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1. OBJECTIVES of Crop Insurance:

  •  To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests & diseases.
  • To stabilise the income of farmers to ensure their continuance in farming.
  • To encourage farmers to adopt innovative and modern agricultural practices.
  • To ensure flow of credit to the agriculture sector.


The Scheme shall be implemented through a multi-agency framework by selected insurance companies under the overall guidance & control of the Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW), Ministry of Agriculture & Farmers Welfare (MoA&FW), Government of India (GOI) and the concerned State in co-ordination with various other agencies; viz Financial Institutions like Commercial Banks, Co-operative Banks, Regional Rural Banks and their regulatory bodies, Government Departments viz. Agriculture, Co-operation, Horticulture, Statistics, Revenue, Information/Science & Technology, Panchayati Raj etc.

3. DAC&FW has designated/empanelled Agriculture Insurance Company of India(AIC) and some private insurance companies presently

to participate in the Government sponsored agriculture /crop insurance schemes based on their financial strength, infrastructure, manpower and expertise etc.

The empanelled private insurance companies at present are

1) ICICI-Lombard General Insurance Company Ltd.

2) HDFC-ERGO General Insurance Company Ltd.

3) IFFCO-TokioGeneral Insurance Company Ltd.

4) Cholamandalam MS General InsuranceCompany Ltd.

5) Bajaj Allianz General Insurance Company Ltd.

6) Reliance General Insurance Company Ltd.

7) Future Generali India Insurance Company Ltd.

8) Tata-AIG General Insurance Company Ltd.

9) SBI General Insurance Company Ltd.

10) Universal Sompo General Insurance Company Ltd.

The selection of insurance company from amongst the empanelled insurance companies to act as IA shall be done by the concerned State Government for implementation of the scheme in their State. Such selection of IA shall be done from amongst the designated / empanelled companies which shall be be initially pre-qualified, strictly on the basis of, experience, existence of infrastructure in the area and quality of services like coverage of farmers & area, pay-outs in terms of quantum & timely settlement thereof, willingness to do publicity & awareness campaigns etc. The final selection of IA from amongst the pre-qualified insurance companies shall be done based on the lowest weighted premium quoted by a pre-qualified company for all notified crops within the cluster of districts


The existing State Level Co-ordination Committee on Crop Insurance (SLCCCI), Sub- Committee to SLCCCI, District Level Monitoring Committee (DLMC) already overseeing the implementation & monitoring of the ongoing crop insurance schemes like National Agricultural Insurance Scheme (NAIS), Weather Based Crop Insurance Scheme(WBCIS), Modified National Agricultural Insurance Scheme(MNAIS) and Coconut Palm Insurance Scheme(CPIS) shall be responsible for proper management of the Scheme. IA shall be an active member of SLCCCI and District Level Monitoring Committee (DLMC) of the scheme.


The Scheme shall be implemented on an ‘Area Approach basis’ i.e., Defined Areas for each notified crop for widespread calamities with the assumption that all the insured farmers, in a Unit of Insurance, to be defined as „Notified Area‟ for a crop, face similar risk exposures, incur to a large extent, identical cost of production perhectare, earn comparable farm income per hectare, and experience similar extent of crop loss due to the operation of an insured peril, in the notified area.

Defined Area (i.e., unit area of insurance) is Village/Village Panchayat level by whatsoever name these areas may be called for major crops and for other crops it may be a unit of size above the level of Village/Village Panchayat.

In due course of time, the Unit of Insurance can be a Geo-Fenced/Geo-mappedregion having homogenous Risk Profile for the notified crop.

For Risks of Localised calamities and Post-Harvest losses on account of defined peril, the Unit of Insurance for loss assessment shall be the affected insured field of the individual farmer.


6.1. CROPS: The Scheme can cover all the Crops for which past yield data is available and grown during the notified season, in a Notified Area and for which yield estimation at the Notified Area level will be available based on requisite number of Crop Cutting Experiments (CCEs) being a part of the General Crop Estimation Survey (GCES).

6.2. NOTIFIED AREA: Notified Area is the Unit of Insurance decided by the State Govt. for notifying a Crop during a season. The size of the Unit of Insurance shall depend on the area under cultivation within the unit. For major crops, the Unit of

Insurance shall ordinarily be Village/Village Panchayat level and for minor crops may be at a higher level so that the requisite number of CCEs could be conducted during the notified crop season. States may notify Village / Village Panchayat as insurance unit in case of minor crops too if they so desire.


All farmers growing notified crops in a notified areaduring the season who have insurable interest in the crop are eligible.

7.1. COMPULSORY COVERAGE: The enrolment under the scheme, subject to possession of insurable interest on the cultivation of the notified crop in the notified area, shall be compulsory for following categories of farmers:

7.1.1. Farmers in the notified area who possess a Crop Loan account/KCC account(called as Loanee Farmers) to whom credit limit is sanctioned/renewed for the notified crop during the crop season.


7.1.2. Such other farmers whom the Government may decide to include from time to time.

7.2. VOLUNTARY COVERAGE: Voluntary coverage may be obtained by all farmers not covered in 7.1 above, including Crop KCC/Crop Loan Account holders whose credit limit is not renewed.


8.1. RISKS: Following risks leading to crop loss are to be covered under the scheme:-

8.1.1.YIELD LOSSES (standing crops, on notified area basis): Comprehensiverisk insurance is provided to cover yield losses due to non-preventable risks, such as

(i)Natural Fire and Lightning

(ii)Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado etc.

(iii)Flood, Inundation and Landslide

(iv)Drought, Dry spells

(v)Pests/ Diseases etc.

8.1.2. PREVENTED SOWING (on notified area basis):- In cases where majority of the insured farmers of a notified area, having intent to sow/plant and incurred expenditure for the purpose, are prevented from sowing/planting the insured crop due to adverse weather conditions, shall be eligible for indemnity claims upto a maximum of 25% of the sum-insured.

