ANDHRA PRAGATHI GRAMEENA BANK HEAD OFFICE :: KADAPA Cir. No. 133-2007-BC-CD Date : 11.7.2007 --------------------------------------------------------------------------------------------------- IMPLEMENTATION OF NATIONAL AGRICULTURAL INSURANCE SCHEME (NAIS) FOR KHARIF 2007 SEASON GUIDELINES --------------------------------------------------------------------------------------------------- The Agriculture Insurance Company (AIC) of India Limited, Regional Office, Hyderabad, vide their lr. No. NAIS:NOTIF:KH 2007:927:07, dt. 29.6.2007 has communicated the guidelines (received by us on 5.7.2007) on the implementation of National Agricultural Insurance Scheme (NAIS) for Kharif 2007 season i.e. from 1.4.2007 to 30.9.2007 by the Banks, 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 Kharif 2007. 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 ANANTAPUR, KADAPA, KURNOOL & 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 Kharif 2007 (on the same lines of Kharif 2006) in the following Districts and Crops mentioned against each: Sl. No. Name of the District Crops 1 Anantapur Ground Nut (un-irrigated) 2 Kadapa Ground Nut (un-irrigated) 3 Kurnool Ground Nut (un-irrigated) 4 Prakasam Red Gram 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. 2
Cir. No. 133-2007-BC-CD, dt. 11.7.2007 2 GUIDELINES : 1. Premium computation should be done accurately, as per the applicable rates given in this circular. Branches should allow premium subsidy of 10% only 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 Ltd. (AIC). 2. In Anantapur, Kadapa and Kurnool districts, for Groundnut (un-irrigated) crop, the loaning period eligible for coverage is from 1.4.2007 to 31.8.2007 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 Non-loanee farmers. PREMIUM SHOULD BE REMITTED THROUGH SINGLE DEMAND DRAFT FOR ONE LOT OF DECLARATIONS FAVOURING AIC OF INDIA, UTI BANK A/C. NO. 008010200023922 PAYABLE AT HYDERABAD. However, separate DDs should be drawn 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-IRRIGATED), COTTON (IRRIGATED), COTTON (UN-IRRIGATED), RED CHILLIES (IRRIGATED), RED CHILLIES (UN-IRRIGATED), 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 (PKCCs) loans under NAIS: While issuing PKCCs, 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...3
Cir. No. 133-2007-BC-CD, dt. 11.7.2007 3 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. Loans under PKCCs 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 so 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 PKCC 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..4
Cir. No. 133-2007-BC-CD, dt. 11.7.2007 4 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. The cut-off date for submission of proposals by non-loanee farmers to branches/societies is 31 st July 2007 and for submission of ARM-4 by the branches/societies to RO is 10 th August 2007. AIC of India Ltd. 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 Kharif 2007 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 Kharif 2007 for notified crops in notified villages/mandals upto the full loan amount. The details of notified crops and mandals are given below. Name of the District ANANTAPUR KADAPA KURNOOL NELLORE PRAKASAM Notified All All All All All Notified Crops (1) Paddy (2) Jowar (3) Bajra (4) Redgram (5) Groundnut (irrigated), (6) Cotton (un-irrigated) (7) Groundnut (un-irrigated)*, (8) Sunflower (9) Red Chillies (irrigated) and (10) Maize Paddy (2) Groundnut (irrigated) (3) Groundnut (un-irrigated) * (4) Sunflower (5) Jowar (6) Redgram (7) Cotton (irrigated) (8) Cotton (un-irrigated) & (9) Bajra (1) Paddy (2) Groundnut (un-irrigated) * (3) Groundnut (irrigated) (4) Sunflower (5) Jowar (6) Redgram (7) Cotton (irrigated) (8) Cotton (un-irrigated) (9) Bajra (10) Redchillies (irrigated) (11) Redchillies (un-irrigated) & (12) Castor (1) Paddy (2) Bajra (3) Groundnut (irrigated) (4) Sugarcane (Plant) & (5) Sugarcane (Ratoon) (1) Paddy (2) Groundnut (un-irrigated) (3) Maize (4) Redgram * (5) Cotton (irrigated) (6) Cotton (un-irrigated) (7) Bajra (8) Redchillies (irrigated) (9) Redchillies (un-irrigated) (10) Castor (* UNDER VILLAGE AS INSURANCE UNIT)..5
