Unified Package Insurance Scheme (UPIS)/ Pradhan Mantri Fasal Bima Yojna (PMFBY)

General Provisions:

The UPIS will be implemented in 45 selected districts on Pilot basis from Kharif 2016 season. A farmer (both Loanee and Non- Loanee) can access to Banks whereas non-loanee farmer shall be covered through banks and/or insurance intermediaries.

UPIS contain total 7 Sections out of which Section 1 (PMFBY) is mandatory. However, farmers have to choose at least 2 other sections to avail the applicable subsidy under PMFBY section.

The cover will be for one full year except for section 1 (which will be bi-annual separately for Kharif and Rabi seasons) renewable from year to year.

If the farmer has already availed any insurance policy covering any of sections (2-6) and sum insured not less than as mentioned in the UPIS than they would be exempted from taking such section(s). .

 

Section 1: Crop Insurance (Pradhan Mantri Fasal Bima Yojna (PMFBY) / Weather Based Crop Insurance Scheme (WBCIS)

Pradhan Mantri Fasal Bima Yojna (PMFBY)

Objectives:

To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests & diseases.

• To stabilise the income of farmers to ensure their continuance in farming.
• To encourage farmers to adopt innovative and modern agricultural practices.
• To ensure flow of credit to the agriculture sector.

Beneficiaries: All farmers in the age 18 to 70 years.

Risks to be Covered: Following risks leading to crop loss are to be covered under the scheme :-

1. Yield Losses (standing crops, on notified area basis): Comprehensive risk insurance is provided to cover yield losses due to non-preventable risks, such as

• Natural Fire and Lightning
• Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado etc.
• Flood, Inundation and Landslide
• Drought, Dry spells
• Pests/ Diseases etc.

2. Prevented Sowing (on notified area basis): In cases where majority of the insured farmers of a notified area, having intent to sow/plant and incurred expenditure for the purpose, are prevented from sowing/planting the insured crop due to adverse weather conditions, shall be eligible for indemnity claims upto a maximum of 25% of the sum-insured.

3. Post-Harvest Losses: Coverage is available upto a maximum period of 14 days from harvesting for those crops which are kept in “cut & spread” condition to dry in the field after harvesting, against specific perils of cyclone / cyclonic rains, unseasonal rains throughout the country.

4. Localised Calamities: Loss / damage resulting from occurrence of identified localized risks i.e. hailstorm, landslide, and Inundation affecting isolated farms in the notified area.

Exclusions: Risks and Losses arising out of following perils shall be excluded:- War & kindred perils, nuclear risks, riots, malicious damage, theft, act of enmity, grazed and/or destroyed by domestic and/or wild animals, In case of Post–Harvest losses the harvested crop bundled and heaped at a place before threshing, other preventable risks.

Premium Subsidy Structure:

The rate of Insurance Charges payable by the farmer will be as per the following table:

S. No.	Season	Crops	Maximum Insurance charges payable by farmer (% of Sum Insured)
1	Kharif	Food & Oilseeds crops (all cereals, millets, & oilseeds, pulses)	2.0% of SI or Actuarial rate, whichever is less
2	Rabi	Food & Oilseeds crops (all cereals, millets, & oilseeds, pulses	1.5% of SI or Actuarial rate, whichever is less
3	Kharif & Rabi	Annual Commercial / Annual Horticultural crops	5% of SI or Actuarial rate, whichever is less 1

Sharing of Risk:

The liability of the Insurance companies in case of catastrophic losses computed at the National level for an agricultural crop season, shall be upto 350% of total premium collected (farmer share plus Govt. subsidy) or 35% of total Sum Insured (SI), of all the Insurance Companies combined, whichever is higher. The losses at the National level in a crop season beyond this ceiling shall be met by equal contribution (i.e. on 50:50 basis) from the Central Government and the concerned State Governments.

Weather Based Crop Insurance Scheme (WBCIS)

Objectives: Weather Based Crop Insurance Scheme (WBCIS) aims to mitigate the hardship of the insured farmers against the likelihood of financial loss on account of anticipated crop loss resulting from adverse weather conditions relating to rainfall, temperature, wind, humidity etc. WBCIS uses weather parameters as “proxy‟ for crop yields in compensating the cultivators for deemed crop losses. Payout structures are developed to the extent of losses deemed to have been suffered using the weather triggers.