8.1.3. POST-HARVEST LOSSES (individual farm basis): Coverage is available upto a maximum period of 14 days from harvesting for those crops which are kept in “cut & spread” condition to dry in the field after harvesting, against specific perils of cyclone / cyclonic rains, unseasonal rains throughout the country.

8.1.4. LOCALISED CALAMITIES (individual farm basis): Loss / damage resulting from occurrence of identified localized risks i.e. hailstorm, landslide, and Inundation affecting isolated farms in the notified area.

8.2. EXCLUSIONS: Risks and Losses arising out of following perils shall be excluded:-

War & kindred perils, nuclear risks, riots, malicious damage, theft, act of enmity, grazed and/or destroyed by domestic and/or wild animals, In case of Post–Harvest losses the harvested crop bundled and heaped at a place before threshing, other preventable risks.


In case of Loanee farmers under Compulsory Component, the Sum Insured would be equal to Scale of Finance for that crop as fixed by District Level Technical Committee (DLTC) which may extend up to the value of the threshold yield of the insured crop at the option of insured farmer. Where value of the threshold yield is lower than the Scale of Finance, higher amount shall be the Sum Insured. Multiplying the Notional Threshold Yield with the Minimum Support Price (MSP) of the current year arrives at the value of sum insured. Wherever Current year‟s MSP is not available,

MSP of previous year shall be adopted. The crops for which, MSP is not declared, farmgate price established by the marketing department / board shall be adopted.

Further, in case of Loanee farmers, the Insurance Charges payable by the farmers shall be financed by loan disbursing office of the Bank, and will be treated as additional component to the Scale of Finance for the purpose of obtaining loan.

For farmers covered on voluntary basis the sum-insured is upto the value of Threshold yield i.e threshold yield x (MSP or gate price) of the insured crop.


10.1 The Actuarial Premium Rate (APR) would be charged under PMFBY by IA. DAC&FW/States will monitor the premium rates considering the basis of Loss Cost (LC) i.e. Claims as % of Sum Insured (SI) observed in case of the notified crop(s) in notified unit area of insurance (whatsoever may be the level of unit area) during the preceding 10 similar crop seasons (Kharif/ Rabi) and loading for the expenses towards management including capital cost and insurer’s margin and taking into account non-parametric risks and reduction in insurance unit size etc.. The rate of Insurance Charges payable by the farmer will be as per the following table:

  1. No.
Season Crop Maximum Insurance Charges payable by farmer (% of Sum Insured)
1 Kharif Food & Oilseeds crops (all cereals, millets, & oilseeds, pulses) 2.0% of SI or Actuarial rate, whichever is less
2 Rabi Food & Oilseeds crops (all cereals, millets, & oilseeds, pulses) 1.5% of SI or Actuarial rate, whichever is less
3 Kharif& Rabi Annual Commercial / Annual Horticultural crops 5% of SI or Actuarial rate, whichever is less

10.2 The difference between premium rate and the rate of Insurance charges payable by farmers shall be treated as Rate of Normal Premium Subsidy, which shall be shared equally by the Centre and State.

10.3 AIC shall calculate LC premium rates (till an Independent Agency/TSU takes over) based on latest available yield data in month of February for Kharif crops and August for Rabi crops as per requirement of the States and shall provide to DAC&FW/Concerned States before invitation for premium bidding.

10.4 State Govt. would invite all the empanelled insurance companies to quote their actuarial premium rates for the notified crop(s) in the notified insurance unit area, Indemnity Level, Threshold Yields, Sum Insured etc. as indicated by the State for the season.

10.5 For more effective implementation, selection of Implementing Agency (IA) may be made through adopting the cluster approach under which bunch of about15-20 good & bad districts / areas with reference to risks will be bid out. This will facilitate the uniform distribution of the risks among the participating insurance companies and will avoid selection of districts / areas according to company’s choice. In case of smaller States, the whole State shall be assigned to one IA. This is also expected to take care of districts which have traditionally had high actuarial premiums for crops due to high risk. Selection of IA may be made for at least 3 years.

10.6 The designated / empanelled companies participating in bidding have to bid the premium rates for all the crops notified / to be notified by the State Govt. andnon-compliance will lead to rejection of company‟s bid.

10.7 The insurance coverage in terms of number of farmers & hectare-age should be at least at the previous season’s level.


Risk will be shared by IA and the Government as follows:

The liability of the Insurance companies in case of catastrophic losses computed at the National level for an agricultural crop season, shall be upto 350% of total premium collected (farmer share plus Govt. subsidy) or 35% of total Sum Insured (SI), of all the Insurance Companies combined, whichever is higher. The losses at the National level in a crop season beyond this ceiling shall be met by equal contribution (i.e. on 50:50 basis) from the Central Government and the concerned State Governments.


The State/UT Govt. will plan and conduct the requisite number of Crop Cutting Experiments (CCEs) for all notified crops in the notified insurance units in order to assess the crop yield. The State / UT Govt. will maintain single series of Crop Cutting Experiments (CCEs) and resultant Yield estimates, both for Crop Production estimates and Crop Insurance.

Crop Cutting Experiments (CCE) shall be undertaken per unit area /per crop, on a sliding scale, as indicated below:

S. No. INSURANCE UNIT Minimum no. of CCEs required to be done





Taluka / Tehsil / Block



Mandal/Hobli/ Phirka / Revenue Circle



Village / GramPanchayat/Patwar- Mandal/Patwari-Halka

4 for major crops, 8 for other crops

However, a Technical Advisory Committee (TAC) comprising representatives from Indian Agricultural Statistical Research Institute (IASRI), National Sample Survey Organization (NSSO), Ministry of Agriculture & Farmers Welfare (GoI) and implementing agencies shall dispose/decide the issues relating to CCEs and all other technical matters. Inputs from RST/satellite imagery would also be utilized in optimizing the sample size of CCEs.

