Telangana State implementation of Weather Based Crop Insurance Scheme – Kharif 2014


The Government of Telangana hereby notify the following Crops and Districts during Kharif 2014. The main features / Operational Modalities of the scheme and Term Sheets vide Annexure I to VIII in respect of Cotton, Red Chilly, Oil Palm, Sweet Lime are appended to this order.

S.No Crop proposed District
1  Cotton Adilabad, Warangal, Khammam, Nalgonda, Karimnagar, Mahaboobnagar
 2 Red Chilly Warangal, Khammam
3 Oil Palm Khammam
4 Sweet Lime Nalgonda

The Commissioner & Director of Agriculture, Hyderabad shall take further action in the matter.

Notification of Crops under National Crop Insurance Programme (NCIP) – Weather Based Crop Insurance Scheme for Kharif 2014 season – Telangana

THE MAIN FEATURES/OPERATION MODALITIES

The Department of Agriculture & Cooperation, Ministry of Agriculture, Government of India notified National Crop Insurance Programme (NCIP), a central sector scheme in order to insulate the farming community against agricultural risks and issued the administrative instructions for implementation vide letter No. 13015/02/2012–Credit–II, dated 1st November, 2013. Weather Based Crop Insurance Scheme (WBCIS) is one of the components of NCIP and the objective of this scheme is to mitigate the hardships of the farmers against the likelihood of financial losses on account of anticipated crop loss resulting from the incidence of adverse weather conditions of weather parameters like Temperature, Rainfall, Humidity etc. The State Level Coordination Committee on Crop Insurance convened a meeting on 31st January, 2014 decided to implement NCIP – WBCIS for Kharif – 2014 season in respect of crops like Red Chilly, Cotton and Plantations like Oil palm and Sweet Lime in the selected districts of Telangana as under.

Crop  District(s) 
Red Chilly Khammam,Warangal
Cotton  Adilabad,Karimnagar,Khammam, Mahabubnagar,Nalgonda,Warangal 
Oil palm Khammam
SweetLime  Nalgonda 

 

        2. REFERENCE

WEATHER STATIONS

      :

The lists of Reference Unit Areas (RUAs) in the respective districts notified along with the list of corresponding Reference Weather Stations (RWS) and Back up Weather Stations (BWS) are annexed (annexure II.1 to II.10). In case of non-availability of weather data from the respective Reference Weather Stations or Back up Weather Stations, as an alternative, State Govt. Mandal level Rain gauge Stations/IMD Weather Stations data will be considered for weather data updating as well as for claims computation.

3. AREA APPROACH:

Reference unit areas are linked to specific reference weather stations and the reference unit areas are the Geographical areas are corresponding to the Mandal in which the respective reference weather stations are located. The weather data of the Reference weather stations is reflective of weather of the Reference Unit Area.

4. CULTIVATORS ELIGIBLE FOR COVERAGE:

All the cultivators (including sharecroppers and tenant cultivators) growing the Notified Crops either Irrigated or Unirrigated in any of the Reference Unit Areas shall be eligible for coverage. The Scheme shall be:
Compulsory: For all LOANEE APPLICANT CULTIVATORS i.e. those who have Sanctioned Credit Limit from Financial Institutions (Co-op Banks, Commercial Banks including private commercial Banks, RRB’s etc.,) for the Notified Crops in a Reference Unit Area.
Voluntary: For NON-LOANEE CULTIVATORS i.e. those who do not have Sanctioned Credit Limit from anyFinancial Institution for the Notified Crops in a Reference Unit Area.

