Tractor Insurance

Government to launch Unified Insurance for Farmers

The Narendra Modi-led government is planning to unveil an exclusive all-in-one insurance product for the farming community as part of its ongoing social security scheme.

Nine features will be included in this Unified Package Insurance Scheme-Bhartiya Krishi Bima Yojana. However, farmers have to choose at least four other features to avail subsidy under crop insurance section, according to a draft prepared by the Finance Ministry. The draft report is at discussion stage.

This insurance policy will cover crop insurance, health cover, personal accident insurance, live stock/cattle insurance, insurance cover for agriculture implements like tractors and pumpsets.

The scheme aims at providing financial protection to farmers, thereby ensuring food security, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting farmers from financial risks, says the draft.

The cover will be for one-year except for agriculture insurance (which will be bi-annual separately for Kharif and Rabi crops) and will be renewable from year to year.

This agriculture insurance will cover other subsidies such as compensation to farmers suffering loss due to crop loss/damage arising out of unforeseen events etc.

Those farmers who have taken bank credit will be covered through banks/financial institutions whereas non-loan farmers shall be covered through banks or insurance intermediaries.

The policy is designed to take care of the insurance needs of farmers associated with agriculture activities and it also provides yield based crop insurance to the farmer based on his ownership rights of land and sown crop, says the draft.

Moreover, the policy also provides protection to farmers and their family members in case of the accidental death/disablement, hospitalization due to illness and accidental insurance protection of their school/ college going children and providing for education fee to students in case of death of the parent. Moreover, it provides life insurance cover to farmers and their family members, says the draft.