Notes governing the financial implications for the government::
Originally the government’s annual liability on NAIS is Rs. 1,400 crores at 15%
penetration. Considering the increase in proposed premium rates payable by the farmer in the new scheme, the reduction in government’s liability is estimated at 25%
i.e., Rs. 350 crores on Rs 1,400 crores. The revised liabilities, therefore, are taken at
Rs. 1,050 crores as the base.
Lowering insurance unit to village panchayat level: A sample exercise was conducted a few years ago under CCIS, which broadly indicated an increase of about 35% for everyone level of reduction, i.e. from block / taluka to village panchayat. Therefore, overall increase in liabilities for major crops is estimated at 30%, resulting from lowering the
Insurance Unit (IU) to the village panchayat.
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