5. PERILS COVERED:

Following weather perils, which are deemed to cause “Adverse Weather Incidence” affecting crop health, leading to crop loss, would be covered under the Scheme:

i) For Red chilly Crop:

1. Maximum Temperature 2. Minimum Temperature
3. a. Deficit Temperature – Rainfall Volume
3. b. Deficit Temperature _ Rainfall Distribution 4. Excess Rainfall

ii) For Cotton Crop:

1. a. Rainfall Volume

1. b. Rainfall Distribution 2. Excess Rainfall
3. Disease Conducive Climate

iii) For Oil palm Crop:

1. Deficiency in Water Vapour Pressure 2. Minimum Temperature
3. a. Deficit Rainfall – Rainfall Volume
3. b. Deficit Rainfall – Rainfall Distribution 4. Excess Rainfall

iv) For Sweet Lime Crop:

1. a. Deficit Rainfall – Rainfall Volume
1. b. Deficit Rainfall – Rainfall Distribution 2. Excess Rainfall
3. High RH along with High Temperature 4. Low Minimum Temperature

6. RISK PERIOD:

i) In case of Red Chilly ii) In case of Cotton
ii) In case of Oil palm
iv) In case of Sweet Lime

– Risk period commences from 10th July, 2014 – Risk period commences from 6th July, 2014 – Risk period commences from 15th July, 2014
– Risk period commences from 10th August, 2014

Table containing the coverage periods at phases are given here:

 

CoveragedetailsForOilpalm

  1. No

 

Nameof the cover

 

Phase

 

Period:                From—–to—– 
Deficiency inWater VapourPressure  1st Feb.,2015 to31st May,2015 
Minimum Temperature  1st Dec.,2014to 31st Jan.,2015 
 

3

 

Deficit Rainfall-RainfallVolume

 

Phase – 1  16th July,2014to15th August,2014 
Phase – 2  16th August,2014to 15th Sept.,2014 
Phase – 3  16th Sept.,2014to15th Oct.,2014 
Deficit Rainfall-RainfallDistribution  15th July,2014to30th Sept.,2014 
 

 

4

 

 

 

ExcessRainfall

 

Phase – 1  16th July,2014to31st July,2014 
Phase – 2  1st August, 2014 to31st August,2014 
Phase – 3

 

1st September,2014to30th September,2014 

Coverage details For SweetL ime:

  1. No

 

Nameof thecover

 

Phase

 

Period:              From—-to —– 
1A  Deficit Rainfall-RainfallVolume  Phase – 1

 

10th August,2014to 15th September, 2014 
1B  Deficit Rainfall-RainfallDistribution  10th August,2014to 20th Sept.,2014 
 

2

 

 

ExcessRainfall

 

Phase – 1  1st Oct.,2014to 31st Dec.,2014 
Phase – 2  1st Jan.,2015to 31st March,2015 
Phase – 3  1st April,2015 to 31st May,2015 
3

 

High RH alongwith HighTemperature  Phase – 1  16th August,2014to 30th Sept.,2014 
Phase – 2  1st Sept.,2014to 31st Oct.,2014 
4

 

Low Minimum Temperature  Phase – 1  1st Dec., 2014to31st Dec.,2014 
Phase – 2  1st Jan.,2015to31st Jan.,2015 

RISKACCEPTANCE PERIOD:

i)          ForRed Chilly-Till 31st July,2014 ii)   ForCotton–Till 31st July,2014iii)     ForOilpalm –Till 10th August,2014

iv)        ForSweetLime Till10th August,2014

SEASONALITY DISCIPLINE:Seasonality Disciplineand thebroadcut-offdates areindicatedhere:

Incase ofRedChillyandCotton

SL No.  ACTIVITY  For Loanee Farmers  For Non-loanee Farmers 
Cut-off date for risk coverage  Having availed theLoan/SanctionedCredit Limit– On orbefore31st

July,2014

 

SubmissionofProposalsonor before 31st July,2014

 

Submission of Decl. by Nodal Banks to AIC of India Ltd.,  On    or    before    31st August, 2014  On or before15th August,2014

 

Insurance Intermediaries /Micro Insurance Agents to AIC of India Ltd.,  On orbefore15th August,2014

 

Incase of Oil palmand Sweet Lime

SL No.  ACTIVITY  For Loanee Farmers  For Non-loanee Farmers 
Cut-offdatefor riskcoverage  Having availedthe Loan/SanctionedCredit Limit– On orbefore10th August,2014  Submission of Proposals on or before 10th August,2014 
Submission of Decl. by Nodal Banks to AIC of India Ltd.,  On    or    before    10th September,2014  On orbefore25th September, 2014

 

Insurance Intermediaries/Micro Insurance Agents to AIC ofIndia Ltd.,  On orbefore25th August,2014

 

 

 

COVERAGEPROCEDURE:

(a)InsurancecoverageofLoaneeApplicantCultivatorsshallbethroughtheexisting networkofFinancialInstitutions(FI)atthegrass-rootlevelusingNodalBank systemsas inNationalAgriculturalInsurance Scheme(NAIS).

