NOTIFICATION The Government of Telangana hereby notify the Crops and Areas (District wise) during Rabi 2015-16 to implement the Paddy Crop as “Village as Insurance Unit” and other crops as Mandal Insurance Unit Scheme under MNAIS in (5) Districts of the State vide Annexure I to III and Annexure IV to X, Statements 1 to 5 for Mandal Insurance Unit and Proformae A&B of (5) Districts for Village as Insurance Unit appended to this order Click Here for Detailed Government Order
2. Further, settlement of the claims as per the MNAIS Guidelines and administrative approval of Government of India for Rabi 2015-16 season issued vide letter 1st read above the condition that, the indemnity claims on respect of wide spread calamities will be settled on the basis of yield data furnished by the State Government based on requisite number of Crop Cutting Experiments (CCEs) conducted under General Crop Estimation Survey (GCES) and not on any other basis like Annavari / paisawari certificate / Declaration of drought /flood, Gazette Notification etc., by any other Department / Authority.
3. The Director of Agriculture, Hyderabad shall take further action in the matter
Notification of Modified National Agricultural Insurance Scheme under National Crop Insurance Programme (NCIP) in 5 Districts of Telangana State during Rabi 2015-16 Season The Main features / Operational Modalities
Ministry of Agriculture, the Government of India (GOI) vide communication No.13015/02/2012-Credit-II, dt.20/03/2015 issued the administrative instructions for implementation of National Crop Insurance Programme (NCIP) in all the states and Union Territories of India.
In meeting of State Level Coordination Committee on crop insurance, Govt. of Telangana held on 08/10/2015, the committee has decided to implement Modified National Agriculture Insurance Scheme under National Crop Insurance Programme (NCIP) in 5 Districts of Telangana during Rabi 2015-16 season.
The details of the notification with respect to the MNAIS, are described below:
MNAIS will be implemented by Agricultural Insurance Company of India (AIC) which has been implementing erstwhile NAIS; MNAIS and WBCIS in erstwhile Andhra Pradesh.
(1) The District-wise Crops notified by the State are provided here below
Districts and Crops Notified in TELANGANA State
|1||Nizamabad||Rice (Village made as insurance unit), Jowar Unirrigated, Maize, Onion, Sunflower,Groundnut|
|2||Karimnagar||Rice (village made as insurance unit), Groundnut, Jowar Un irrigated, Maize, Sunflower|
|3||Medak||Rice (Village is made as insurance unit), Bengalgram, Jowar Unirrigated, Maize,Onion, Sunflower|
|4||Nalgonda||Rice (village made as insurance unit), Blackgram, Groundnut, Jowar Unirrigated,|
|5||Warangal||Rice(village made as insurance unit), Red Chillies, Groundnut, Jowar Unirrigated, Maize|
The crop-wise Indemnity Level (IL), Sum Insured limits and
Under NCIP-MNAIS, two levels of indemnity i.e, 80% and 90% are considered corresponding to risk level and the premium rates are worked out through standard actuarial methodology.
The crop-wise district wise Indemnity Level (IL) and Premium Rates are provided in Table-1and Table 1(A).
(2)Farmers Eligible for Coverage:-
All farmers including share/croppers, tenant farmers growing the notified crops in the notified areas are eligible for coverage.
The Scheme covers following groups of farmers:
- a) On a compulsory basis for loanee farmers: All farmers growing notified crops and having sanctioned credit limits for Seasonal Agricultural Operations (SAO) loans from Financial Institutions for notified crop (s) as on 31/12/2015.
Bank branch will apportion coverage among insurable crops, based on acreage mentioned in loan application (crop wise) or on the basis of actual area sown as declared by the farmer subsequently.
- b) On voluntary basis for Non-loanee farmers: All other farmers growing notified crops who opt for the Scheme. These farmers could be:
(i) Individual owner-cultivator farmers
(ii) Farmers enrolled under contract farming, directly or through promoters / organizers.
(iii) Groups of farmers / societies serviced by Fertilizer Companies, Pesticide firms, Crop Growers associations, Self Help Groups (SHGs), Non-Governmental Organizations (NGOs), and others.
