -Rajalakshmi Nirmal',
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-The Hindu Business Line<br />
<br />
<em>The new scheme offers lower premium, more risk cover and hassle-free settlement<br />
</em><br />
Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment of compensation have kept farmers away from them.<br />
<br />
Given the high risk of crop damage in India, with significant loss in food grain production in 18 of the last 54 years (which is once in every three years as per data from the Commission for Agriculture Costs and Prices), it has become vital to address the flaws in the existing crop insurance schemes &mdash; the National Agriculture Insurance scheme (NAIS) and MNAIS (modified NAIS).<br />
<br />
Out of the total farm land of 195.26 million hectares in the country, only 42.82 million hectares or 22 per cent is insured. It is in this backdrop that the Centre launched the Pradhan Mantri Fasal Bima Yojana in January this year. While the outline of the scheme looks attractive, the success of the plan lies in its implementation.<br />
<br />
<em>Adequate sum insured<br />
</em><br />
The main setback with the existing crop insurance schemes is that the sum insured (SI) is too small to make any difference to the farmer. In 2013-14, for instance, while the average per hectare output was worth Rs. 41,442, the sum insured (SI) under various crop insurance schemes was just Rs. 18,464 (kharif - Rs. 19,141 and rabi - Rs. 16,927).<br />
<br />
While the insured sum here looks sufficient to cover the cost of production, it is way less than a farmer&rsquo;s income in a normal season. In MNAIS, the Centre capped the maximum premium that can be paid for a crop. So, in crops where actuarial rates were higher, insurers reduced the sum insured proportionately, says Ashish Agarwal, Head - Agri Business, Bajaj Allianz General Insurance, which covers about 38 lakh farmers under its crop insurance scheme in 2015-16.<br />
<br />
For instance, suppose in Uttar Pradesh&rsquo;s Lalitpur district, the actuarial premium (based on the assessment of risk by the insurer) was fixed at 22 per cent for paddy, but 11 per cent was the cap on premium fixed by the Centre. So, even if the farmer wanted SI of Rs. 30,000/hectare, he would get cover for only Rs. 15,000 (Rs. 30,000* 11% = Rs. 3,300 = is the maximum amount that can be collected as premium, but the insurer can go only with his actuarial rate, so he will reduce the SI to Rs. 15,000: Rs. 15,000*22% =Rs. 3,300). This, however, will change with the new scheme. Under the Pradhan Mantri Fasal Bima Yojana, there is no cap on premium. So the farmer will be covered for the full Rs. 30,000 and the premium will be paid to the insurer &mdash; Rs. 600 by the farmer and Rs. 6,000 by the State and the Centre (earlier, the farmer paid Rs. 900 and the Centre Rs. 2,400).<br />
<br />
In the new scheme, the sum insured is the average of the past seven years &lsquo;threshold&rsquo; yield for the specific crop (excluding calamity years) in the village it is grown, multiplied by the minimum support price (MSP).<br />
<br />
<em>Lower premium<br />
</em><br />
In the existing crop insurance schemes, farmers cough up substantial costs for insurance. In the Pradhan Mantri Fasal Bima Yojana, however, the premium outgo will drop substantially. Farmers will have to pay just 2 per cent of the SI for all kharif crops, 1.5 per cent for rabi and 5 per cent for commercial or horticulture crops.<br />
<br />
<em>Wider coverage<br />
</em><br />
Unlike in the earlier schemes, in the new one, there is greater risk coverage. For instance, there was no cover for risks specific to a region (landslide, inundation) in NAIS. In MNAIS, risk of loss to cyclonic rains was given only to coastal regions.<br />
<br />
Under the Pradhan Mantri Fasal Bima Yojana all risks are covered. Post-harvest losses due to cyclonic rain or thunder are covered for farmers across India. Also, unlike in NAIS, the new scheme covers loss due to adverse weather conditions preventing sowing of crops after expenditure has been incurred.<br />
<br />
<em>Faster settlement<br />
</em><br />
A delayed settlement process for crop loss defeats the very purpose of insurance. The delay in settling claims for existing schemes was sometimes as long as six months to a year. Amit Bhandari, Head &ndash; Health &amp; Agriculture, Underwriting and Claims at ICICI Lombard General Insurance, says, &ldquo;Estimation of yield through manual crop cutting experiments and the time lag in sharing the yield data with insurance companies results in delay in settlement.&rdquo;<br />
<br />
To expedite the process, the Centre has directed the use of drones and other satellite-based technology when assessing crop damage and estimating acreage. It has also mandated authorities to use smart phones to capture images of crops to improve the quality of yield data. As the images come with GPS time stamping, the process will be more reliable.<br />
<br />
Another leading general insurer says the Centre has now laid down the deadlines clearly. From the number of days within which the State has to give the certified yield data to the insurance company, to the maximum number of days within which the Centre/State has to pay their premium subsidy to the insurer, and the number of days for the insurance company to settle claims &mdash; everything has been put down on paper. <br />
</div>',
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-The Hindu Business Line

The new scheme offers lower premium, more risk cover and hassle-free settlement

Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment...'