(b)InsurancecoverageofNon-loaneecultivatorsshallbethroughtheexistingnetworkof FinancialInstitutions(FIs)atthegrass-rootlevel;PublicSectorGeneralInsurance Companies(GIPSA),TheInsuranceIntermediaries,MicroInsuranceAgentsand Authorised Representative ofAIC.

(c)NodalBankBranchesshallbepaidbyAICaservicechargeof4%ontheactual premiumamountremittedbythebanks,beinginthenatureofsharingtheincidental managementexpenses incurredbythemforservicingthe Scheme.

      1. SUMINSURED (Stipulated.Rupeesperhectare):

Red Chilly:        Rs.62,500/- in KhammamandWarangal Districts

Cotton:                Rs.30,000/-inAdilabad,Khammam,Karimnagar,Warangal, and Mahabubnagardistricts; Rs. 26,000/-in Nalgonda District

Oil palm:

Sweet Lime:

Rs.50,000/- in KhammamDistrict

 

Rs.40,000/- in NalgondaDistrict

LoaneeApplicantCultivator’s:`Areaundercultivation’fortheNotifiedCropasalready eclaredbyhimintheLoanApplicationformforthepurposeoffixinghis“Maximum BorrowingLimit(MBL)“bytheLendingFI,multipliedbythestipulatedSumInsuredper hectare.Loanssanctionedwitheffectfrom1st April,2014areeligibleforcoverageunder the scheme.

Non-LoaneeCultivators:TheCultivatorsshalldeclarethe`Areaundercultivation’for eachNotifiedCropintheInsuranceProposalForm.                               Non-loaneefarmerswillhave flexibilitytoinsuresmalleramountswithinmaximumlimit,butnotlessthan50%of maximumlimitofSumInsured.Itismandatory toprovide thebankaccountdetailsinthe proposalformandacopyofthebankpassbookandsubmitXeroxcopyofPattadhar PassBook/10-1adangal;ItisalsomandatorytosubmitCropSownCertificatebythe concernedofficialoftheStategovernmentatvillagelevel.

 

 

 

 

      1. PREMIUMRATE,SUBSIDYAND REMITTENCE OFPREMIUM:

 

AreadyreckonerofapplicablePremiumsharing,subsidyportionandfarmer’s Contributionispresentedinthetabledistrict-wiseandcrop-wise.Inrespectofallthe notifiedcrops,thepremiumsubsidyistotheextentof50%,whichisequallysharedby theCentralandtheStateGovernmentsandwillbereleasedasupfrontpremiumsubsidy tosincetheriskinceptsonly uponreceivingthepremiumin fulli.e.,50%fromthefarmers and balance 50% assubsidycomponent.

 

Thepremium(farmer’sshare)shallberemittedthroughDemandDraftfavouring“AICof India,A/cno.008010200023922payableatHyderabad”.                        SeparateDemandDrafts need tobeobtainedforcoverageofLoanee andNon-loaneefarmers.

 

 

TABLE SHOWING THE PREMIUM SHARING PER HECTARE 
Nameof the Crop

 

S.Iper Hectare Rs./-  Actuarial Premium Rate  Premium Rs./-

 

Farmer Contribution Rs./-  Subsidyfrom State Govt. Rs./-  Subsidyfrom CentralGovt.Rs./-

 

Redchillyin Khammam and WarangalDist.  62,500

 

9.80%

 

6,125

 

3062.50

 

1,531.25

 

1,531.25

 

Cottonin Adilabad, Khammam, Warangal, Karimnagar dist.  50,000

 

9.80%

 

4,900

 

2,450.00

 

1,225.00

 

1,225.00

 

Cottonin Mahabubnaga rdist.  30,000

 

10%

 

3,000

 

1,500.00

 

750.00

 

750.00

 

Cotton in Nalgonda Dist.