Coverage of Farmers: Refer para II of OGs of PMFBY.

 Coverage of Crops:

1. Food Crops (Cereals, Millets and Pulses)
2. Oilseeds
3. Commercial / Horticultural crops

Weather Perils to be Covered:

Following major weather perils, which are deemed to cause “Adverse Weather Incidence”, leading to crop loss, shall be covered under the scheme:

1. Rainfall – Deficit Rainfall, Excess rainfall, Unseasonal Rainfall, Rainy days, Dry-spell, Dry days
2. Temperature– High temperature (heat), Low temperature
3. Relative Humidity
4. Wind Speed
5. A combination of the above
6. Hailstorm, cloud-burst may also be covered as Add-on/Index-Plus products for those farmers who have already taken normal coverage under WBCIS

 

Section 2: Personal Accident Insurance (Coverage as per Pradhan Mantri Suraksha Bima Yojana – PMSBY)

Details of Scheme: The scheme will be a one year cover, renewable from year to year, Accident Insurance Scheme offering accidental death and disability cover for death or disability on account of an accident.

Beneficiaries:

All farmers eligible for crop insurance under PMFBY/WBCIS in the age 18 to 70 years.

Benefits:

As per the following table (anyone will be applicable)

S.N.	Table of Benefits (anyone will be applicable)	Sum Insured
A.	Death	Rs. 2 Lakh
B.	Total and irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eye and loss of use of hand or foot	Rs. 2 Lakh
C.	Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot	Rs. 1 Lakh

Premium:

Rs.12/- per annum per member. The premium will be deducted from the account holder’s savings bank account through ‘auto debit’ facility in one installment within the cut off dates as mentioned under PMFBY. Master Policy Holder: As mentioned in PMSBY, Participating Bank will be the Master policy holder on behalf of the participating subscribers.

 

Section -3: Life Insurance (as per Pradhan Mantri Jeevan Jyoti Bima Yojna (PMJJBY)

Benefits: An assurance of Rs.2,00,000/- on death of the insured member is payable to the Nominee.

Beneficiaries: The savings bank account holder aged between 18 years and 50 years.

Premium:

Premium to be deducted from member’s SB Account. The premium is Rs.330/- plus Service Tax (if payable). Renewal premium is chargeable as per the rate decided from time to time on Annual Renewal dates.

Enrollment Modality / Period:

For new enrolments, the cover shall be provided for one year period starting from the date of enrolment or 1st June, whichever is later and the cover will end on next 31st May under PMFBY. New entrants into the eligible category from year to year or currently eligible individuals who did not join earlier shall be able to join in future years while the scheme is continuing.

 

Section 4: Building and Contents Insurance (Fire & Allied Perils)

The indemnity under this section is based on fixed sum Insured basis (maximum liability of the insurer will be sum insured or actual loss whichever is less) The Company will indemnify the Insured in respect of loss of or damage to the Buildings/ Contents whilst contained in the insured premises by:

1. Fire, Lighting, Explosion of gas in domestic appliances,
2. Bursting and overflowing of water tanks, apparatus or pipes,
3. Aircraft or articles dropped therefrom,
4. Riot, Strike, or Malicious damage
5. Earthquake, (Fire and / or Shock) Subsidence and Landslide (including Rockslide) damage
6. Flood, inundation, storm, tempest, typhoon, hurricane, Tornado or Cyclone.
7. Impact damage
8. Bush Fire File

Special Exclusions:

The Company shall not be liable in respect of:

1. Loss or damage by burglary and / or housebreaking or theft where any member of the insured’s family is concerned as principal or accessory
2. Loss of or damage to articles of consumable nature
3. Loss of or damage to money, securities, stamps, stamp collections, bullion, livestock, motor vehicles and pedal cycles
4. Loss of or damage to deeds, bonds, bills of exchange, promissory notes, shares and stock certificates, business books, manuscripts, documents of any kind, unset precious stones and Jewelry and Valuable
5. Wilful act or gross negligence of the Insured or his representatives
6. Terrorism

Benefits: An assurance of Rs.50,000 for building and Rs.20,000 for contents.

 

Section 5: Agriculture Pumpset Insurance (Upto 10 Horse Power)

The Insurance covers the Centrifugal pump sets (electrical and diesel) upto 10 Horsepower capacity which are used for agricultural purposes only.