5 Cir. No. 133-2007-BC-CD, dt. 11.7.2007 II INSURANCE PREMIUM COMPUTATION: Crop wise levels of indemnity, limits of sum insured and applicable premium rates are furnished in the following table. Notified Crop Level of Indemnity Normal coverage per hectare (upto value of Threshold Yield) Sum Insured Normal Premium Rate Additional coverage per hectare (beyond value of Threshold Yield and upto 150% of value of Average Yield) Sum Insured Actuarial Premium Rate Maximum Coverage (per hectare) Sum Insured (Rs.) (in %) (Rs.) (in %) (Rs.) A B C D E F G = (C+E) PADDY 80% 19000 2.50 16600 4.10 35600 JOWAR 60% 3800 2.50 5700 5.70 9500 BAJRA 80% 3900 3.50 3400 6.05 7300 MAIZE 60% 9100 2.50 13800 3.80 22900 BLACK GRAM 60% 4400 2.50 6600 9.25 11000 GREEN GRAM 60% 3500 2.50 5400 11.00 8900 GROUNDNUT 60% 5100 3.50 7500 16.80 12600 (un-irrigated) GROUNDNUT (irrigated) 60% 11100 3.50 16700 5.85 27800 REDGRAM 60% 3900 2.50 5700 10.95 9600 CASTOR 60% 3400 3.50 5200 10.30 8600 SUNFLOWER 60% 5000 3.50 7500 6.20 12500 ANNUAL COMMERCIAL/ANNUAL HORTICULTURAL CROPS : SUGARCANE (Plant) 90% - - - 3.35 94100 SUGARCANE (Ratoon) 80% - - - 2.00 84700 RED CHILLIES 60% - - - 6.90 121200 (Irrigated) RED CHILLIES (Unirrigated) 60% - - - 9.10 95500 COTTON (Irrigated) 60% - - - 3.05 29200 COTTON 60% - - - 8.85 22600 (Un-irrigated) Note : Normal premium rates are not applicable for Annual Commercial/ Annual Agricultural Crops.6
Cir. No. 133-2007-BC-CD, dt. 11.7.2007 6 1) Normal Coverage : Sum Insured (i.e. Part-A of loanee and non loanee declaration format): 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. 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 yield i.e. upto the maximum limit as per Col. G. c) Actuarial Premium Rates as per Col. F shall be applicable. III TYPES OF COVERAGE, PREMIUM & SEASONALITY DISCIPLINE : The following table contains various crops coverage, premium rates, seasonality discipline, cut-off date for submission of statements to HO, etc. Crop Premium Rates (%) Loaning period eligible for coverage Final cut-off date for submission of statements to concerned ROs Paddy, Jowar, Maize Red Gram, Black Gram & Green Gram Castor, Bajra, Sunflower & Groundnut (irrigated) 2.50 Loans disbursed between 1.4.2007 to 3.50 Cotton (irrigated) 3.05 Cotton (unirrigated) 8.85 Redchillies 6.90 (irrigated) Redchillies 9.10 (un-irrigated) 30.9.2007 for Kadapa, Anantapur and Kurnool Districts and Prakasam & Nellore Districts which it is 1.4.2007 to 31.10.2007 5.10.2007 for Kadapa, Anantapur and Kurnool Districts and for Prakasam & Nellore Districts it is 5.11.2007. 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 Officer (Adv)/MD will be held personally responsible for all the consequences that may arise. Hence, ARM-4 for April, May, June and July 2007 should reach concerned ROs by 3.8.2007 without fail and ROs shall submit the consolidated crop insurance statements to AIC by 8.8.2007..7
7 Cir. No. 133-2007-BC-CD, dt. 11.7.2007 Crop Groundnut (un-irrigated) Sugarcane (Plant) Sugarcane (Ratoon) Premium Loaning period Rates (%) eligible for coverage 3.50 Loans disbursed between 1.4.2007 to 31.8.2007 for Kadapa, Anantapur and Kurnool Districts and between 01.04.2007 to 30.09.2007 for Prakasam District. 3.35 Loans disbursed between 1.11.2006 to 2.00 31.10.2007. Final cut-off date for submission of statements to concerned ROs 5.10.2007 for Kadapa, Anantapur and Kurnool Districts and for Prakasam & Nellore Districts it is 5.11.2007. 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 Officer (Adv)/MD will be held personally responsible for all the consequences that may arise. Hence, ARM-4 for April, May, June and July 2007 should reach concerned ROs by 3.8.2007 without fail and ROs shall submit the consolidated crop insurance statements to AIC by 8.8.2007. V 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, May and June 2007 if they have no transactions (before guidelines) though they have submitted the NIL statement for April, May and June 2007. 3) The premium has to be debited as and when the loan is disbursed. 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. 8
