an actuarial regime, in which, the insurance company receives premium based on commercial rates and is responsible for all claims. It has advantages for all concerned –
1. risk transfer through international reinsurance. the government would be able to budget its expenditure accurately and
at the beginning of the year, as it would relate to only premium subsidy. the implementing agency has an incentive to be accountable and professional in administering the scheme. farmers would receive claims early, with settlement by the implementing agency without having to wait for receipt of funds from the government.
Under
the proposed arrangement, the government would decide the premium payable by the farmer, and the difference between the actuarial rates (charged at state level) and the
rates payable by the farmer, would be borne by the government. The Joint Group recommended that the premium subsidy may range from 25% to 75% (subject to a maximum net premium of 8%), at different slabs of actuarial premium.
Working Group, urges the government to consider channelising at least a portion of theagricultural relief and other related funds, through crop insurance, as the efficiency ofShare with your friends: 