Scope of Cover:

1. Fire & lightning
2. Burglary (due to violent forcible entry provided the pump set is kept in a locked enclosure).
3. Mechanical / electrical breakdown
4. Riot, Strike, malicious damage

Benefits: The Sum insured has been capped to Rs.25,000. Agriculture pump sets of age upto 7 year can be covered under this section.

Special Exclusion to Agricultural Pump set Insurance:

1. Normal wear & tear, gradual deterioration due to atmospheric condition or otherwise.
2. Wilful act or gross negligence of the Insured or his representatives.
3. Faults existing at the time of commencement of insurance and known to the Insured or his representative.
4. Loss or damage for which the manufacturer or supplier of pumpset is responsible either by law or under contract.
5. Cost of dismantling, transport to workshop and back as also cost of re-erection.
6. Loss due to floods

 

Section 6: Student Safety Insurance

Beneficiaries: Students (5-25 years), Parents (18-70 years)

S.N.	Contingency	Amount of Compensation
Part A	Accidental death	Rs. 50000 (parent/student)
Part B	Permanent total disablement	Rs. 50000 (student)
Part C	Loss of one limb/Eye	Rs. 25000 (student)
Part D	Accidental hospitalization	Rs. 5000 (student)

In case of death of Father or Mother, the Claim amount to be converted into Fixed deposit in the name of student till attainment of 18 year of age.

Exclusions:

Payment of compensation in respect of death or injury as a direct consequence of:

• Committing or attempting suicide or intentional self-injury.
• Being under the influence of intoxicating liquor or drugs.
• Engaging in aviation other than travelling as a bonafide passenger in any duly licensed standard type of aircraft anywhere in the world.
• Pregnancy or child birth.
• Veneral disease or insanity.
• Contracting any illness directly or indirectly arising from or attributable to HIV and/or any HIV related illness including AIDS and/or any mutant derivative or variation of HIV or AIDS.
• Committing any breach of law with criminal intent.

 

Section 7: Agricultural Tractor Insurance

This section will be provided as per the provisions, terms, exceptions, conditions and endorsements of standard Motor Insurance Policy related to Agriculture tractor and trailers Covers the insured against loss or damage to the Agriculture Tractor by fire, explosion, selfignition or lightning, burglary, housebreaking, theft, riot and strike, earthquake, fire and shock, inundation, typhoon, hurricane, storm, tempest, cyclone, hailstorm, frost, landslide/rockslides by accidental external means, malicious act, terrorism activity while in transit by road, rail, inland waterway. Also provides coverage against death or permanent disablement of the driver, due to an accident while driving the Tractor insured during any one policy period.

Subject to a deduction for depreciation at the rates mentioned below in respect of parts replaced: – For all rubber/nylon/plastic parts, tyres, tubes, batteries and air bags – 50% – For fibre glass components – 30% – For all parts made of glass – Nil – Rate of depreciation for all other parts including wooden parts will be as per the schedule.

Policy Exclusions:

1. Any accidental loss or damage and/or liability caused sustained or incurred outside the geographical area.
2. Any claim arising out of any contractual liability.
3. Any accidental loss or damage and/or liability caused sustained or incurred whilst the vehicle insured herein is
4. Being used otherwise than in accordance with the Limitations of Use (tractor as well as trailer can only be used for agriculture purpose)
5. Being driven by or is for the purpose of being driven by him/her in the charge of any person other than a Driver as stated in the Driver’s Clause.
6. Losses such as
7. Any accidental loss or damage to any property whatsoever or any loss or expense whatsoever resulting or arising there from or any consequential loss.
8. Any accidental loss damage or liability directly or indirectly caused by or contributed to by or arising from nuclear weapons material.
9. Any accidental loss or damage/liability directly or indirectly or proximately or remotely occasioned by, contributed to by or traceable to or arising out of or in connection with war, invasion, the act of foreign enemies, hostilities or war like operations (whether before or after declaration of war), civil war, mutiny, rebellion, military or usurped power or by any direct or indirect consequences of any of the said occurrences and in the event of any claim here under the insured shall prove that the accidental loss damage and/or liability arose independently of and was in no way connected with or occasioned by or contributed to by or traceable to any of the said occurrences or any consequences thereof and in default of such proof, the Company shall not be liable to make any payment in respect of such a claim.

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