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 |
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 |
|
Required Forms
· Decleration Form for Loanee Farmers
· Decleration Form for Non-Loanee Farmers
· Proposal Form for Non-Loanee Farmers
· Registers/ Statements showing details of Crop insurance under NAIS |