(iv) Corporate farms
(3) Insurance Unit (IU):
Insurance unit for Rice is village/Group of villages in all the Districts and for other crops the unit is Mandal/Group of Mandals.
|The details of insurance units district- wise crop-wise are furnished in Annexure –I to III appended.
(4) Premium subsidy and Sharing of Premium Subsidy:
Premium subsidy shall be available to farmers up to Compulsory coverage or value of Threshold Yield, whichever is higher for loanee farmer and value of TY for non loanee farmers. The difference between the Actuarial (Gross) Premium and the Premium payable by the farmer, is shared equally between the Government of India and State Government.
Further, the subsidy part of the premium shall be remitted by the State Government to AIC in advance, i.e, at the beginning of the Season, based on fair estimates.
(5) Sum Insured Limits & Coverage:
LOANEE F ARMERS:
(a) COMPULSORY COVERAGE:- The Sum Insured for
individual farmer will be the product of farmer’s ‘area under cultivation’ (in hectare) declared/ as mentioned in loan application for that notified crop and Compulsory Coverage Sum Insured per hectare and net premium payable by farmer as mentioned in this Notification in Table I (Column C) & I (A). The amount of coverage is restricted wherever the premium rates are higher than capped rates.
(b)ADDITIONAL COVERAGE:- If per hectare sanctioned credit limit for the crop is less than per hectare Value of Threshold Yield, the farmer can opt for the Additional Coverage up to value of TY as per Table 1 and 1(A). The farmer has to submit a Proposal Form in this regard in the Bank where Compulsory Coverage is done. The farmer has to mention the area proposed under Additional Coverage. Cut-off-Date of submission of Proposal Form applicable for Non-Loanee Farmers shall be applicable for these Loanee Farmers as well.
If the per hectare Compulsory Coverage Sum Insured is more than per hectare Value of Threshold Yield, No additional coverage is available (with subsidy).
(c) EXTENDED COVERAGE:-
(i) Extended Coverage is not available if the per hectare Compulsory Coverage Sum Insured is MORE than the 150% value of Average Yield.
(ii) If the per hectare Compulsory Coverage Sum Insured is LESS than the 150% value of Average Yield, Extended Coverage is the difference between the 150% Value of Average Yield and Compulsory Coverage Sum Insured.
Farmers have the option to go for higher sum insured. But for the difference amount in the Sum insured, no subsidy will be payable.
The Farmers can opt for Extended Coverage as per Table – 1 and has to mention the area proposed under Extended Coverage. Cut-off-Date of submission of Proposal Form applicable for Non- Loanee Farmers shall be applicable for these Loanee Farmers as well. Actuarial Premium Rates as per Table – 1 is payable by the farmers for the Extended Coverage.
NON–LOANEE FARMERS (OPTIONAL BASIS)
Farmers desirous of joining the Scheme for a Notified Crop under Notified area in a Crop Season and who are not covered as Loanee Farmers for the set of land and are eligible for coverage can fill up Proposal Form and within stipulated cut-off-date submit the proposal form along with the premium to nearest Bank Branch or Authorized channel partners i.e. United India Insurance Company Limited or Oriental Insurance Company Limited or Insurance Intermediaries, MI Agents of the Insurance Company. It is mandatory for Non-loanee farmer to have a Bank Account for availing insurance.
(a) NORMAL COVERAGE:- The Normal Coverage is the Value of Threshold Yield (TY) and the net premium rate as per Table –1 is payable by the farmer. The farmer has to mention in the proposal form, the area proposed under Normal Coverage.
(b) EXTENDED COVERAGE:- Extended Coverage is the difference between the 150% Value of Average Yield and Value of Threshold Yield. The farmer has to specify in the proposal form, the area proposed under Extended Coverage. Coverage beyond 100% value of Threshold yield and upto 150% value of Average yield shall not have premium subsidy.