$disp = '<div align="justify">-The Hindu Business Line<br /><br /><em>The new scheme offers lower premium, more risk cover and hassle-free settlement<br /></em><br />Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment of compensation have kept farmers away from them.<br /><br />Given the high risk of crop damage in India, with significant loss in food grain production in 18 of the last 54 years (which is once in every three years as per data from the Commission for Agriculture Costs and Prices), it has become vital to address the flaws in the existing crop insurance schemes &mdash; the National Agriculture Insurance scheme (NAIS) and MNAIS (modified NAIS).<br /><br />Out of the total farm land of 195.26 million hectares in the country, only 42.82 million hectares or 22 per cent is insured. It is in this backdrop that the Centre launched the Pradhan Mantri Fasal Bima Yojana in January this year. While the outline of the scheme looks attractive, the success of the plan lies in its implementation.<br /><br /><em>Adequate sum insured<br /></em><br />The main setback with the existing crop insurance schemes is that the sum insured (SI) is too small to make any difference to the farmer. In 2013-14, for instance, while the average per hectare output was worth Rs. 41,442, the sum insured (SI) under various crop insurance schemes was just Rs. 18,464 (kharif - Rs. 19,141 and rabi - Rs. 16,927).<br /><br />While the insured sum here looks sufficient to cover the cost of production, it is way less than a farmer&rsquo;s income in a normal season. In MNAIS, the Centre capped the maximum premium that can be paid for a crop. So, in crops where actuarial rates were higher, insurers reduced the sum insured proportionately, says Ashish Agarwal, Head - Agri Business, Bajaj Allianz General Insurance, which covers about 38 lakh farmers under its crop insurance scheme in 2015-16.<br /><br />For instance, suppose in Uttar Pradesh&rsquo;s Lalitpur district, the actuarial premium (based on the assessment of risk by the insurer) was fixed at 22 per cent for paddy, but 11 per cent was the cap on premium fixed by the Centre. So, even if the farmer wanted SI of Rs. 30,000/hectare, he would get cover for only Rs. 15,000 (Rs. 30,000* 11% = Rs. 3,300 = is the maximum amount that can be collected as premium, but the insurer can go only with his actuarial rate, so he will reduce the SI to Rs. 15,000: Rs. 15,000*22% =Rs. 3,300). This, however, will change with the new scheme. Under the Pradhan Mantri Fasal Bima Yojana, there is no cap on premium. So the farmer will be covered for the full Rs. 30,000 and the premium will be paid to the insurer &mdash; Rs. 600 by the farmer and Rs. 6,000 by the State and the Centre (earlier, the farmer paid Rs. 900 and the Centre Rs. 2,400).<br /><br />In the new scheme, the sum insured is the average of the past seven years &lsquo;threshold&rsquo; yield for the specific crop (excluding calamity years) in the village it is grown, multiplied by the minimum support price (MSP).<br /><br /><em>Lower premium<br /></em><br />In the existing crop insurance schemes, farmers cough up substantial costs for insurance. In the Pradhan Mantri Fasal Bima Yojana, however, the premium outgo will drop substantially. Farmers will have to pay just 2 per cent of the SI for all kharif crops, 1.5 per cent for rabi and 5 per cent for commercial or horticulture crops.<br /><br /><em>Wider coverage<br /></em><br />Unlike in the earlier schemes, in the new one, there is greater risk coverage. For instance, there was no cover for risks specific to a region (landslide, inundation) in NAIS. In MNAIS, risk of loss to cyclonic rains was given only to coastal regions.<br /><br />Under the Pradhan Mantri Fasal Bima Yojana all risks are covered. Post-harvest losses due to cyclonic rain or thunder are covered for farmers across India. Also, unlike in NAIS, the new scheme covers loss due to adverse weather conditions preventing sowing of crops after expenditure has been incurred.<br /><br /><em>Faster settlement<br /></em><br />A delayed settlement process for crop loss defeats the very purpose of insurance. The delay in settling claims for existing schemes was sometimes as long as six months to a year. Amit Bhandari, Head &ndash; Health &amp; Agriculture, Underwriting and Claims at ICICI Lombard General Insurance, says, &ldquo;Estimation of yield through manual crop cutting experiments and the time lag in sharing the yield data with insurance companies results in delay in settlement.&rdquo;<br /><br />To expedite the process, the Centre has directed the use of drones and other satellite-based technology when assessing crop damage and estimating acreage. It has also mandated authorities to use smart phones to capture images of crops to improve the quality of yield data. As the images come with GPS time stamping, the process will be more reliable.<br /><br />Another leading general insurer says the Centre has now laid down the deadlines clearly. 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Crop insurance: new dawn for farmers? -Rajalakshmi Nirmal

