Amid concerns over rising incidents of farmer suicides in the country, 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.
To be known as the Unified Package Insurance Scheme (Bhartiya Krishi Bima Yojana), the policy would flaunt nine features with mandatory crop insurance. 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 with all the key stakeholders.
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The move comes following the successful launch of mass banking, insurance and pension products over the past one year and amidst increasing reports of more and more farmers ending their lives due to indebtedness and other socio-economic issues.
The proposed policy packages various products like crop insurance, health cover, personal accident insurance, live stock/cattle insurance, insurance cover for agriculture implements like tractors and pumpsets, student safety insurance and of course, life insurance, says the draft.
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.
The scheme would be offered/ administered through general insurers on similar terms which are applicable on other social security covers with necessary approvals and allocation of area, it said.
The scheme shall be implemented through a multi-agency framework by implementing agency under the overall guidance and control of the Union agriculture & cooperation department, and the states concerned in coordination with various other agencies.
