The Agriculture Insurance Company of India Ltd.' has been working under the companies act 1956 for the agriculture insurance in India. It is working with the capital sharing from the Agriculture Insurance In India constituting four general public sector insurance such as National Insurance Company, New India Assurance Company Ltd, Oriental Insurance Company Ltd, and United India Insurance Company Ltd and NABARD.
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.
National Agricultural Insurance Scheme
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:
- 3.5 per cent of sum insured for Bajra and Oilseeds
- 2.5 per cent of sum insured for Cereals, other Millets and Pulses
Apart from this 50 percent of subsidy in premium are allowed to small and the marginal farmers.
Farm Income Insurance Scheme
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.
Actuarial calculations determine the premium rates in this scheme. The Government also provides a larger part as subsidy. Around 75 percent is being subsidized to the small and the marginal farmers and 50 percent to the other farmers.
As to the statistics, during the Rabi 2003-04, over 1.8 lakh farmers were being covered under this scheme. There was a total income generation of Rs 14.1 crores a premium.
Rainfall Insurance "Varsha Bima"
During the year 2004, the "Varsha Bima" insurance scheme was being introduced also known as rainfall insurance scheme. This scheme provides five different options to the farmers.
The scheme is piloted in 20 rain-gauge areas in the states such as Andhra Pradesh, Karnataka, Rajas than and Uttar Pradesh.