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Krishi Amdani Bima Yojana

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The Krishi Amdani Bima Yojana is also known as the national agricultural insurance scheme, written commonly (NAIS). This scheme was sponsored by the government and it was implemented as a measure to provide crop insurance throughout the country. The scheme was developed keeping in mind the objective of providing financial assistance to the farmers. This came in the country since the Rabi crop act took place in the year 1999 to 2000. This act was developed as a part of risk management wherein in the failure of crops of the farmers they would be provided financial assurance, the crops may fail due to natural calamities or other natural disasters are sometimes being eaten away by the pests. They may get destroyed and disrupt the livelihood of the farmers. The agency behind the implementation of this scheme was Agriculture Insurance Company of India, also referred by AIC.

What all is covered under the Krishi Amdani Bima Yojana? 

  1. The scheme would be availed by all types of farmers whether they may be no loanee or loanee. It would also not take into consideration the size of their holding. 
  2. All types of food crops including pulses millets as well as cereals and horticulture crops oil seeds would be incorporated in this scheme. The only condition is that an adequate amount of yield data should be available for a large number of years for these crops. The premium rates for these crops were set to be 2.5% for Kharif crops 2% for Rabi crops and a minimal 1.5% for wheat crop and in the case of horticulture crops, the rates which were to be charged were actuarial.
  3. The scheme was set to be operational based on the area approach. The area approach encompasses the defined areas for various crops gram panchayats, and circles of Monda’s blocks, which were all covered under this scheme.

Implementation of the Krishi Amdani Bima Yojana: 

In the present scenario, the scheme has been implemented in 24 states and is said to cover two union territories respectively. It has said to cover about 1930 lakh farmers in the area that has been included under this Krishi Amdani Bima Yojana Scheme is about 2919 lakh hectares in size. Also, in the last 25 crop seasons there has been a subsequent coverage in both the farmers and the area in this scheme a summation of about rupees 256065 crores has been provided to the farmers the premium that has been reported for the scheme is rupees 7565 crores which will benefit and give advantage of the insurance to about 518 lakh farmers

Features of the Krishi Amdani Bima Yojana:

Some of the major crops that have been incorporated in this scheme are the following 

  1. Oil Seeds
    Oil seeds include groundnut, Soybean, Safflower, Sesame as well as Niger, etc. 
  2. Food Crops: 
    The food crops are primarily inclusive of Wheat, Jowar, Maize, Cora, Green Gram, Black Gram, Red Gram, Gram, Moth, etc. 
  3. Annual Horticulture Crops:
    Commercial Crops are inclusive of Potato, Turmeric, Banana and Pineapple, Coriander and methi, Cotton as well as Sugarcane. So as a result of this a large number of crops were made a part of the Krishi Amdani Bima Yojana Scheme. 

Major Objectives of Krishi Amdani Bima Yojana Scheme:

There were the following objectives of this scheme;

  1. Stabilization in the farmers incomes during the years where natural calamities hit the crops or the crops would have been eaten away by the pest a large loss was incurred to the farmers which could be stabilized by providing financial help to them. 
  2. Since agriculture is a primary occupation in our country, therefore, this scheme would encourage the farmers by insuring them that they would not be at loss to adopt progressive farming practices. This would encourage the development of higher value inputs as well as development of technology in the agricultural domain.
  3. To provide financial support as well as insurance coverage to the farmers. 

Need of Krishi Amdani Bima Yojana:

  1. Minimize the Depth: In case the farmers lost their crops either due to being eaten away by the pests or due to the natural calamities outbreak. They would be able to repay their loans without having their lives disrupted. Crop insurance schemes would help them pay off their loans smoothly and in an easier manner. 
  2. Advancement in Technology: The insurance companies willing to provide money to the form would also educate the farmers about the reduction in the losses that are bought. Also provide new technology to advance the agriculture domain. 
  3. Income stability: This scheme would allow the farmers to manage as well as increase their price risks. 
  4. New Agricultural Practices: The farmers would be encouraged to adopt to new agricultural practices in order to increase the production in their crops and minimize the loss against the failures. 

Frequently Asked Questions on Krishi Amdani Bima Yojana:

Q1: When did the National Agricultural Insurance Scheme came into effect?


The NAIS came into effect through the nation in the years 1999-2000 Rabi season.

Q2: Define crop insurance.


The crop insurance is the safeguard provided against the lost of crops, which may be associated with some unforeseen circumstances, like natural disasters or pests.

Q3: Briefly indicates the types of Agricultural insurance.


There are following types associated with agricultural insurance : 

  • Animal agricultural insurance, 
  • Equipment insurance 
  • Agricultural and crops insurance 
  • Farm property insurance. 

Q4: State some of the problems of agricultural insurance?


Some of the problems associated with the agricultural insurance are : 

  • Data collection to a large extent
  • Adverse selection 
  • No support for the development of infrastructure 
  • Demand constraints and low incomes 
  • Post-disaster relief 
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Last Updated : 09 Nov, 2022
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