The working group on risk management in
The broad government’s financial implications of modified NAIS
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| The broad government’s financial implications of modified NAIS S.No Improved Features Likely liability 1 Governments revised liability for 1.8 crore farmers Rs. 1,050 crores 2 Governments liability of actuarial regime with insurance unit reduced to Village Panchayat for major crops (on an average 30% increase in claims pay-out) Rs. 1,365 crores 3 Above (2) + Average yield calculated by taking long term average of 10 years (on an average 15% increase in claims pay-out) Rs. 1,570 crores 4 Above (3) + Indemnity Limit of 90%, 80% & 70% in place of 90%, 80% & 60% (on an average 8% increase in claims pay-out) Rs. 1,700 crores 5 Above (4) + Coverage of prevented sowing risk (on an average 5% increase in claims pay-out) Rs.1,785 crores 6 Above (5) + Coverage of post harvest losses on account specified perils (on an average 2% increase in pay-out) Rs. 1,820 crores 7 Above (6) + on account payment based on rainfall parameter. Theoretically, no increase is expected in pay-out Rs. 1,820 crores 8 Above (7) + Individual assessment in case of localised calamities (on an average 0.5% increase in pay-out) Rs. 1,830 crores 9 Above (8) + cover of fruit crops and vegetables under separate scheme (estimated liability of Rs. 100 crores) Rs. 1,930 crores 10 Above (9) + Weather Insurance Pilot (estimated liability of Rs. 50 crores) Rs. 1,980 crores 11 Above (10) + Farm Income Insurance Pilot (estimated liability of Rs. 100 crores) Rs. 2,080 crores 12 Above (11) + Administrative liability of Rs. 165 crores towards cost of additional CCEs. Rs. 2,245 crores 13 The financial liabilities w.r.t. financing the ‘catastrophic’ claims for risky lines at Rs. 200 crores in the st Year Rs. 2445 crores 14 Above (12) + subsidy for livestock insurance (Rs. 283 crores in the first year) Rs. 2,728 crores |