ANDHRA PRAGATHI GRAMEENA BANK HEAD OFFICE :: KADAPA IMPLEMENTATION OF NATIONAL AGRICULTURAL INSURANCE SCHEME (NAIS) FOR KHARIFF 2008 SEASON GUIDELINES

Transcription

1 ANDHRA PRAGATHI GRAMEENA BANK HEAD OFFICE :: KADAPA Circular No BC-CD Date: IMPLEMENTATION OF NATIONAL AGRICULTURAL INSURANCE SCHEME (NAIS) FOR KHARIFF 2008 SEASON GUIDELINES The Agriculture Insurance Company (AIC) of India Limited, Regional Office, Hyderabad, vide their lr.no. NAIS:NOTIF:KH :08, dt has communicated the guidelines (received by us on ) on the implementation of National Agricultural Insurance Scheme (NAIS) for Khariff 2008 season i.e. loans disbursed from to by the Banks, for all districts and crops except in Prakasam and Nellore for which it is to as approved by the State Level Coordination Committee on Crop Insurance (SLCCCI), Hyderabad. The details of guidelines issued are furnished here below for the implementation of the NAIS by our branches / societies in Khariff Insurance coverage is compulsory for all loanee farmers availing Seasonal Agricultural Operations (SAO) loans for notified crops in notified areas upto the full loan amount. All Pragathi Kisan Credit Card (PKCC) loans are eligible for coverage as per guidelines given in this circular. The Non-loanee farmers at their option can avail coverage under NAIS at their option by submitting proposal as per prescribed format at any service area branch / society within the cut-off date given in this circular. IMPORTANT: GOVT. OF A.P. NOTIFIES VILLAGE AS INSURANCE UNIT FOR SELECT CROPS IN ANANTHAPUR, KADAPA, KURNOOL, NELLORE & PRAKASAM DISTRICTS. The Govt. of Andhra Pradesh notified the implementation of National Agricultural Insurance Scheme (NAIS) taking Village as Insurance Unit on pilot basis during Khariff 2008 in the following Districts and Crops mentioned against each: S.No. Name of the District Crops 1 Ananthapur Ground Nut (un-irrigated) 2 Kadapa Ground Nut (un-irrigated) 3 Kurnool Ground Nut (un-irrigated) 4 Nellore Paddy 5 Prakasam Paddy Branches and societies are advised to prepare revenue village wise crop insurance statements (ARM-4) for the above mentioned crops and Mandal wise crop insurance statements (ARM-4) for crops other than the above. Contd 2

2 GUIDELINES: : 2 : 1. Premium computation should be done accurately, as per the applicable rates given in this circular. Branches should allow premium subsidy of 10% in respect of small and marginal farmers, both for Loanee and Non-Loanee categories. Remittance of excess premium shall not entitle for increase in sum insured at a later date and refund of such excess remittances shall be solely at the discretion of Agriculture Insurance Company of India Limited (AIC). 2. In Ananthapur, Kadapa and Kurnool districts, for Groundnut (un-irrigated) crop, the loaning period eligible for coverage is from to only. 3. Based on statements received from branches / societies, the concerned Regional Office shall consolidate the particulars, prepare Declarations and submit to AIC of India Ltd. Only one consolidated statement (ARM-4) for one crop per Village / Mandal per month should be submitted for each category i.e. Loanee and Nonloanee farmers. PREMIUM SHOULD BE REMITTED THROUGH SINGLE DEMAND DRAFT FOR ONE LOT OF DECLARATIONS FAVOURING AIC OF INDIA, AXIS BANK A/C No PAYABLE AT HYDERABAD. However, separate DDs should be drawin for Loanee and Non-Loanee farmers for each season. 4. Care should be taken to furnish complete and accurate information in the crop insurance statement (ARM-4) with respect to village, mandal, crop, sum insured, etc. in each month. 5. CROP SOWN AREA SHOULD BE REPORTED IN HECTARES ONLY, IN THE ARM-4 STATEMENT (1 Hectare = 2.5 acres). 6. Care should be taken to mention crop name as GROUNDNUT (IRRIGATED), GROUNDNUT (UN-IRRIGAGED), COTTON (IRRIGATED), COTTON (UN- IRRIGATED), RED CHILLIES (IRRIGATED), RED CHILLIES (UN-IRRIGATED), SUGARCANE (PLANT) and SUGARCANE (PLANT) and SUGARCANE (RATOON) failing which declarations will not be accepted and shall be returned to the respective branch / society. 7. Guidelines for coverage of Pragathi Kisan Credit Cards (PKCC) loans under NAIS: While issuing Pragathi Kisan Credit Cards, the branches shall specify crop-wise and season-wise sub limits sanctioned on the card. Credit limit for other purposes, if any, need also to be specified on the card. Since crop insurance premium rating and claims settlement are crop and season specific, while withdrawal of credit by the farmer, branches shall ensure the purpose i.e. crop, acreage and season for which the credit is withdrawn by the farmer. Contd 3