Use of Mobile Phone Technology to improve Yield-data Quality & Timeliness

It has been felt that process of CCEs currently being conducted for estimating yield is lacking in reliability and speed which affects the claims settlement. There is a need to have good quality, timely and reliable yield-data. For addressing this problem, video/image capture of crop growth at various stages and transmission thereof with CCE data on a real time basis utilizing mobile communication technology with GPS time stamping, can improve data quality, / timeliness and support timely claim processing and payments. States and insurance companies shall utilise this technology for the purpose.

The cost of using technology etc. for conduct of CCEs etc will be shared between Central Government and State/U.T. Governments on 50:50 basis, wherever necessary, subject to a cap on total funds to be made available by Central Government for this purpose based on approximate cost of procuring hand held devices/Smart phones and other related costs.


13.1. Three levels of Indemnity, viz., 70%, 80% and 90% corresponding to crop Risk in the areas shall be available for all crops.

13.2. The Threshold Yield (TY)shall be the benchmark yield level at which Insurance protection shall be given to all the insured farmers in an Insurance Unit.

13.3. The Threshold Yield for a crop in an Insurance Unit shall be based on average yield of last seven years excluding two years of declared calamity if any, multiplied by the level of indemnity of the area.

                                                            Sum [ Last 7 Years of Yeild

                                                (minus two notified calamity years if any)]

            Threshold Yeild = ———————————————————-  X Level of Indeminity

                                                            5-7 (as the case maybe)


The time-lines for coverage, submission of yield data, price data etc. shall be decided by the SLCCCI strictly keeping in mind the onset of monsoon, sowing period, crop cycle etc.

The seasonality discipline shall be same for loanee and non-loanee farmers.

The cut-off date is uniform for both loanee and non-loanee cultivators. Keeping in view the prevailing agro-climatic conditions, rainfall distribution/irrigation water availabilities, sowing pattern etc. the SLCCCI, in consultation with the insurance company shall fix seasonality disciplines of the coverage and other activities in such a way that it doesn‟t encourage adverse selection or moral hazards. Broad seasonality discipline is given in the chart below. State wise details of seasonality will be provided in the Operational Guidelines to be issued by DAC&FW.

  1. No.
Activity Kharif Rabi
1 Issuance of Administrative Instructions by Government of India February August
2 Conduct of SLCCCI meeting to decide for notification of Crops and Notified areas, limits of Sum Insured and adoption of Level of Indemnity etc. March September
3 Loaning period (loan sanctioned) for Loanee farmers covered on Compulsory basis April to July October to December
4 Cut-off date for receipt of Proposals of farmers (loanee& non-loanee). 31th July 31st December
5 Cut-off date for receipt of Declarations of Loanee farmers covered on compulsory basis & non-loanee farmers covered on Voluntary basis from Bank branches to RespectiveNodal Offices. Within 15 working days of for loanee farmers and seven working days for non-loanee farmers after cut-off date Within 15 working days of for loanee farmers and seven working days for non-loanee farmers after cut-off date
6 Cut-off date for receipt of Declarations of farmers covered on Voluntary basis from designated Insurance Agent(s) to Insurance Companies Within two working days after receiving declaration/premium Within two working days after receiving declaration/premium
7 Cut-off date for receipt of Declarations of Loanee farmers covered on compulsory basis & non-loanee farmers covered on Voluntry basis fromRespective Nodal offices of Banks to Insurance Company Within seven working days from receipt of Declarations by Respective Nodal offices of Banks Within seven working days from receipt of Declarations by Respective Nodal offices of Banks
8 Cut-off date for receipt of yield data Within a month from final harvest Within a month from final harvest


15.1. Yield losses at Notified Area level: Once the Yield Data is received from the State/UT Govt. as per the prescribed cut-off dates, claims will be processed,approved and settled by IA.

15.1.1. If the „Actual Yield‟ (AY) per hectare of the insured crop for the defined area [on the basis of requisite number of Crop Cutting Experiments (CCEs)] in the insured season, falls short of the specified threshold yield(TY) Yield‟ (RY), all the insured farmers growing that crop in the defined area are deemed to have suffered shortfall in their yield.

15.1.2. The Scheme seeks to provide protection against such contingency to all insured farmers of an Insurance Unit.

15.1.3. Claim Pay-outs based on Yield losses shall be calculated as per the following formula:

                                 Shortfall in Yield

Claims Payout = ——————————  X Sum Insured

                              Threshold Yield


Shortfall in Yield = (Threshold Yield – Actual Yield)

15.2. Assessment of prevented Sowing: The adverse weather conditions shall be defined in the notification and shall be captured by notified weather station/s in the District. The extent of claims payable will be decided on the basis of weather data recorded at the notified weather station/s for the purpose. The crop-wise scale of payment, upto a maximum of 25% of Sum Insured shall be worked out by IA based on a notified pay-out structure on the occurrence of pre-declared events such as month-wisedeficit in aggregate rainfall during a specified period assessed through Reference Weather Stations tagged for the Notified / Group of Notified Area. The insurance coverage shall cease to operate for the crop in the notified area. The cover is available during Kharif season for recognised rain-fed areas and crops. The data provider will be notified by the SLCCCI.

15.3. Localized Calamity Loss Assessment:

15.3.1. Loss assessment and modified indemnity procedures in case of occurrence of localized perils, such as hailstorm, landslide, flood, and inundation shall be for a cluster of affected farms or affected village and the settlement of claims, if any, will be each insured farmer covered under assessment.

