It is to provide comprehensive insurance coverage against crop loss.

It is compulsory for farmers availing crop loans for notified crops in notified areas and voluntary for non-loanee farmers.

Premium rate – There is no capping in premium and one premium rate on pan-India basis. It is 1.5%, 2% and 5% for all Rabi, Kharif and annual horticultural/commercial crops, respectively.

There is no upper limit on the government subsidy i.e the difference between premium and insurance charges paid by the farmer.

Losses covered – Non-Preventable risk such as Natural Fire, Storm, Hailstorm, Cycloneand Inundation has also been included as a localized calamity. Post Harvest losses also covered.

A cluster approach will be adopted under which a group of districts with variable risk profile will be allotted to an insurance company

Use of Remote Sensing Technology, Smart phones & Drones for quick estimation of crop losses to ensure early settlement of claims.

It differs from the previous schemes like National Agricultural Insurance Scheme (NAIS) and Modified NAIS (MNAIS) in the following ways

Premium ratesLowHigh 
Lower than even NAIS
One Season – One
Insurance Amount coverFull 
Capped Full
Localized Risk coverage NoHail storm
Land slide
Hail storm, Land slide
Post Harvest Losses
NoCoastal areas – for
cyclonic rain
Coastal areas – for cyclonic rain
and seasonal rain
Use of TechnologyYesIntendedMandatory