3 : 3 : Loans under Pragathi Kisan Credit Cards shall be covered on the basis of actual withdrawals (and not on the basis of sanctioned limits under the card) and normal coverage during a particular season under the card shall not exceed the crop wise sub limit specified. Farmers desiring coverage of higher sum insured beyond the loan amount, as permissible under the scheme, shall do as per the seasonality discipline applicable for non-loanee farmers. The State Level Coordination Committee on Crop Insurance can specify an alternative seasonality discipline (truncating the period of withdrawals eligible for coverage) during periods of calamities to discourage exploitation of the scheme provisions. Separate crop insurance declarations may be submitted for Pragathi Kisan Credit loans and regular crop loans. Coverage of insurance can also be extended to crop loans disbursed through Rythu Mitra Groups. 8. Guidelines for covering Notified Crops of Non-loanee Farmers (each paper shall be submitted in duplicate): OPTIONAL COVERAGE: The Non-Loanee farmers at their option can avail coverage for notified crops under NAIS by submitting a completely filled proposal form along with Date of Sowing Certificate, duly filled in by the farmer and certified by Village Agricultural Officer / Village Secretary. The branches / societies while accepting the non-loanee proposal form should invariably obtain the Date of Sowing Certificate from the farmer, duly certified by the Village Secretary / Village Agriculture Officer. The age of the crop on the date of submitting the proposal should be less than ONE MONTH from the date of sowing. Non-loanee farmer desiring coverage under NAIS should have a Savings Bank Account in the branch where the proposal is submitted. The crop insurance declarations for non-loanee farmers should be submitted only in the form prescribed for non-loanee farmers and should be accompanied by a separate Cr.IBA towards premium, a separate statement giving month-wise / mandal-wise / crop-wise / non-loanee farmer-wise details of coverage, copies of proposal forms and copies of farmer-wise date of Sowing Certificate. The specimen formats of non-loanee proposal form, date of sowing certificate, statement showing month-wise / mandal-wise / crop-wise / non-loanee farmer-wise details, are enclosed, for the use of branches. Contd 4

