The working group on risk management in

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wg11 risk

4.9.6. Recommendations
Table-16: Premium Subsidy Model for XI Plan period S. No Premium slab

4. Graded Percent basis This is a method, evolved by fine-tuning the percent method’,
and takes care of extreme variations in actuarial premium rates. In other words, the subsidy rate is lower for lower premium rates, gradually increasing the subsidy rate with increases in the premium rate. It combines the advantages, of both the percent method’
and premium capping method. The effectiveness of the method can be further improved, by fixing minimum and maximum premium rates for farmers.

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4.9.6. Recommendations:
After considering the huge differences in actuarial premium rates across crops and states,
and considering the pros and cons of various methods discussed above, the Working
Group recommends the graded percent method. The indicative subsidy levels recommended by the Working Group are given in Table below:
Table-16: Premium Subsidy Model for XI Plan period
S. No Premium slab

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