The coverage of farmers under Weather Based Crop Insurance Scheme (WBCIS) has gone up from 35 thousand in Kharif 2007 to 61.6 lakh in Kharif 2011. Claims worth Rs. 972 crore have been settled so far. The overall coverage under the scheme is 1.95 crore farmers over an area of 2.78 crore hectares.
The scheme has been implemented since Kharif 2007. During the last five years, i.e. 2007-08, 2008-09, 2009-10, 2010-11, and 2011-12 till 27.1.2012 Rs 69.19 crore, Rs. 100.00 crore, Rs.120.00 crore, Rs. 450.00 crore, and Rs. 442 crore respectively have been released as Central Government’s share towards subsidy for premium provided to the farmers.
WBCIS is intended to provide insurance protection to the farmers against adverse weather incidence, such as deficit and excess rainfall, high or low temperature, humidity etc. which are deemed to impact adversely the crop production. It has the advantage of settling the claims within shortest possible time. It is based on actuarial rates of premium but to make the scheme attractive, the premiums actually charged from farmers have been restricted to and made at par with NAIS. The difference between actuarial rates and premium actually paid by farmers are borne by the Government (both Centre and State concerned on 50:50 basis). Besides this a cap on premium payable by farmers for annual commercial/horticultural crops has been provided.
To provide competitive service to the farmers, private insurance companies i.e. ICICI-Lombard, IFFCO-TOKIO and M.S Cholamandalam General Insurance Companies have also been involved for implementation besides Agriculture Insurance Company of India (AIC).