(6) Seasonality Discipline
The seasonality discipline (cut-off dates) as applicable to various crops during Rabi-2015-16 season is as follows:
|A C T I V I T Y||CUT OFF PERIOD/DATE|
|Loaning period (loan sanctioned) for Loanee farmers covered under Compulsory basis||1st OCTOBER 2015 TO 31ST DECEMBER 2015|
|Cut-off date for receipt of Proposals of non
loanee farmers by
Banks / PACs.
|UPTO 31ST DECEMBER 2015|
|Cut-off date for receipt of Declarations of
Loanee farmers from
Banks by AIC
|UPTO 31ST JAN 2016|
|Cut-off date for receipt of Declarations of non loanee farmers from
Banks to AIC
|UPTO 31ST JAN 2016|
|Cut-off date for receipt of Declarations of non
loanee farmers from
|UPTO 15TH JAN 2016|
|Cut-off date for receipt of yield data||(Preferably within a month from the final harvest and not beyond) -31st July 2016|
(7) Coverage Procedure:
- LOANEE FARMERS (COMPULSORY BASIS)
The present system of Nodal Bank under NAIS, will continue for MNAIS as well, wherein AIC is not required to deal with all the loan advancing points (branches/PACs) and instead, deals only with designated ‘nodal points’, at district level which are mostly the controlling offices of the branches/PACs. Loanee farmer shall continue to be covered by the present Nodal Bank system. All the Banks (including private sector Banks) where Crop loans are Sanctioned/Advanced for the Notified Crops in a Notified Insurance Unit (IU) for a Notified Crop Season, are required to be COMPULSORILY insured under MNAIS.
For loanee farmers, the modalities for submission of declarations will be the same as in the existing NAIS. Whenever a bank sanctions loan for notified crop in notified area, the same is eligible for compulsory coverage as per seasonality discipline.
The Loan advancing Bank Branch / Primary Agriculture Cooperative Society (PACS) shall prepare for each IU, a Premium Register giving details like Name of the Farmer, Crop Loan Account Number, crop- wise Area Insured, crop-wise Compulsory Sum Insured & Premium, etc.
Bank branch will apportion coverage among insurable crops, based on acreage mentioned in loan application crop wise or on the basis of actual area sown as declared by the farmer.
For Loanee farmers Opting Sum Insured beyond Compulsory Sum Insured, the premium register should include Crop-wise Area Insured, Sum Insured & Premium under Additional Coverage, & Crop-wise Area Insured, Sum Insured & Premium under Extended Coverage.
Based on the Premium Register and other Crop loan records, a monthly consolidated statement of crop-wise and IU-wise details of crop insurance with insurance charges(Premium payable by Farmer), and remit the same to its Nodal Bank within 15 days of the month during which the loan was sanctioned (cut-off date). The bank branch / PACS shall finance the additional loan towards premium amount payable by the farmer, and debit the same to Crop loan account.
For the crop loans sanctioned through Kisan Credit Cards (KCC) which are eligible for compulsory coverage, banks shall maintain all back up records, registers relating to compliance with MNAIS and its seasonality discipline, cut-off-date for submitting the Declarations as in the case of normal crop loans. Bank branch shall apportion the coverage among the insurable crops based on either the acreage mentioned in loan application based on which the ‘Maximum Borrowing Limit (MBL)’ is fixed by the bank or in the proportion the farmer declares separately for the Season.
Crop loans advanced against hypothecation of gold / ornaments are also eligible for compulsory, subject to insurability of crop and seasonality discipline.
The Nodal Branch, in turn, shall consolidate these statements from the bank branches / PACS under its jurisdiction into Month-wise, IU-wise, Crop-wise Declarations, and forward the same to AIC along with a bank cheque / demand draft towards the insurance premium, in accordance with the cut off dates as specified in the Notification for that particular crop and season for Loanee farmers.
Further the Nodal Bank(s) shall collect the list of individual insured farmers (both loanee & non-loanee) with requisite details like name, fathers’ name, Bank Account number, village, categories – S&M/SC/ST/Women, insured acreage, insured crop(s), sum insured, premium collected, Govt. subsidy etc as per Annexure IX from concerned branch in soft copy for further reconciliation and send the same to AIC along with declarations of farmers within 15 days after final cut-off date.
For the declarations pertaining to Additional/Extended Sum Insured, the cut off dates as specified in the Notification for Non Loanee farmers shall apply.