 

26,000

 

9.80%

 

2,548

 

1,274.00

 

637.00

 

637.00

 

Oilpalmin KhammamDist.  50,000

 

9.90%

 

4,950

 

2,475.00

 

1,237.50

 

1,237.50

 

Sweet Lime in Nalgonda Dist.  40,000

 

9.90%

 

3,960

 

1,980.00

 

990.00

 

990.00

 

 

 

  1. COVERAGEPROCEDURE:

 

(a)InsurancecoverageofLoaneeApplicantCultivatorsshallbethroughtheexisting networkofFinancialInstitutions(FI)atthegrass-rootlevelusingNodalBank systemsas inNationalAgriculturalInsurance Scheme(NAIS).

 

 

 

(b)InsurancecoverageofNon-loaneecultivatorsshallbethroughtheexistingnetworkof FinancialInstitutions(FIs)atthegrass-rootlevel;PublicSectorGeneralInsurance Companies(GIPSA),TheInsuranceIntermediaries,MicroInsuranceAgentsand Authorised Representative ofAIC.

 

 

(c)NodalBankBranchesshallbepaidbyAICaservicechargeof4%ontheactual premiumamountremittedbythebanks,beinginthenatureofsharingtheincidental managementexpenses incurredbythemforservicingthe Scheme.

 

 

 

 

  1. SUMINSURED (Stipulated.Rupeesperhectare):

 

 

 

  1. Red Chilly:        Rs.62,500/- in KhammamandWarangal Districts

 

 

  1. Cotton:                Rs.30,000/-inAdilabad,Khammam,Karimnagar,Warangal, and Mahabubnagardistricts; Rs. 26,000/-in Nalgonda District

 

 

  1. Oilpalm:

 

  1. Sweet Lime:

 

Rs.50,000/- in KhammamDistrict

 

Rs.40,000/- in NalgondaDistrict

 

 

 

 

LoaneeApplicantCultivator’s:`Areaundercultivation’fortheNotifiedCropasalready declaredbyhimintheLoanApplicationformforthepurposeoffixinghis“Maximum BorrowingLimit(MBL)“bytheLendingFI,multipliedbythestipulatedSumInsuredper hectare.Loanssanctionedwitheffectfrom1st April,2014areeligibleforcoverageunder the scheme.

 

Non-LoaneeCultivators:TheCultivatorsshalldeclarethe`Areaundercultivation’for eachNotifiedCropintheInsuranceProposalForm.                               Non-loaneefarmerswillhave flexibilitytoinsuresmalleramountswithinmaximumlimit,butnotlessthan50%of maximumlimitofSumInsured.Itismandatory toprovide thebankaccountdetailsinthe proposalformandacopyofthebankpassbookandsubmitXeroxcopyofPattadhar PassBook/10-1adangal;ItisalsomandatorytosubmitCropSownCertificatebythe concernedofficialoftheStategovernmentatvillagelevel.

 

 

 

 

  1. PREMIUMRATE,SUBSIDYAND REMITTENCE OFPREMIUM:

 

AreadyreckonerofapplicablePremiumsharing,subsidyportionandfarmer’s Contributionispresentedinthetabledistrict-wiseandcrop-wise.Inrespectofallthe notifiedcrops,thepremiumsubsidyistotheextentof50%,whichisequallysharedby theCentralandtheStateGovernmentsandwillbereleasedasupfrontpremiumsubsidy tosincetheriskinceptsonly uponreceivingthepremiumin fulli.e.,50%fromthefarmers and balance 50% assubsidycomponent.

 

Thepremium(farmer’sshare)shallberemittedthroughDemandDraftfavouring“AICof India,A/cno.008010200023922payableatHyderabad”.                        SeparateDemandDrafts need tobeobtainedforcoverageofLoanee andNon-loaneefarmers.

