Revenue Insurance Scheme for Plantation Crops
RISPC is also known as a Revenue Insurance Scheme for Plantation Crops. Basically, this scheme is launched to control the twin risk of weather and rising prices and there are various parameters. This scheme launch to protect growers of tea coffee rubber cardamom tobacco crops.
Duration of the Revenue Insurance Scheme for Plantation Crops
The duration of the scheme is one crop cycle. This has been committed from the year 2016 to 17.
Coverage of the scheme
- This scheme is applicable to the small growers of rubber tea and coffee crops. But this scheme is only applicable to mature standing crops only.
- However, for tobacco and cardamom is applicable for large and small Grover’s but farmer having 10 hectares or less than 10-hectare land. But this scheme only applies to mature standing crops only.
- The grower of these crops must register for the scheme with respect to commodity boards. However, comedy boards provide insurance for loans to the growers.
- The scheme is only for small growers. However large growers also participate in this scheme after paying the premium amount but they are not eligible for the premium subsidy.
- This scheme only implemented on a pilot basis which covers a district or seven States.
- This scheme will cover on the basis of the area approach in the selected districts.
- Commodity board salt with the state government and decide area as insurance unit. This insurance unit can be village/village panchayat or any other unit.
- Scheme cover yield losses and price fluctuation or both of them.
- The yield losses can happen due to natural disaster such as
- Fluctuation can be e happen due to international domestic price fluctuation.
List of pilot districts under revenue insurance schemes for plantation crops
|S.NO.||Crop||State||Pilot District||No.of growers (upto 10 Ha)||Area Covered (Ha)|
|2||Tea||Tamil Nadu||Coonoor (Nilgiris)||38311||27000|
|5||Tobacco||Andhra Pradesh||West Godavari||11424||24406|
|7||Cardamom (Large)||Sikkim||East Sikkim||5200||6204|
- Commodity boards start taking in meeting with state government and all stakeholders before 2 months of the crop season. After that commodity boards will release the notice and choose the insurance company’s top Life insurance period regarding the pilot scheme.
- Publicity to be done in all pilot districts with the help of electronic and print media, rower’s fair, exhibitions, SMS, short films, and documentaries, etc. The commodity board starts the collaboration with insurance companies and state governments to help to organize training/ workshops/ sensitization programs.
- The commodity board will provide 5 years of data to all insurance companies. After that, all insurance companies will calculate the current insurance scheme. The commodity board will not able to provide the last 5 year data then the next higher unit contiguous unit shall be given.
- The average price that has been decided by the insurance company is totally based on these factors
a. Average domestic auction
b. International auction
c. Last 5 year data
5. Indemnity for the calculation
Suppose average income is calculated – Rs2,00,000 per Ha.
Indemnity level 90%
Then sum insured = (Rs 2,00,000 * 90)/100= rs 180000/-
Premium quoted by Insurance Company =5% of sum insured (SI) =Rs 9000/-
If actual income =Rs 1,60,000/-
Claim amount payable to grower =Sum Insured minus actual income = Rs 1,80,000 -1,60,000 = Rs 20,000/Ha
6. The government of India is going to pay the insurance premium rate and the growers having a ratio of 75:15:10. If anyhow state government fails to pay a share of premium in the area which is covered by the scheme then the share of premium automatical increase to the extent.
7. Commodity board discuss with the state government to circulate complete information related to the crop season such as
d.Premium rates for farmers
f.Seasonality discipline (cut-off dates) for each activity etc.
Note – This information would be uploaded on the official website of the boards, State government, and all insurance companies.
8. Commodity boards will provide the complete time limit / Cutoff dates of the complete scheme.
a. Growers must submit their insurance proposal to the bank branches/PACS/ Regional offices of Commodity Boards etc;
b. consolidated proposals can be submitted by the Regional Offices of Commodity Boards/Bank branches/Primary Agriculture Cooperative Societies (PACS) to Commodity Boards/ Nodal Banks.
c. A complete proposal has been consolidated to insurance companies by commodity Board / Nodal Banks.
d. Commodity boards submitted yield/price data to the insurance company.
e. Settlement claim generated by the insurance company.
f. All details and beneficiary has been uploaded to the official website by the commodity boards and insurance company.
9. Growers will get a complete proposal from regional Offices/Designated Agencies of Commodity Boards/branches of designated Commercial Banks/Regional Rural Banks (RRBs)/Primary Agriculture Cooperative Societies (PACS).
10. 3 weeks’ time periods are required to settle a claim. This time period should be started from the fill date of receipt of yield from the CB. responsibilities of payment and all claim id totally depend on insurance companies.