(f) Compulsory nature of Scheme:
The existing scheme is compulsory for farmers who avail loans for raising insurable notified crops instates where the scheme is implemented. On account of the high premium rates, for certain annual commercial / horticultural crops, and certain areas and crops for which no claims have been received, largely due to good crops, there has been a suggestion to make the scheme voluntary. The idea was to leave the decision of participation to farmers.
The Working Group, however feels that considering crop insurance awareness in the country is low, and that the scheme is highly subsidized, it should continue to be compulsory for all loanee farmers. Mandatory insurance also encourages banks to lend more in the agriculture sector.
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