4 : 4 : The cut-off date for submission of proposals by non-loanee farmers to branches is 31 st December 2007 and for submission of ARM-4 by the branches to Regional Office is 5 th January AIC reserves the right to verify all the non-loanee records, if deemed necessary. I. NOTIFIED CROPS, MANDALS, Etc. The scheme continues to be implemented during Khariff 2008 and the insurance coverage is available for both the Loanee and Non-Loanee farmers. The insurance coverage is compulsory for all Loanee farmers availing loans during Rabi for notified crops in notified Mandals upto the full loan amount. The details of notified crops and mandals are given below: Name of the Notified Notified Crops District Mandals ANANTHAPUR All Mandals 1) Paddy 2) Jowar 3) Bajra 4) Redgram 5) Groundnut (irrigated) 6) Cotton (un-irrigaged) 7) Groundnut (un-irrigated)* 8) sunflower 9) Red Chillies 10) Maize KADAPA All Mandals 1) Paddy 2)Groundnut (irrigated) 3) Groundnut (un-irrigated)* 4) Sunflower 5) Jowar 6) Redgram 7) Cotton (irrigated) 8) Cotton (un-irrigated) 9) Bajra 10) Turmeric. KURNOOL All Mandals 1) Paddy 2) Groundnut (irrigated) 3) Groundnut (un-irrigated)* 4) Sunflower 5) Jowar 6) Redgram 7) Cotton (irrigated) 8) Cotton (un-irrigated) 9) Bajra 10) Red chillies (irrigated) 11) Red chillies (unirrigated) & 12) Castor. NELLORE All Mandals 1) Paddy * 2) Bajra 3) Groundnut (irrigated) 4) Sugarcane (Plant) 5) Sugarcane (Ratoon) PRAKASAM All Mandals 1) Paddy * 2) Groundnut (un-irrigated) 3) Maize 4) Redgram * 5) Cotton (irrigated) 6) Cotton (unirrigated) 7) Bajra 8) Red chillies (irrigated) 9) Red chillies (un-irrigated) 10) Castor. (* UNDER VILLAGE AS INSURANCE UNIT) Contd 5

5 : 5 : II. INSURANCE PREMIUM COMPUTATION: Notified Crop Normal Coverage Per Hectare (Upto Value of Threshold Yield) Sum Insured Normal Premium Rate (in %) Additional Coverage Per Hectare (Beyond Value of threshold yield and upto 150% of value of average yield) Sum Insured Actuarial premium rate (in %) Maximum coverage (per Hect.) Sum Insured A C D E F G = (C+E) PADDY JOWAR BAJRA MAIZE BLACK GRAM GREEN GRAM RED GRAM GROUNDNUT (irrigated) GROUNDNUT (unirrigated) CASTOR SOYBEAN SUNFLOWER SUGARCANE (plant) SUGARCANE (Ratoon) COTTON (irrigated) COTTON (Unirrigated) RED CHILLIES (Unirrigated) BANANA TURMERIC Note: Normal premium rates are not applicable for Annual Commercial / Annual Agricultural Crops. Contd 6

6 : 6 : 1. Normal Coverage: Sum Insured (i.e. part-a of loanee and non loanee declaration formats): a) Compulsory coverage of full loan amount for loanee farmers. b) Optionally upto the limit as per Col. C in case of non-loanee farmers. c) Normal premium rates as per Col. D shall be applicable. 2. Extended Coverage: Sum Insured (i.e. Part-B of loanee declaration format): a) Coverage is optional upon submission of a proposal before b) If the loan amount is less than the value of Threshold Yield i.e. Col. C, extended coverage will be beyond loan amount upto the limit as per Col. C. c) Normal premium rates as per Col. D shall be applicable. 3. Additional Coverage: Sum Insured (i.e. Part-C of loanee and Part-B of non loanee declaration format): a) Coverage is optional upon submission of a proposal. b) Beyond Normal and / or Extended coverage and upto 150% of value of average yeield i.e. upto the maximum limit as per Col. G. c) Acturial Premium Rates as per Col. F shall be applicable. III. TYPES OF COVERAGE, PREMIUM & SEASONALITY DISCIPLINE: The following table contains the coverage, seasonality discipline, cut-off date for submission of statements to Head Office etc. Contd 7