(B)PROCREDURE FOR COVERAGE OF NON-LOANEE FARMERS
Non-loanee farmer has to operate an SB A/c in any Cooperative Bank/ Schedule Commercial Bank/Regional Rural Bank in his are
b) The farmer has to submit the duly filled-in prescribed proposal form along with documents in support of his ownership of land, bank account and requisite premium at Bank Branch/PAC In case the farmer is tenant farmer then the farmer need to submit the tenant agreement format annexed herewith (Annexure X) duly attested by Revenue Officer along with the copy of the owner’s pattadhar pass book. If required by AIC, the Farmer has to submit the Certificate of Sowing of the Insured Crop(s).
c) Apart from Banks, the Non-loanee farmer can also avail insurance through insurance intermediaries/ Authorised Agents of AIC, Designated PSU General Insurance Companies.
d) Insurance companies retain the right to accept or reject insurance proposal(s) in case proposal is incomplete, not accompanied by necessary documentary proof or insurance premium.
e) The insured farmer forfeits the premium and the right to claim (if any) if the material facts furnished in the proposal form are wrong or incorrect.
(8) Different Methods of Indemnification
Loss assessment is based on the Area approach except in case of localized calamity like hail storm wherein, the assessment is based on individual approach.
(A) Wide Spread Calamities
- i) Based on crop yield: The Scheme operates on basis of ‘Area Approach ’i.e., Defined Areas for each notified crop for widespread calamities and insurance unit is revenue Village/mandal/group of mandals as specified crop wise in item(3) above .
Based on actual yield furnished by Directorate of Economics and Statistics (DES), Claim is calculated for each crop\insurance unit at the end of season as per the formula given here below:
If’ Actual Yield’ (AY) per hectare of insured crop for insurance unit (calculated on basis of requisite number of CCEs) in insured season, falls short of specified ‘Threshold Yield’ (TY), all insured farmers growing that crop in defined area are deemed to have suffered shortfall in yield of similar magnitude. MNAIS seeks to provide coverage against such contingency.
‘Claim’ shall be calculated as per the following formula:
(Threshold Yield – Actual Yield)
——————————————-X Sum Insured
Where, Threshold yield for a crop in a notified insurance unit, is the average of past seven years (excluding calamity year(s) as notified by State Government/UT) multiplied by applicable indemnity level for that crop.
Indemnity level is 90% & 80% corresponding to Low Risk, Medium Risk areas respectively which is notified for a particular crop at district level.
- ii) On-Account Payment of Claims due to Mid-Season Adversity:
- In case of adverse seasonal conditions during crop season viz. floods, prolonged dry spells, severe drought etc, insurance companies 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. Appraisal of mid-season adversity and quantum of on-account payment will be established jointly by Government of India/concerned State Government/UT and AIC. On account payment will be implemented only in states where such proxy indicators can be established and will be considered for payment, only if the expected yield during the season is less than 50% of normal yield.
- In such an instance, AIC based on declarations received from banks or insurance proposals, received from other authorized agencies or directly from farmers for such crops and areas affected by adverse season, shall work out likely claims which will occur based on end of season yield assessment, and will release claim upto 25% of likely claims, in advance to farmers (subject to receipt of premium subsidy) through nodal banks subject to adjustment against claims assessed on yield basis i.e. in case end of season yield based claim works out to be higher, then difference of claim would be payable and in case end of the season claim based on yield happens to be lower, then AIC reserves the right to recover excess claims so paid to farmers.
iii) Prevented Sowing /Planting compensation
Due to non-receipt of sufficient rainfall or excess rainfall or other weather adversities, farmers in one insurance unit may not be in a position to either sow or transplant crop or grow crop (failed at an early stage). When this incidence is widespread i.e. majority of area in one insurance unit remains unsown / failed sowing, (say, more than 75% of normal area) or as decided for various crops by SLCCCI at time of notification, then AIC based on weather / rainfall position in insurance unit, as issued by concerned office of IMD during the season, and acreage-sown particulars received from State Government, shall decide extent of claims to be paid. In case of non-availability of IMD stations at a location or non-availability of IMD data on certain days, other authentic weather stations / rain gauge stations of State Government/ Autonomous bodies/ Agriculture universities / Private agencies as approved by SLCCCI can also be considered for purpose of measuring weather parameters including rainfall. Maximum claims payable will be restricted to 25% of sum-insured. Having become eligible for prevented / failed sowing claim, insurance cover gets automatically terminated. Process of determining prevented / failed sowing being automated, farmers need not lodge any claim for prevented / failed sowing.