Cir. No. 133-2007-BC-CD, dt. 11.7.2007 ii) 8 MARGINAL FARMER: A cultivator with a land holding of 1 hectare or less (2.5 acres). 6) Avoid wrong declaration of name of crop, village, mandal, etc. Lands 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, village/ 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 Anantapur, Kadapa and Kurnool Districts and for Redgram crop in case of Prakasam district shall be prepared revenue village wise with mandal name and submit to concerned RO. 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 2007 and branches should submit the same to concerned ROs by 5.1.2008. 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 concerned Regional Office every month as per schedule. ARM-4 for April, May, June and July 2007 should reach concerned Regional Office by 3.8.2007. ARM-4 for subsequent months should reach 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. Clarification required, if any, on this circular can be sought from Head Office-Credit Department, Kadapa. (M.OBULESU) CHAIRMAN
BRANCH : ANDHRA PRAGATHI GRAMEENA BANK HEAD OFFICE :: KADAPA Encl. to Cir. No. 133-2007-BC-CD, dt. 11.7.2007 REGION: STATEMENT OF MONTH WISE/MANDAL WISE/CROP WISE NON-LOANEE DETAILS SEASON : KHARIF 2007 MONTH : CROP: DISTRICT : MANDAL : Sl. No. Name of Farmer (Full Surname & name) Father s Name (Full Surname & name) Survey No. Name of Village Area in Hectares Sum Insured (Rs.) SB A/c. No. Date of premium paid to Bank Date : OFFICER (Adv.) MANAGER
IT IS HEREBY CERTIFIED THAT Encl. to Cir. No. 133-2007-BC-CD, dt. 11.7.2007 NATIONAL AGRICULTURAL INSURANCE SCHEME (NAIS) CROP & AREA SOWN CONFIRMATION CERTIFICATE (to be issued by Revenue/Agriculture Department Govt. Official) i) Sri (full surname and name) ii) son of Sri (full surname and name) a resident of village of Mandal in District has actually sown the crop/s in the below mentioned Survey Number/s and the condition of the crop/s at the time of issuing the certificate is SATISFACTORY and iii) the field verification was done by me and the information furnished below is correct and as per records. Village & Mandal Survey No. Total holding Name of the Crop Area under the crop in hectares Date of sowing the crop Name of the Certifying Official : Designation : Signature of Office/Address : Agriculture Officer/ Village Date : Secretary certifying the above details I HEREBY DECLARE THAT DECLARATION BY FARMER 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/ A.P. Farmers Services Cooperative Society (APFSCS) Ltd. as per service area approach and iv) That I have not insured above crop/area in any other Bank/FSCS. Place : Date : Signature/Thumb Impression of the farmer SB A/c. No. Address :
Encl. to Cir. No. 133-2007-BC-CD, dt. 11.7.2007 PROPOSAL FORM FOR NON-LOANEE FARMER - NATIONAL AGRICULTURAL INSURANCE SCHEME DISTRICT : NAME OF THE BANK : SEASON : BRANCH : A/c. 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 (Rs.) PREMIUM SUBSIDY (Rs.) [if eligible] NET PREMIUM (Rs.) (A) (B) (A) (B) (A) (B) (A) (B) FOR BANK S USE (Proof confirming status of Small & Margin 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 or A.P. Farmers Services Cooperative Society (APFSCS) Ltd. or any other bank branch or society. Place : Date : Signature/Thumb Impression of the Farmer