Crop Insurance :: Sum Insured Limits & Premium Rates for Paddy

Crop Production
Crop Protection
Crop Improvement
Sustainable Agriculture
Organic Farming
Indigenous Farming

Weather
Soil
Water
Seed
Farm Enterprises
Nutrition
Post Harvest Technology
Bio Technology
Bio-Fuels

Working example of sum Insured and Premium

Sum Insured Limits & Premium Rates for Paddy / Rice

Example

Farmer ‘‘An" a Loanee farmer and farmer "B" a non-loanee farmer each own 1 hectare under "Paddy / Rice" cultivation. (Being Small and Marginal Farmers they are eligible for 50% subsidy in premium).

Farmer "A" (Loanee)	Farmer "B" (Non-loanee)
Amount of Loan	Rs. 15,000	Nil
Amount of Coverage	Rs. 20,000	Rs.16,000
Applicable Premium rate	2.5% (normal rate) upto Rs. 15,000	2.5% (normal rate) upto Rs. 14,200
Applicable Premium rate	3.55 % (actuarial rate) for balance Rs. 5,000	3.55% (actuarial rate) for balance Rs. 1,800/-
Full Premium amount	Rs. 375.00 at normal rate + Rs. 177.50 at actuarial rate i.e. Rs. 552.50 in all.	Rs. 355.00 at normal rate + Rs. 64 at actuarial rate i.e. Rs.419 in all.
Subsidy	50% of full premium I.e. Rs. 276.25	50% of full premium I.e. Rs. 209.50
Net Premium Payable	Rs. 276.25	Rs. 209.50