7 : 7 : Crop Paddy, Jowar, Maize, Red Gram, Black Gram & Green Gram Castor, Bajra, Sunflower & Groundnut (Irrigated) Cotton (irrigated) Cotton (unirrigated) Red chillies (irrigated) Red chillies (un-irrigated) Premium Rates (%) Loaning period eligible for coverage 2.50 Loans disbursed beween to for Kadapa, Turmeric 6.25 Groundnut (unirrigated) Sugarcane (Plant) Sugarcane (Ratoon) Ananthapur and Kurnool districts. For Prakasam and Nellore districts to Loans disbursed between to for Kadapa, Ananthapur and Kurnool districts and between to for Prakasam district Loans disbursed between to for NELLORE district. Final cut-off date for submission of statements to concerned ROs for Kadapa, Ananthapur and Kurnool districts and for Prakasam & Nellore districts it is Branches should ensure to submit statements to concerned ROs within the due daes without inviting any reminders. If any claim is refused by the AIC due to delay caused in submission of the crop insurance statement/s by any branch / society, the concerned Manager and Officer (Adv.) / MD will be held personally responsible for all the consequences that may arise. Hence, ARM-4 for April, May June and July 2008 should reach concerned ROs by without fail and ROs shall submit the consolidated crop insurance statements to AIC by for Kadapa, Ananthapur and Kurnool Districts and for Prakasam & Nellore Districts it is Branches should ensure to submit statements to concerned ROs within the due dates without inviting any reminders. If any claim is refused by the AIC due to delay caused in submission of the crop insurance statement/s by any branch / society, the concerned Manager and Oficer (Adv.)/MD will be held personally responsible for all the consequences that may arise. Hence, ARM-4 for April, May, June and July 2008 should reach concerned ROs by without fail and ROs shall submit the concolidated crop insurance statements to AIC by IV OTHER GUIDELINES: 1) While submitting the crop insurance statement (ARM-4) to concerned RO, branches / societies shall mention the name of the village / mandal where lands are located as notified village / mandal. 2) Branches / Societies are advised to submit the NIL statement under crop insurance for April 2008 if they have no transactions (before guidelines) 3) The premium has to be debited as and when the loan is disbursed. Contd 8

8 : 8 : 4) Loan insured and premium debited should be based on actual disbursement and not on credit limit. 5) Premium computation should be done accurately, as per the applicable rates given in this circular. Branches / Societies should allow premium subsidy of 10% in respect of Small and Marginal Farmers both for Loanee and Non Loanee farmers. Strictly follow the scale of finance and land holdings of small / marginal and other farmers. I) SMALL FARMER: A cultivator with a land holding of 2 hectares (5 acres) or less, as defined in the land ceiling legislation of the concerned State / UT. II) MARGINAL FARMER: A cultivator with a land holding of 1 hectare or less (2.5 acres. 6) Avoid wrong declaration of name of crop, Mandal, etc. Land s location must be taken into account while preparing the crop insurance statement. Borrower residential address should not be taken into account while reporting the information in the crop insurance statements. 7) A) Submit ARM-4 (crop insurance) statements for crop wise, Mandal wise and month wise, separately for Loanee and Non Loanee farmers. B) The ARM-4 (crop insurance) statements for Groundnut (un-irrigated) crop in case of Ananthapur, Kadapa and Kurnool districts and for Paddy crop in case of Nellore and Prakasam districts shall be prepared revenue village wise with mandal name and submit to concerned ROs. 8) Premium should be remitted through single Cr.IBA for each month for loanees and non-loanees separately. 9) Agricultural Jewel Loans are not eligible to cover under NAIS. 10) The cut-off date for submission of proposals by non-loanee farmers to branches is 31 st July 2008 and branches should submit the same to concerned ROs by All the branches / societies are advised to go through the above guidelines very carefully and implement the same correctly, without any deviations and submit the statement (ARM-4) to Regional Office every month as per schedule to the concerned Regional Office on or before 5 th of succeeding month. It may be noted that any mistakes committed in the collection of premium or in preparation of crop insurance statement or delay in submission of statements will result in loss to the farmers for which the Manager / Officer (Adv.) / Managing Director concerned will be held personally responsible and made accountable. Hence branches / societies are once again advised to follow the guidelines carefully and act accordingly. Clarifications, if any, on this circular, may be sought from HO-Credit Department, Kadapa. (M.JAI PRAKASH) CHAIRMAN