 

 

TABLE SHOWING THE PREMIUM SHARING PER HECTARE 
Nameof the Crop

 

S.Iper Hectare Rs./-  Actuarial Premium Rate  Premium Rs./-

 

Farmer Contribution Rs./-  Subsidyfrom State Govt. Rs./-  Subsidyfrom CentralGovt.Rs./-

 

Redchillyin Khammam and WarangalDist.  62,500

 

9.80%

 

6,125

 

3062.50

 

1,531.25

 

1,531.25

 

Cottonin Adilabad, Khammam, Warangal, Karimnagar dist.  50,000

 

9.80%

 

4,900

 

2,450.00

 

1,225.00

 

1,225.00

 

Cottonin Mahabubnaga rdist.  30,000

 

10%

 

3,000

 

1,500.00

 

750.00

 

750.00

 

Cotton in Nalgonda Dist.

 

26,000

 

9.80%

 

2,548

 

1,274.00

 

637.00

 

637.00

 

Oilpalmin KhammamDist.  50,000

 

9.90%

 

4,950

 

2,475.00

 

1,237.50

 

1,237.50

 

Sweet Lime in Nalgonda Dist.  40,000

 

9.90%

 

3,960

 

1,980.00

 

990.00

 

990.00

 

 

 

 

 

 

 

TABLE SHOWING THE PREMIUM SHARING PER ACRE

 

 

 

Nameof the Crop

 

Redchillyin Khammam, WarangalDist. Cottonin Adilabad, Khammam, Warangal, KarimnagarDist.

 

Cottonin Mahabubnagar Dist.

 

Cottonin Nalgonda Dist.

 

 

Oilpalmin KhammamDist.

 

 

Sweet Lime in Nalgonda Dist.

 

S.Iper        Actuarial Acre    Premium Rs./-              Rate

 

25,000             9.80%

 

 

20,000             9.80%

 

 

 

 

12,000            10.00%

 

 

 

10,400           9.80%

 

 

 

20,000             9.90%

 

 

 

16,000             9.90%

 

Premium Rs./-

 

 

2,450

 

 

1,960

 

 

 

 

1,200

 

 

 

1,019.20

 

 

 

1,980

 

 

 

1,584

 

Farmer Contribution Rs./-

 

1,225.00

 

 

980.00

 

 

 

 

600.00

 

 

 

509.60

 

 

 

990.00

 

 

 

792.00

 

Subsidyfrom State Govt. Rs./-

 

612.50

 

 

490.00

 

 

 

 

300.00

 

 

 

254.80

 

 

 

495.00

 

 

 

396.00

 

Subsidyfrom CentralGovt. Rs./-

 

612.50

 

 

490.00

 

 

 

 

300.00

 

 

 

254.80

 

 

 

495.00

 

 

 

396.00

 

 

  1. COMPENSATIONPAY-OUT:Pay-outcomputationwouldbebasedonthenotified weatherparametersandthedetailsoftriggersarespecifiedinthetermsheetasshownin item17.Maximumpay-outwill be limited toSum Insured.

 

TRIGGERWEATHER:TriggerWeatherispre-definedandbeingnotifiedasper annexurewithreferencetotheweatherparametersandReferenceUnitAreaasdetailed aboveandhasbeenfixedso,keepinginmindthebroadweatherparameterrequirement ofthenotifiedcropsindifferentmandalsinthenotifiedDistricts.                                                                                  Therelevantterm sheetsapplicablefortheselectedmandalsofthesaiddistrictsareannexedherewith (Annexure I.1toI.10)

 

13.     SUBMISSION&STORINGOFWEATHERDATA:Weatherdatawillbe provided byAutomaticWeatherStationssetupbyAndhraPradeshStateDevelopmental PlanningSocietyofplanningdept.ofGovt.ofAndhraPradeshtoAIConday todaybasis for theseason.

 

REFERENCEWEATHERSTATION:ThisreferstotheAutomaticWeatherStation operatingfortheparticularReferenceUnitAreai.e.,mandal(asdetailedinthe annexure)operatingfortherelevantReferenceUnitAreaforgeneratingtheWeather Dataduringthecurrentseason basedon which pay-outsareprocessed.

 

BACK-UPWEATHERSTATION:ItisasubstituteWeatherStationtobeusedonlyin casetheweatherdatafromthespecifiedReferenceWeatherStationforthecurrent seasonisunavailableforanyreason.NamesofbothReferenceandBack-upWeather Stationsaredetailedinannexure.

