To address the implementation issues of the NAIS, the government launched the Modified National Agriculture Insurance Scheme (MNAIS). Here are some features in contrast with the older NAIS.
- The Modified NAIS has more crops under its coverage than the NAIS
- The Modified NAIS does the calculation of premium on actuarial basis. This means that there is higher premium for riskier crops.Since a farmer would pay actuarial premium to insure his crops, the entire liability of claim is on insurer.
- Along with the Agriculture Insurance Company (AIC) of India, thePrivate sector insurers were also allowed to implement this scheme.The Private Player should have adequate infrastructure and experience and selected by the Government of India for implement the scheme.
- In the previous scheme, the state government had to notify the unit areas. In the MNAIS, the unit area was reduced and fixed to Gram Panchayat Area for major crops.
- The minimum indemnity level in previous scheme was 60%. In modified scheme it was made to 70%.
- The calculation of threshold yield was done in previous scheme on the basis of 5 years data, in the new scheme it has been made 7 years so that calculation becomes more precise.
The MNAIS envisages that loanee farmers, are to be covered compulsorily for at least equal to the amount of crop loan sanctioned/advanced for notified crops, which may extend upto the value of the threshold yield of the insured crop at the option of insured farmers. Where value of the threshold yield is lower than the loan amount per unit area, the higher of the two is sum insured. Maximum sum insured can be opted up to 150% of value of threshold yield/normal sum insured. Thus, it has been claimed that the modified NAIS has addressed many issues of the previous Scheme. Yet, we have to see about its success.