9 Enclosure to Circular No BC-CD Date: ANDHRA PRAGATHI GRAMEENA BANK Branch STATEMENT OF MONTH WISE / MANDAL WISE / CROP WISE NON-LOANEE DETAILS BRANCH: REGION: SEASON: KHARIFF 2008 MONTH: CROP: DISTRICT: MANDAL: S. No. Name of Farmer (Full Surname & name) Father s Name (Full Surname & name) Survey No. Name of Village Area in Hectares Sum Insured SB A/c No. Date of premium paid to Bank Date: OFFICER (Adv.) MANAGER

10 Enclosure to Circular No. Circular No BC-CD Date: NATIONAL AGRICULTURAL INSURANCE SCHEME (NAIS) CROP & AREA SOWN CONFIRMATION CERTIFICATE (to be issued by Revenue / Agriculture Department Govt. Official) IT IS HEREBY CERTIFIED THAT I) Sri (full surname and name) son of Sri (full surname and name ) a resident of village of actually sown the crop/s in the below mentioned Survey Number/s and II) The condition of the crop/s at the time of issuing the ceritificate is SATISFACTORYAND III) The fileld verification was done by me and the information furnished below is correct and as per records. Village & Mandal Survey Number Total holding Name of the crop Area under the crop in hectares Date of sowing the crop Name of the Certifying Official: Designation: Office / Address: Date: Signature of Agriculture Officer / Village Secretary certifying the above details DECLARATION BY FARMER I HEREBY DECLARE THAT I) this certificate is obtained by me for the purpose of crop insurance coverage under NAIS as a non-loanee farmer and II) that I have not availed crop loan for the above crop/s as Loanee Farmer and III) I shall attach this original certificate with the crop insurance proposal to be lodged at A.P.G.Bank, Branch / Rayalaseema Farmers Service Cooperative Society (RFSCS) Ltd. as per service area approach and IV) that I have not insured above crop / area in any other Bank / FSCS. Place: farmer Date: Signature / Thumb impression of the SB A/c No. Address:

11 Enclosure to Circular No. Circular No BC-CD Date: PROPOSAL FORM FOR NON-LOANEE FARMER - NATIONAL AGRICULTURAL INSURANCE SCHEME DISTRICT: NAME OF THE BANK: SEASON: BRANCH: ACCOUNT No.: PROPOSAL FORM No.: (to be filled by the bank) NAME OF THE FARMER ADDRESS OF THE FARMER TOTAL LAND HOLDING: NAME OF THE DEFINED AREA (MANDAL): CROP SURVEY NO. AREA (IN HECT) Scale of Finance (per Hect) SUM INSURED Upto value of T.Y. (A) Beyond value of T.Y. (B) PREMIUM RATE (%) TOTAL PREMIUM PREMIUM SUBSIDY (if eligible) NET PREMIUM (A) (B) (A) (B) (A) (B) (A) (B) FOR BANK S USE (PROOF CONFIRMING STATUS OF SMALL & MARGINAL FARMER NEED TO BE ENCLOSED TO BE ELIGIBLE FOR SUBSIDY) I hereby declare that the provisions of the scheme have been read and understood by / explained to me in detail before completing the proposal form. I hereby further declare that the particulars furnished above are true and correct and the age of crops proposed for insurance under this proposal is not more than one month at the time of submission of proposal. Further, the condition of crops proposed for insurance under this proposal is normal as on date. I have not submitted any other crop insurance proposal covering the above mentioned crops during the season under the scheme either through this bank branch on Primary Agrl. Cooperative Society (PACS) or any other bank branch or PACS. Date: Place: (SIGNATURE / THUMB IMPRESSION OF THE FARMER)