Launched on 18th February 2016, the National Agriculture Insurance Scheme (NAIS) provides comprehensive crop insurance and financial support to farmers. This scheme protects farmers from losses due to natural calamities (drought, flood, hail, cyclone, etc.), pests, and diseases, thereby stabilizing farm incomes and encouraging the adoption of modern agricultural practices. NAIS is implemented through a network of insurance companies and banks, covering over 50 crore farmers and more than 50 crops nationwide.
Objectives
• Provide financial assistance to farmers suffering crop losses from unforeseen events
• Stabilize farm incomes and ensure continuity in agricultural production
• Encourage modern, innovative agricultural practices
• Promote crop diversification and improve credit-worthiness
• Protect farmers against production risks
Benefits
• Comprehensive Coverage:
– Covers food crops, oilseeds, and selected commercial/horticultural crops
– Protects against losses from natural calamities, pests, diseases, and localized hazards (hailstorms, landslides)
– Includes coverage for sowing/planting, standing crop, and post-harvest losses
• Affordable Premiums:
– Kharif crops: Maximum 3.5% premium of the sum insured
– Rabi crops: 1.5% premium
– Commercial/horticultural crops: Actuarial premium rates apply
– Small and marginal farmers receive additional premium subsidy (up to 10%), shared by the State and Central Governments
– In North-Eastern States, Jammu, Kashmir, and Himachal Pradesh, the government covers the entire premium
• Timely Claim Settlement:
– Claims are processed within two months of harvest, with compensation directly transferred to the farmer’s bank account
• Technology Integration:
– Utilizes satellite imaging, drones, and mobile apps for precise crop loss assessment
Premium Rates
• Food Crops and Oilseeds:
– Kharif crops: 3.5% of the sum insured
– Rabi crops: 1.5% of the sum insured
• Commercial/Horticultural Crops:
– Premiums are determined based on actuarial calculations
• Subsidies for Small & Marginal Farmers:
– Premium subsidies up to 10% are provided by both the State and the Government of India
Eligibility
• Loanee Farmers:
– Farmers who avail seasonal agricultural operations (SAO) loans from banks or cooperative societies are automatically enrolled, with premiums deducted from the loan amount.
• Non-Loanee Farmers:
– Can apply voluntarily for insurance coverage, subject to application within the prescribed timeframe (usually within 2 weeks of the sowing season).
• All farmers must have an insurable interest in the insured crops and possess valid land ownership certificates or land tenure agreements.
• Farmers must not have received compensation for the same crop loss from any other source.
Application Process
Online – Via CSCs
For Loanee Farmers:
• Step 01: Visit your nearest bank or PACS branch where you have taken your loan.
• Step 02: The bank will automatically enroll you in the NAIS, and premiums will be deducted at the time of loan disbursement.
For Non-Loanee Farmers:
• Step 01: Visit the nearest branch of a bank offering NAIS or an authorized insurance company.
• Step 02: Fill out the NAIS application form and submit the required documents (see below).
• Step 03: Pay the applicable premium, which is based on crop type and coverage level.
Online Registration and Application:
• Step 01: Visit the official PMFBY website and click on “Farmer Corner”.
• Step 02: If new, register by filling in the mandatory details in the registration form, including farmer, residential, and account details.
• Step 03: After successful registration, log in using your credentials at https://pmfby.gov.in/farmerLogin.
• Step 04: Complete the online application form by uploading all necessary documents.
• Step 05: Preview, submit the application, and choose the payment option (Pay Later or Make Payment).
• Step 06: Print the confirmation/receipt for future reference.
Documents Required
• Passport-size Photograph
• Passbook or Bank Statement
• Identity Proof: Aadhaar Card, PAN Card, Voter ID, etc.
• Address Proof: Aadhaar, Electricity Bill, etc.
• Evidence of Land Records: Land Possession Certificate, RoR, etc.
• Declaration: Details of crop sown/intended to be sown
Frequently Asked Questions (FAQs)
Q: What is the National Agriculture Insurance Scheme (NAIS)?
A: NAIS is a crop insurance scheme providing financial protection to farmers against crop losses due to natural calamities, pests, and diseases.
Q: Who is eligible to apply?
A: All farmers, including loanee and non-loanee farmers with insurable interest in notified crops and valid land records in notified areas, are eligible.
Q: How can farmers apply for NAIS?
A: Farmers can apply online via the PMFBY website through the Farmer Corner or by visiting banks/PACS for loanee farmers.
Q: What is the premium amount for the scheme?
A: Premium rates vary by crop: 3.5% for Kharif crops, 1.5% for Rabi crops, with actuarial rates for commercial/horticultural crops. Small farmers receive additional subsidies.
Q: Are there any subsidies on the premium?
A: Yes, small and marginal farmers receive premium subsidies up to 10%, shared by the State and Central Governments. Farmers in certain regions have full premium coverage by the government.
Q: What documents are required to apply?
A: Required documents include a passport-size photograph, bank passbook, identity proof, address proof, land records, and a crop declaration.
Q: How are claims processed under NAIS?
A: Claims are processed within two months of harvest and the compensation is directly transferred to the farmer’s bank account.
Q: Can non-loanee farmers apply?
A: Yes, non-loanee farmers can apply voluntarily by following the prescribed application process.
Q: How many states are participating in the scheme?
A: NAIS is a national scheme implemented across all states in India.
Q: Are crop loans disbursed through Kisan Credit Cards (KCCs) eligible?
A: Yes, farmers with KCC-linked crop loans are automatically covered under NAIS.