You are on page 1of 3

Panel set up to review crop insurance recommends agriculture insurance Act

Published on Down To Earth (http://www.downtoearth.org.in)

Panel set up to review crop insurance
recommends agriculture insurance Act
Author(s): 
Jyotika Sood [1]
Issue Date: 
2014-6-20
Insurance companies should be allocated districts for minimum three years, instead of one season, to
remove uncertainties, says panel headed by P K Mishra

Farmers inspect crops damaged by
hailstorm in Hoshangabad district of Madhya Pradesh after the freak hailstorms destroyed vast tracts of
crops in north and central India in February and March this year (Photo: Lokesh Tiwari)
The committee set up by the Central government to review the implementation of crop insurance schemes
in India has recommended introduction of an agriculture insurance Act to take care of specific
requirements of the crop insurance and agriculture insurance in general.
The four-member committee, appointed in September 2013, was headed by former agriculture secretary,
P K Mishra, and submitted its report [2] in May this year.
General insurance v crop insurance
The report says crop insurance is different from general insurance in many ways and does not strictly
follow rules and regulations of general insurance, such as receipt of insurance premiums and claim
intimation by the insured. But the Insurance Regulatory and Development Authority (IRDA) has placed
crop insurance under the miscellaneous category of the general insurance business. In the absence of
appropriate law, various provisions such as compulsory coverage of loan availing farmers being
challenged in courts. Therefore, it would be appropriate to have an agriculture insurance Act, says the

http://www.downtoearth.org.in/print/44849[6/22/2014 6:21:55 AM]

principal secretaries for agriculture in Gujarat and Rajasthan respectively. The committee has pointed out that under the present crop insurance system. districts are allocated through bids to insurance companies every season. thereby. through ministry of home and agriculture. The committee was formed to examine the loopholes. The panel members comprised Raj Kumar and D B Gupta. The committee claims that implementation of recommendations in a time-bound manner.downtoearth. should take measures to integrate crop insurance schemes with or link them to disaster mitigation activities. can be utilised to put in place appropriate systems in other states. They were asked to submit their report within six months. http://www. and P J Joseph. camera-fitted mobile phones or hand-held machines while conducting crop cutting experiments (to determine average yield in a district). the report says. so as to transmit data on a real-time basis. creating uncertainty among insurers willing to invest in insurance education and awareness. Gujarat model The report says that a web portal along the lines of the one in Gujarat should be developed by the National Informatics Centre (NIC) for other states so as to make data about land records available to financial institutions.in/print/44849[6/22/2014 6:21:55 AM] . therefore. The committee has.Panel set up to review crop insurance recommends agriculture insurance Act committee. chairperson-cummanaging director of Agriculture Insurance Company of India Limited. making it possible to detect multiple loans taken against the same land. The applications developed in Gujarat and also by the pilot studies under the World Bank technical assistance in Maharashtra and Rajasthan. with some prioritisation. The web portal would enable financial institutions to link each farmer’s existing loan account to the unique land account. would help to plug the loopholes. effectively addressing the issues involved.   Other key recommendations   RBI and NABARD should monitor the compliance of their circulars regarding compulsory crop insurance for loan availing farmers with respect to notified crops in identified areas Revisit the premium rates for Modified National Agricultural Insurance Scheme New and innovative products of insurance may be introduced An atlas of critical weather elements which trigger crop-yield losses in different crop growth periods should be developed for different agro-climatic regions The Central government. The committee says that state governments should ensure the use of GPRS-enabled. recommended that districts/crops be allocated to an insurer (the insurance company) for a minimum of three years. in the implementation of existing crop insurance schemes—the National Agricultural Insurance Scheme (NAIS). Modified National Agricultural Insurance Scheme (MNAIS) and Weather-Based Crop Insurance Scheme (WBCIS)—and suggest measures for plugging them.org. in any. Even those insurers who pay a large amount of claims in a particular season may not reap goodwill in the next season when they are allocated another district.

org.org.Panel set up to review crop insurance recommends agriculture insurance Act Source URL: http://www.in/content/panel-set-review-crop-insurance-recommends-agriculture-insurance-act http://www.downtoearth.downtoearth.in/print/44849[6/22/2014 6:21:55 AM] .