As to the statistics, the paid up capital is such that 35 per cent is given by GIC, 30 per cent by the NABARD and 8.75 per cent by the four public sector general insurance companies respectively.
The National Agricultural Insurance Scheme in India was introduced in 1999-2000 season. The Ministry of Agriculture in India implemented it. The scheme aims at protecting the farmers against losses incurred by the farmers due to crop failure because of natural calamities (drought, flood hailstorm, cyclone).
The scheme generally covers most of the crops such as sugarcane, potato, cotton, ginger, onion, turmeric, chilies, jute, tapioca, banana and pineapples. The insurance premiums for different types of crops are as follows:
Apart from this 50 percent of subsidy in premium are allowed to small and the marginal farmers.
The Department of Agricultural and Cooperation introduces the Farm Income Insurance Scheme (FIIS). As to this scheme, a farmer is being insured from his level of production as well as market risks.