15.3.2. The District Administration will assist IA in assessing the extent of loss.

15.4. Post-Harvest Loss Assessment:

15.4.1. Loss assessment and indemnity procedures in case of occurrence of Post- Harvest Loss shall be for a cluster of affected farms or affected village and the settlement of claims, if any, will be each insured farmer covered under assessment.

15.4.2. The District Administration will assist IA in assessing the extent of loss.

15.5. On-Account Payment of Claims due to Mid-Season Adversity:

15.5.1. In case of adverse seasonal conditions during crop season viz. floods, prolonged dry spells, severe drought, unseasonal rains, IA in consultation with concerned State Government/UT based on agro meteorological data/ satellite imagery or any other proxy indicator will decide about crops/ areas for which on account payment will be made, not exceeding 25% of likely claims.

15.5.2. Appraisal of mid-season adversity and quantum of on-account payment will be established jointly by Government of India/concerned State Government/UT and IA.

15.5.3. On account payment will be implemented only in those districts/notified areas where such proxy indicators can be established and will be considered for payment and only if the expected yield during the season is likely to be less than 50% of normal yield.

15.6. IA shall process the claims liability assessed as per above mentioned methodology and approve the claims.


16.1. For coverage through Banks:-The claim amount along with particulars will be released to the individual Nodal Banks. The Banks at the grass-root level, in turn, shall credit the accounts of the individual farmers and display the particulars of beneficiaries on their notice board. The Banks shall provide individual farmer wise details claim credit details to IA and shall be incorporated in the centralised data repository.

16.2. For coverage through other insurance intermediaries: The claim amount will be released electronically to the individual Insured Bank Account.

Acreage discrepancy

Some areas in the past have reported excess insurance coverage vis-à-vis planted acreage, leading to „over‟ insurance. Ideally the discrepancy should be handled at farm level to protect the interest of farmers with genuine insurance coverage. However, in the absence of digitized farm records on a GIS platform, it would be cumbersome to physically verify each farm. For the time-being, it is to be addressed as follows:

  • Wherever the ‘acreage discrepancy’ is likely, the acreage insured at IU level shall be compared with average planted acreage of past three years, and the difference will be treated as ‘excess’ insurance coverage.
  • Sum insured may be scaled down in the ratio the average of three years’ actual planted acreage bears to the insured acreage for the given crop.
  • Claims shall be calculated on the scaled down sum insured
  • Premium shall be retained by the insurance company for the portion of sum insured scaled down.

Once the individual farms (plots / survey numbers) are digitized and available on a GIS platform, it is possible to overlay the crop cover as derived using satellite imagery on the GIS platform to identify the crop and estimate the cropped area on each farm. This should lead to identifying the acreage discrepancy at individual farm level.


17.1. Government of India shall issue operational guidelines and modalities, which may be appended from time to time, for implementation of the scheme provisions with detailed steps and processes involved, terms and condition applicable, roles and responsibilities of various agencies involved in execution of the scheme and roles and responsibilities of other related stakeholders.

17.2. These operational modalities shall be considered as part of the scheme.

17.3. The scheme may be reviewed periodically and additions, deletions and modifications of the provisions may be done as deemed necessary.

17.4. During each crop season, the agricultural situation will be closely monitored in the implementing States / Union Territories. The State / UT Department of Agriculture and district administration shall set up a District Level Monitoring Committee (DLMC), who will provide fortnightly reports of Agricultural situation with details of area sown, seasonal weather conditions, pest incidence, stage of crop failure (if any) etc.

17.5. The operation of the Scheme will be reviewed annually, and modifications as may be required would be introduced. Periodic Appraisal Reports on the Scheme would be prepared by Ministry of Agriculture, the Government of India / Implementing Agency.


18.1. Adequate publicity needs to be given in all the villages of the notified districts/ areas. All possible means of electronic and print media, farmer‟s fair, exhibitions including SMS messages, short films, and documentaries shall be utilized to create anddisseminate awareness, benefits and limitations of the Scheme among the cultivators and the agencies involved in implementing the Scheme. Agriculture/Cooperation Department of the States in consultation with IA shall work out appropriate Plan for adequate awareness and publicity three months prior to the start of coverage period.

18.2. IA shall also assist the State Government/ UT in capacity building for effective implementation of the scheme and organize training workshops/sensitization programme for various stakeholders.


19.1. PMFBY is a replacement scheme of NAIS / MNAIS, and hence exempted from Service Tax liability of all the services involved in the implementation of the scheme.


DAC&FW shall carry out pilots in select areas, in collaboration with various States/UTs, national and international research organisations / institutes, IMD, insurance companies, reinsurers etc. to make use of available technology in the fields of remote sensing, aerial imagery, satellites etc. that can help in acreage estimation, crop health / loss estimation, quicker yield estimation etc. with reduced manpower & infrastructure. With development of number of satellites with high resolution images orbiting the Earth, there have been great improvements in satellite imagery products. It has been reasonably proven the satellite imagery can help in demarcating the cropped areas into clusters on the basis of crop health. This feature can be successfully used to target the CCEs within the Insurance Unit (IU). Thus satellite imagery can help in ‘smart sampling’ of CCEs. While an IU with heterogeneous crop health may need standard sample of CCEs, for eg. 4 CCEs per Village / Village Panchayat for major crops, the more homogenous IU may need a lower sample size, say 2 CCEs. This is expected to minimize the total CCEs needed by about 30-40%. States should progressively adopt this technique in generating yield estimates.

After proven strong correlation between RST / Satellite Imageries results and yield estimates through CCEs, States may use the technologies in estimating the crop yields at IU level, subject to the satisfaction of Central and State Governments and insurance companies with the accuracy of the yield estimates to service the claims.

20.1. The integrity of CCEs will be verified by use of GPRS enabled Mobile phones with cameras/smart phones. These phones will also help in addressing the problem of area discrepancy by capturing pictures of standing crops and will also help in quicker, accurate estimation of yields.