(B) Individual level Assessment
- Localized Risk
Insured farmers who experience crop losses due to occurrence of localized peril viz. hailstorm will give immediate notice (in standard format) to AIC through concerned financial institution /channel partner or directly, within 48 hours along with particulars of crop insured and extent and cause of damage. On receipt of loss intimation, insurance company shall depute Loss assessors (authorised loss assessors or technical personnel of the company) to area for assessment of crop loss. District Revenue administration and Agriculture Department shall assist AIC in assessing extent of crop loss.
Cost of inputs incurred until time of occurrence of peril, and expected loss in final yield due to peril, will form basis for loss assessment. In case claims settled under localized claims are less than ‘area approach’ claims, only balance claims shall be paid to insured farmers. However, if claims settled under localized calamities are higher than widespread calamity based claims, farmer is not required to refund balance claim.
Disputed claims / sub-standard claims, if any will be referred through SLCCCI/State Government to DAC for consideration by AIC; and decision of DAC in case of any interpretation of provisions of scheme or disputes will be binding on State Govt. / AIC/ Banks and the farmers.
(9)Bank Service Charge
The Nodal Banks shall be paid Service charge @ 4.00% of premium paid by the farmer.
10) The role of various agencies/Government Department, AIC shall be as defined and explained in the scheme and modalities.
11). The Certified Crop yield data for insured crops /unit areas and individual CCEs – wise shall be provided by Directorate of Economics & Statistics of Govt. of Telangana alone and not by any other Department.
12) IMPORTANT CONDITIONS/CLAUSES APPLICABLE FOR COVERAGE OF RISK:
- Insurance companies should have received the premium for coverage either from bank, channel partner, insurance intermediary or directly. Any loss in transit due to negligence by these agencies or non-remittance of premium by these agencies, insurance company is not liable for payment of claims.
- In case of any misreporting by nodal bank /branch in case of compulsory farmers coverage, concerned bank only shall be liable for such mis-reporting.
- Insurance company will have discretion to accept or reject any risk of an insurance unit(s) for any crop(s) considering prevailing agricultural situation. Mere sanctioning / disbursement of crop loans and submission of proposals/ declarations and remittance of premium by farmer / bank, without explicit intent to raise the crop, does not constitute acceptance of risk by insurance company.
- In the event of near total crop failure during early or mid- season affecting entire insurance unit, insurance company shall adopt a graded scale indemnity settlement restricting indemnity to proportion of input cost upto that stage. Graded scale shall be worked out by insurance company in consultation with State Government. Wherever necessary, services of expert agencies may be availed, by insurance companies for arriving at graded scale of payment.
- Insurance company, if deemed necessary, will investigate coverage on its own or by an agency appointed for the purpose and may utilize technologies, including satellite imagery for identification of anomalies in crop insurance coverage vis-à-vis actual field conditions. Upon identification of adverse phenomenon based on such investigation, insurance company has the right to scale down sum insured. In such cases no refund of premium paid by farmers shall be made by insurance company.
- Where the acreage insured is more than the acreage sown under a particular crop at the insurance unit level, the insurance company can scale down the sum insured on pro-rata basis, and settle the claims on the scaled down sum insured. If needed, DAC may formulate separate guidelines for the purpose once the Committee set-up in this regard submits the report and the DAC accepts it.
- Withdrawal of NAIS and Service Tax
MNAIS is implemented as a replacement for NAIS, and hence exempted from Service Tax similar to NAIS
- 14. Notification of calamity year:
2009-10 has been declared as calamity year and excluded for T.Y calculation.
- 1. Annexure – I
- Annexure – II
- Annexure – III
- Table – 1
- Table – 1(A)
- Statements 1 to 5
- Proforma A & B (5 Districts)
- Annexure IV
- Annexure V
- Annexure VI
- Annexure VII
- Annexure VIII
- Annexure IX
- Annexure X