-The Hindu Business Line The new scheme offers lower premium, more risk cover and hassle-free settlement Crop insurance schemes have not been a hit with Indian farmers in the past. High premia, limited coverage, complicated ways of assessing losses and delayed payment of compensation have kept farmers away from them. Given the high risk of crop damage in India, with significant loss in food grain production in 18 of the last 54 years (which is once in every three years as per data from the Commission for Agriculture Costs and Prices), it has become vital to address the flaws in the existing crop insurance schemes — the National Agriculture Insurance scheme (NAIS) and MNAIS (modified NAIS). Out of the total farm land of 195.26 million hectares in the country, only 42.82 million hectares or 22 per cent is insured. It is in this backdrop that the Centre launched the Pradhan Mantri Fasal Bima Yojana in January this year. While the outline of the scheme looks attractive, the success of the plan lies in its implementation. Adequate sum insured The main setback with the existing crop insurance schemes is that the sum insured (SI) is too small to make any difference to the farmer. In 2013-14, for instance, while the average per hectare output was worth Rs. 41,442, the sum insured (SI) under various crop insurance schemes was just Rs. 18,464 (kharif - Rs. 19,141 and rabi - Rs. 16,927). While the insured sum here looks sufficient to cover the cost of production, it is way less than a farmer’s income in a normal season. In MNAIS, the Centre capped the maximum premium that can be paid for a crop. So, in crops where actuarial rates were higher, insurers reduced the sum insured proportionately, says Ashish Agarwal, Head - Agri Business, Bajaj Allianz General Insurance, which covers about 38 lakh farmers under its crop insurance scheme in 2015-16. For instance, suppose in Uttar Pradesh’s Lalitpur district, the actuarial premium (based on the assessment of risk by the insurer) was fixed at 22 per cent for paddy, but 11 per cent was the cap on premium fixed by the Centre. So, even if the farmer wanted SI of Rs. 30,000/hectare, he would get cover for only Rs. 15,000 (Rs. 30,000* 11% = Rs. 3,300 = is the maximum amount that can be collected as premium, but the insurer can go only with his actuarial rate, so he will reduce the SI to Rs. 15,000: Rs. 15,000*22% =Rs. 3,300). This, however, will change with the new scheme. Under the Pradhan Mantri Fasal Bima Yojana, there is no cap on premium. So the farmer will be covered for the full Rs. 30,000 and the premium will be paid to the insurer — Rs. 600 by the farmer and Rs. 6,000 by the State and the Centre (earlier, the farmer paid Rs. 900 and the Centre Rs. 2,400). In the new scheme, the sum insured is the average of the past seven years ‘threshold’ yield for the specific crop (excluding calamity years) in the village it is grown, multiplied by the minimum support price (MSP). Lower premium In the existing crop insurance schemes, farmers cough up substantial costs for insurance. In the Pradhan Mantri Fasal Bima Yojana, however, the premium outgo will drop substantially. Farmers will have to pay just 2 per cent of the SI for all kharif crops, 1.5 per cent for rabi and 5 per cent for commercial or horticulture crops. Wider coverage Unlike in the earlier schemes, in the new one, there is greater risk coverage. For instance, there was no cover for risks specific to a region (landslide, inundation) in NAIS. In MNAIS, risk of loss to cyclonic rains was given only to coastal regions. Under the Pradhan Mantri Fasal Bima Yojana all risks are covered. Post-harvest losses due to cyclonic rain or thunder are covered for farmers across India. Also, unlike in NAIS, the new scheme covers loss due to adverse weather conditions preventing sowing of crops after expenditure has been incurred. Faster settlement A delayed settlement process for crop loss defeats the very purpose of insurance. The delay in settling claims for existing schemes was sometimes as long as six months to a year. Amit Bhandari, Head – Health & Agriculture, Underwriting and Claims at ICICI Lombard General Insurance, says, “Estimation of yield through manual crop cutting experiments and the time lag in sharing the yield data with insurance companies results in delay in settlement.” To expedite the process, the Centre has directed the use of drones and other satellite-based technology when assessing crop damage and estimating acreage. It has also mandated authorities to use smart phones to capture images of crops to improve the quality of yield data. As the images come with GPS time stamping, the process will be more reliable. Another leading general insurer says the Centre has now laid down the deadlines clearly. From the number of days within which the State has to give the certified yield data to the insurance company, to the maximum number of days within which the Centre/State has to pay their premium subsidy to the insurer, and the number of days for the insurance company to settle claims — everything has been put down on paper.