20.2. Such technologies, after due consideration of pilot results by the Government shall be included in the Scheme.

20.3. All state government shall use technology initiatives in the conduct and supervision of CCEs to provide the yield data with minimum delay to IA for quick processing of the claims. The state governments shall also use technology initiatives in the reporting of loss reports for on-account claim settlement, Claim intimations for Localized calamity and Post-Harvest losses.

20.4. A centralized repository shall be maintained. Appropriate application (web based, app based etc.) would be developed by NIC. The State Government, IA, Banks, Insurance Intermediaries shall use this applications for inputting various operational data like notification related data, individual farmer wise insurance coverage and claims details, crop loss details etc.


State Governments will review the performance of the scheme after one year and point out corrections, if any, required in any of the provisions of the scheme to Govt. of India.

Weather Based Crop Insurance Scheme (WBCIS)

The structure of farmer’s premium under WBCIS will be at par with the proposed PMFBY. Also, the Criteria of selection of Implementing Agency and area allocation will be same as PMFBY.

Existing Premium Subsidy Structure

S. No. Premium Slab Subsidy by Central and State Government on 50 : 50 basis and premium payable by farmer
1 Upto 2% No Subsidy
2 >2-5% 25% subsidy subject to minimum net premium of 2% payable by farmer
3 > 5 – 8% 40% subsidy subject to minimum net premium of 3.75% payable by farmer
4 > 8% 50% subsidy subject to minimum net premium of 4.8% and maximum net premium of 6% payable by farmers

Revised Premium Subsidy Structure

The rate of Insurance Charges payable by the farmer will be as per the following table:

S. No. Season Crop Maximum Insurance Charges payable by farmer (% of Sum Insured)
1 Kharif Food & Oilseeds crops (all cereals, millets, & oilseeds, pulses) 2.0% of SI or Actuarial rate, whichever is less
2 Rabi Food & Oilseeds crops (all cereals, millets, & oilseeds, pulses) 1.5% of SI or Actuarial rate, whichever is less
3 Kharif& Rabi Annual Commercial / Annual Horticultural crops 5% of SI or Actuarial rate, whichever is less

Unified Package Insurance Scheme (UPIS)

1. Nature of the Scheme:

1.1 Unified Package Insurance Scheme aims at providing financial protection to citizens associated in agriculture sector, thereby ensuring food security, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting farmers from financial risks.

The cover will be for one full year except for Crop Insurance (which will be bi-annual separately for Kharif and Rabi seasons) renewable from year to year. The scheme would be offered / administered through AIC & empanelled General Insurance Companies willing to offer the product on similar terms with necessary approvals and allocation of area on pilot basis.

The Loanee farmers will be covered through Banks/Financial Institutions whereas non-loanee farmer shall be covered through banks and/or insurance intermediaries.


  1. This policy is designed to take care of the insurance needs of farmers associated with agriculture activities. This policy provides yield based crop insurance to the farmer based on his ownership rights of land and sown crop.
  2. It covers both the personal assets of the farmer like the dwelling & its contents (Fire), the other assets which help him in earning his livelihood such as Agricultural Pump Sets, and Agriculture Tractor owned by farmer.
  3. The policy also provides protection to farmer and his/her family members in case of the Accidental Death / Disablement, accidental insurance protection of farmer‟s school/college going children and provisioning of education fee to the students in case of death of parent.
  4. Life insurance protection to the farmer and his/her family members.
  5. The policy will be issued for a period up to 1 year.

Salient Features and Benefits

  1. The farmers package policy will be underwritten by the General Insurance Companies empanelled by DAC&FW under crop insurance programmes and/or designated by this Department or through GIC Companies having tie-up with concerned F.I./Banks for non-crop sections of the policy.
  2. The policy contains 7 Sections. Crop Insurance is mandatory. However, farmers have to choose at least two other sections also to avail the applicable subsidy under crop insurance section.
  3. In case of crop insurance, applicable Farmer‟s share of premium ranging between 1.5% to 5% based on their insured crops is payable by farmer & in case Actuarial premium is more, the Government will provide subsidy equivalent to the difference between Actuarial premium and premium paid by farmer. The crop insurance is based on area approach whereas all other sections are on individual basis.
  4. If the farmers already availed any insurance policy of similar nature and sum insured not less than as mentioned in the policy than they would be exempted from taking such section(s). However details of such policy would be provided in their proposal form.
  5. The rates above are indicative & subject to the concurrence of the insurers.
  6. Sum Insured and premium rates are provisionally taken and may change according to the risk(s).
  7. The detailed section wise tentative sum insured and applicable premium for the farmer(s) are in the proposal forms enclosed at Annexure-I
  8. The above premium rates are without service tax which is likely to be exempted.


The Section – wise details of the scheme are as under:


CROP INSURANCE :-  PMFBY/WBCIS/ – State can choose any of these two



The indemnity under this section is based on declared sum insured basis (first loss basis)

The Company will indemnify the Insured in respect of loss of or damage to the Contents/Buildings whilst contained in the insured premises by:

  • Fire, Lighting, Explosion of gas in domestic appliances,
  • Bursting and overflowing of water tanks, apparatus or pipes,
  • Aircraft or articles dropped therefrom,
  • Riot, Strike, or Malicious Act,
  • Earthquake, (Fire and / or Shock) Subsidence and Landslide (including Rockslide) damage
  • Flood, inundation, storm, tempest, typhoon, hurricane, tornado or cyclone.
  • Impact damage


The Company shall not be liable in respect of:

  • Loss or damage by burglary and / or housebreaking or theft where any member of the insured‟s family is concerned as principal or accessory.
  • Loss of or damage to articles of consumable nature.
  • Loss of or damage to money, securities, stamps, stamp collections, bullion, livestock, motor vehicles and pedal cycles.
  • Loss of or damage to deeds, bonds, bills of exchange, promissory notes, shares and stock certificates, business books, manuscripts, documents of any kind, unset precious stones and Jewelry and Valuable. 