 

 

 

  1. PAY-OUT DISBURSEMENT:

 

(a)Pay-outswouldnormallybemadebyAICtotheNodalBanksinrespectofloanee and toinsurednon-loaneefarmerswho areenrolleddirectlyor throughotherchannels.

 

(b)SofarastheInsuredisconcerned,thePay-outprocedureshallbeautomatic;thatis tosay,Pay-outswouldbeautomaticallycomputedbyAIConthebasisofActual Weather DatareceivedandthePay-outwouldbeautomaticallycreditedtotheInsured’s BankAccount.

 

 

 

  1. ADMINISTRATIONOFTHE SCHEME:

 

TheSchemeshallbeadministeredbyAIConlyinallthenotifieddistrictsforthenotified cropsunderNCIP–WBCISforKharif2014season.

.

 

 

 

  1. PUBLICITY &AWARENESS:

 

Dept.ofAgriculture/Horticulturewouldtakeupwidepublicityandawarenesscampsin coordinationwithAICtopopularisetheschemeandmobilizecoverageofmaximum number ofloanee andnon-loaneefarmers.

 

 

  1. TERMSHEET:

 

Thetermsheetscontainthedetailsoftriggersforhightemperature,deficiencyinrainfalland excessrainfallwhereverapplicable.Therelevanttermsheetsareannexedherewith (Annexure I.1toI.10).

 

 

 

  1. LIMITATIONS & DISCLAIMERS:

 

(a)TheSchemeisNOTaYieldGuaranteeScheme,andisbasedon“AreaApproach”as opposedto“IndividualApproach”–wherebyassessmentofcompensationwouldbemadeon ReferenceUnitAreaBasisandnotonthebasisofeveryindividualinsuredwhomighthave suffereda loss:

 

(b)TheSchemeshallbenullandvoidandnobenefitshallbepayableintheeventofuntrueor incorrectstatements,misrepresentationoronnon-disclosureinanymaterialfactinthe proposalform/personalstatement/declarationandconnecteddocuments,oranymaterial informationhavingbeenconcealed,oraclaimbeingfraudulentoranyfraudulentmeansor devicesbeingusedbytheInsuredoranyoneactingonhisbehalftoobtainanybenefit under this Scheme.

 

(c)Whenever,anyclarificationinrespectofDeclarationssubmittedbyFIsissoughtbyAIC, thesame mustbe submittedwithintwo weeks.Thereafter,AIC is notunderobligation toaccept thesame,includingreopeningofclaims.Declarationsreceivedaftertheprescribedcut-off dateswillberejectedandtheresponsibility/liabilityforsuchproposalsrestswiththenodal banks/FIs.TheFIsshallonlyberesponsibleforallomissions/commissions/errors committedbythem.

 

(d)Further,theclaimsunderNationalCropInsuranceProgrammeWeatherBased CropInsuranceScheme(W.B.C.I.S)shallbesettledonthebasisoftheweatherdata furnishedbytheAPSDPS/StateGovt.MandallevelRaingaugeStations/IMD WeatherStations,forthenotifiedcrops&districtsandnotonthebasisof individualdeclarationofcropdamageAnnavariCertificate/Gazettenotification declaringtheareaDrought/Flood/Cycloneaffectedetc.,IssuedbytheGovernment.

 

 

 

 

Enclosures:

 

 

 

AnnexureI.1.atoI.10.i Annexure II.1 to II.10 Annexure III

Annexure IV AnnexureV AnnexureVI AnnexureVII AnnexureVIII

 

–TermSheetsfor theCrops/Districts beingnotified.

–Notified RUAs& List ofAWS/BWSfortheCrops/Districts. –WBCIS Proposal Form.

–WBCISDeclarationForm (Loanee).

–WBCIS Declaration Form (Non-loanee).

–WBCIS Declaration Form (InsuranceIntermediary). –ProformaofList ofCultivators–Loanee Farmers.

–Proforma ofList ofCultivators–Non-loaneeFarmers

 

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