Personal Accident Insurance

(Coverage as per Pradhan Mantri Suraksha Bima Yojana)


The scheme will be a one year cover, renewable from year to year, Accident Insurance Scheme offering accidental death and disability cover for death or disability on account of an accident. The scheme would be offered / administered through Public Sector General Insurance Companies (PSGICs) and other General Insurance Companies willing to offer the product on similar terms with necessary approvals and tie up with Banks for this purpose. Participating banks will be free to engage any such insurance company for implementing the scheme for their subscribers.

Scope of coverage: All savings bank account holders in the age 18 to 70 years in participating banks will be entitled to join. In case of multiple saving bank accounts held by an individual in one or different banks, the person would be eligible to join the scheme through one savings bank account only. Aadhar would be the primary KYC for the bank account.

Enrollment Modality / Period: The cover shall be for the one year period stretching from 1st June to 31st May for which option to join / pay by auto-debit from the designated savings bank account on the prescribed forms will be required to be given by 31st May of every year, extendable up to 31st August. Joining subsequently on payment of full annual premium may be possible on specified terms. However, applicants may give an indefinite / longer option for enrollment / auto-debit, subject to continuation of the scheme with terms as may be revised on the basis of past experience. Individuals who exit from the scheme at any point may re-join the scheme in future years through this modality. New entrants into the eligible category from year to year or currently eligible individuals who did not join earlier shall be able to join in future years while the scheme is continuing.

Benefits: As per the following table:

Table of Benefits Sum Insured
a. Death Rs. 2 Lakh
b. Total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and loss of hand or foot Rs. 2 Lakh
c. Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot Rs. 1 Lakh

Premium: Rs.12/- per annum per member. The premium will be deducted from the account holder‟s savings bank account through „auto debit‟ facility in one installment on or before 1stJune of each annual coverage period under the scheme. However, in cases where auto debit takes place after 1st June, the cover shall commence from the first day of the month following the auto debit.

Eligibility Conditions: The savings bank account holders of the participating banks aged between 18 years (completed) and 70 years (age nearer birthday) who give their consent to join / enable auto-debit, as per the above modality, will be enrolled into the scheme. In case of Joint Account holders, both the account holders are eligible to join on payment of premium for each account holders.

Master Policy Holder: Participating Bank will be the Master policy holder on behalf of the participating subscribers. A simple and subscriber friendly administration & claim settlement process shall be finalized by the respective general insurance company in consultation with the participating Banks.

Termination of cover: The accident cover for the member shall terminate on any of the following events and no benefit will be payable there under:

  1. On attaining age 70 years (age nearest birthday).
  2. At the time of renewal, closure of account with the Bank or insufficiency of balance to keep the insurance in force.
  3. In case a member is covered through more than one account and premium is received by the Insurance Company inadvertently, insurance cover will be restricted to one only and the premium shall be liable to be forfeited.
  4. If the insurance cover is ceased due to any technical reasons such as insufficient balance on due date for renewal or due to any administrative issues, the same can be reinstated on receipt of full annual premium, subject to conditions that may be laid down. During this period, the risk cover will be suspended and reinstatement of risk cover will be at the sole discretion of Insurance Company.
  5. Participating banks will deduct the premium amount in the same month when the auto debit option is given, preferably in May of every year, and remit the amount due to the Insurance Company in that month itself.


The scheme, subject to the above, will be administered as per the standard procedure stipulated by the Insurance Company. The data flow process and data proforma will be provided separately.

It will be the responsibility of the participating bank to recover the appropriate annual premium from the account holders within the prescribed period through ‘auto-debit’ process.

Enrollment form / Auto-debit authorization in the prescribed proforma shall be obtained and retained by the participating bank. In case of claim, the Insurance Company may seek submission of the same. Insurance Company reserves the right to call for these documents at any point of time.

The experience of the scheme will be monitored on yearly basis for re-calibration etc. as may be necessary.

Appropriation of Premium:

  • Insurance Premium to Insurance Company: Rs.10/- per annum per member
  • Reimbursement of Expenses to BC/Micro/Corporate/Agent : Rs.1/- per annum per member
  • Reimbursement of Administrative expenses to participating Bank: Rs.1/- per annum per member

The scheme is liable to be discontinued prior to commencement of a new future renewal date if circumstances so require.


Agriculture Pumpset Insurance (Upto 10 Horse Power)

The Insurance covers the Centrifugal pump sets (electrical and diesel) upto 10 Horsepower capacity which are used for agricultural purposes only.


  • Fire & lightning
  • /Burglary (due to violent forcible entry provided the pump set is kept in a locked enclosure).
  • Mechanical / electrical
  • Riot, Strike, malicious damage


  1. Normal wear & tear, gradual deterioration due to atmospheric condition or otherwise.
  2. Wilful act or gross negligence of the Insured or his representatives.
  3. Faults existing at the time of commencement of insurance and known to the Insured or his representative.
  4. Loss or damage for which the manufacturer or supplier of property is responsible either by law or under contract.
  5. Cost of dismantling, transport to workshop and back as also cost of re-erection.


In the event of any occurrence which might give rise to a claim under this Section, the Insured shall –

  • immediately notify the Policy issuing Office of the Company by telephone or telegram as well as in writing giving an indication as to the nature and extent of loss or damage.
  • take reasonable steps within his power to minimise / restrain the loss or damage of liability.
  • preserve the damaged or defective parts and make them available for inspection by an Official or Surveyor of the Company.
  • furnish all such information and documentary evidences as the Company may require.
  • the Company shall not be liable for any loss or damage on which notice and completed claim form have not been received by the Company within 14 days of its occurrence.

The liability of the Company under this Section in respect of any item of property sustaining damage for which indemnity is provided, shall cease if the same item is kept in operation without being repaired to the satisfaction of the Company.



As per the provisions, terms, exceptions, conditions and endorsements as per standard Motor Policy. 

Covers the insured against loss or damage to the Agriculture Tractor by fire, explosion, self-ignition or lightning, burglary, housebreaking, theft, riot and strike, earthquake, fire and shock, inundation, typhoon, hurricane, storm, tempest, cyclone, hailstorm, frost, landslide/rockslides by accidental external means, malicious act, terrorism activity while in transit by road, rail, inland waterway. Also provides coverage against death or permanent disablement of the driver, due to an accident while driving the Tractor insured during any one policy period.

Legal Liability to Third Parties: – Compensates for death/ bodily injury to third parties up to in the event of tractor being involved in an accident as per M.V. Act, 1988.



Schedule of Benefits (for Parent/ Student): SI per student

  1. Accidental death: Rs. 50000 (parent/student)
  2. Permanent total disablement: Rs. 50000 (student)
  3. Loss of one limb/Eye: Rs. 25000 (student)
  4. Accidental hospitalization: Rs. 5000 (student)

In case of death of Father or Mother, the Claim amount to be converted into FD in the name of student till attainment of adulthood.

Part 1

  • If at any time during the currency of this policy the parent / guardian/ student named in the schedule shall sustain any bodily injury resulting solely and directly from accident caused by external violent and visible means and if such injury shall within six calendar months of the occurrence be the sole and direct cause of death or total and irrecoverable loss of two limbs or two eyes or 100% Permanent Total Disablement (permanently totally and absolutely disable the parent /guardian from engaging in any employment or occupation of any description whatsoever) then the company shall pay to the insured Student or parent / guardian as the case may be the capital sum insured stated in the schedule.
  • In addition to the above benefit mentioned under (A) (if liability is admitted under clause A above) the student shall be reimbursed for the unexpired period of study, the tuition fee, development expenses, boarding and lodging charges and other insured expenses (excluding payments made prior to accident and / or overdue payments as on date of accident) on actual basis subject to the maximum limits as stated in the schedule of benefit.

Part 2&3

If at any time during the currency of this policy the insured Student shall sustain any bodily injury resulting solely and directly from accident caused by external violent and visible means and if such injury shall within six calendar months of the occurrence be the sole and direct cause of death or total and irrecoverable loss of two limbs or two eyes or 100% Permanent Total Disablement (permanently totally and absolutely disable the insured student from engaging in any employment or occupation of any description whatsoever) then the company shall pay to the parent / guardian or insured Student as the case may be the capital sum insured stated in the schedule of benefits. In case of death of both student and the parent / guardian named in the schedule of the policy resulting solely and directly from same accident caused by outward, violent and visible means, within six calendar months of its occurrence then the company shall pay the legal heir of the parent / guardian sums stated in the schedule.

Part 4

Subject to the terms, conditions & exclusions the Company undertakes that if during the period stated in the Policy any insured student contracts any disease or suffers from any illness or sustains any bodily injury through accident, and takes treatment at any Nursing Home/Hospital in India as an inpatient, the Company will pay to the Insured Person such expenses as are reasonably and necessarily incurred subject to the limits prescribed but not exceeding the Sum Insured in any one period of insurance stated against that person in the policy.



(as per Pradhan Mantri Jeevan Jyoti Bima Yojna (PMJJBY)


  1. Death Cover : Rs. 2,00,000 per member
  2. To be provided by Life Insurance Companies


  1. In these Rules, the following words and expressions shall unless repugnant to the context, have the following meanings:-
  2. “THE SCHEME” shall mean „PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA‟ for the Savings Bank Account Holders of „BANK‟.
  3. “THE RULES” shall mean the Rules of the Scheme as set out below and as amended from time to time.
  4. “THE MEMBER” shall mean a Savings Bank Account Holder who has been admitted to benefits of the Scheme and on whose life an assurance has been or is to be effected in accordance with these Rules.
  5. “TERMINAL DATE” shall mean in respect of each Member the Annual Renewal Date following the date on which member completes the age of 55 or the member closes his account with the Bank or discontinuance of premium payment whichever is earlier.
  6. “THE ASSURANCE” shall mean the particular Assurance to be effected on the life of the Member.
  7. “THE BENEFICIARY” shall mean the person or persons who has/have been appointed by the Member as Nominee and whose name or names have been entered in the Bank Records.


The savings bank account holder of the participating banks aged between 18 years (completed) and 50 years (age nearer birthday) and who have given the consent to join the scheme during the „enrollment period‟ are eligible to join the scheme.


Age as recorded by the Bank as per the Age Proof submitted by the Savings Bank Account holder.


Satisfactory evidence of health as required by the insurance company shall be furnished by every eligible member, at the time of his entry into the Scheme, after the „Enrollment Period‟, as incorporated in the “Consent-cum- Declaration Form” for joining the scheme.


Premium to be deducted from member‟s SB Account. The premium is Rs.330/- plus Service Tax (if payable) irrespective of date of entry i.e. during enrollment period or after that date during the first year. Renewal premium is chargeable as per the rate decided from time to time on Annual Renewal dates.


An assurance of Rs.2,00,000/- on death of the insured member is payable to the Nominee.


Upon the death of the Member prior to Terminal Date, the sum assured under the Assurance shall be payable to the nominated Beneficiary, provided the assurance is kept in force by payment of premium for that member.


The Assurance on the life of a Member shall terminate on an Annual Renewal Date upon happening of any of the following events and no benefit will become payable thereunder:-On attaining age 55 years (age nearest birthday) on annual renewal date.

Closure of account with the Bank or insufficiency of balance to keep the insurance in force.


If the insurance cover is ceased due to any technical reasons such as insufficient balance for payment of premium on due date of renewal, the same can be reinstated after the grace period on receipt of premium and a satisfactory statement of good health.


The benefits assured under the Scheme are strictly personal and cannot be assigned, charged or alienated in any way.


The “Bank” or Insurance Company reserves the right to discontinue the Scheme at any time or to amend the Rules thereof on any Annual Renewal Date subject to giving one month‟s notice. Any amendment to the Rules of the Scheme will be done based on mutual agreement between Insurance Company and “Bank”.


All Assurances issued under the Scheme shall be Indian Contracts. They will be subject to Indian Laws including the Insurance Act, 1938 as amended, the Income Tax Act, 1961 and to any legislation subsequently introduced. All benefits under the Scheme arising out of death of any Member shall be payable in Indian Rupees.



Every notice and communication to the Company required by this Policy shall be in writing to the Policy issuing Office of the Company.


This Policy shall be void and all premium paid hereon shall be forfeited to the Company in the event of misrepresentation, misdescription or non-disclosure of any material particular.

Reasonable Care:

The Insured shall take all reasonable steps to safeguard the property insured against any loss or damage. The Insured shall exercise reasonable care that only competent employees are employed and shall take all reasonable precautions to prevent all accidents and shall comply with all statutory or other regulations.

Cancellation: (Except Sections-1,3&8- PMFBY/WBCIS, PMSBY & PMJJBY)

The Policy may be terminated at the request of the Insured in which case the Insurance Company will retain the premium for the period this Policy has been in force at the short period scales of rates, subject to the retention of minimum premium of Rs. 100 by the Insurer. No refund of premium shall be made if a claim is reported in the policy.

The details of the cancellation procedure are as per guidelines.

Claims Procedure:

  1. The Insured shall upon the occurrence of any event giving rise or likely to give rise to a claim under this Policy:
  2. In the event of theft lodge forthwith a complaint with the Police and shall take all practicable steps to apprehend the guilty person or persons and to recover the property lost.
  3. Give immediate notice thereof to the Company and shall within Fourteen (14) days thereafter furnish to the Company at his own expense detailed particulars of the amount of the loss or damage, together with such explanation and evidence to substantiate the claim as the Company may reasonably require.
  4. If the Insured or member of the Insured‟s family comprising the Insured‟s spouse and children shall die, notice of death shall be given by the legal representative(s) forthwith. All certificates information and evidence whether from a Medical Attendant or otherwise required by the Company shall be furnished at the expense of the Insured or his legal representatives and shall be in such form and of such nature as the Company may prescribe..
  5. The Insured shall upon the occurrence of any event giving rise or likely to give rise to a claim under the Policy give immediate notice thereof to the Company and shall forward to the Company forthwith every written notice or information of any verbal notice of claim and shall send to the Company any writ, summons or other legal process issued or commenced against the Insured and shall give all necessary information and assistance to enable the Company to settle or resist any claim or to institute proceedings. The Insured shall not incur any expenses in making good any claim without the prior consent of the Company and shall not negotiate, pay, settle, admit or repudiate any claim without such consent. 


In the event of any loss damage liability or expenses covered by this Policy there shall be any other insurance covering the same loss damage liability or expenses, whether effected by the Insured or not this Policy shall pay only so much of the excess of such loss damage liability or expenses as is not recoverable under such other insurance subject always to the limitations of this Policy.


If any claim under this Policy shall in any respect be fraudulent or if any fraudulent means or devices are used by the Insured or any one acting on the Insured‟s behalf to obtain any benefit under this Policy, all benefits under the Policy shall be forfeited.


The Company may at its option reinstate/replace or repair the property or premises lost or damaged or any part thereof instead of paying the amount of the loss or damage or may join with any other insurer in so doing but the Company shall not be bound to reinstate exactly or completely but only as circumstances permit and in reasonably sufficient manner and in no case shall the Company be bound to expend more in reinstatement than it would have cost to reinstate such property as it was at the time of occurrence of such loss or damage and not more than the Sum Insured by the Company thereon.


If the property hereby insured shall at the time of any loss or damage be collectively of greater value than the Sum Insured thereon, then the Insured shall be considered as being his own insurer for the difference, and shall bear a ratable proportion of the loss or damage accordingly. Every item insured, if more than one, of the Policy, shall be separately subject to this condition.

Grievance Redressal Mechanism

To address any grievance/ complaint under the scheme, a committee consisting of District Agriculture Officer (Nodal Officer), representatives of implementing insurance company and bank/ financial institution shall be constituted. The working of the grievance committee will be monitored by District Level Monitoring Committee (DLMC) under the chairmanship of District Magistrate.

Observance of Terms and Conditions:

The due observance and fulfillment of the terms, conditions and endorsement of this Policy in so far as they relate to anything to be done or complied with by the Insured shall be a condition precedent to any liability of the Company to make any payment under this Policy.


The Company shall not be liable in respect of:

  1. Loss or damage, liability or expenses whether directly or indirectly, occasioned by happening through or arising from any consequences of war, invasion, act of foreign enemy, hostilities (whether war be declared or not) civil war, rebellion, revolution, insurrection, mutiny, military, or usurped power or civil commotion or loot or pillage in connection herewith.
  1. Loss or damage caused by depreciation or wear and tear
  1. Consequential loss of any kind or description.
  1. a) Loss or damage directly or indirectly caused by or arising from or in consequence of or contributed to by nuclear weapons material.b) This Insurance does not cover loss or damage directly or indirectly caused by or arising from or in consequence of or contributed to by ionising radiation or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel. For the purpose of Condition 4 (b) only combustion shall include any self-sustaining process of nuclear fission.


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