Unified Package Insurance Scheme UPIS For Farmers
The present government of Indian has recently launched a huge number of schemes. And undoubtedly all the schemes have proved to be really effective for the Indian Citizens. The UPIS is yet another scheme launched by the central government of India. And this time it has been targeted for the farmers of our country. The farmers have been facing a really tough condition due to the recent draughts that took place this year. This is the reason; the new scheme is going to be so much relieving for the people. This is focused on offering a financial independence for the farmers in agriculture, food security and a crop diversification. This is going to enhance the growth and competitiveness within the agricultural sector. And a lot of risks shall also be saved.
The insurance coverage shall be available for the whole year, only the crop insurance shall be available for two times. And the insurance coverage shall be completely renewable year after year. The loanee farmers will be covered through the different banks, and financial institutions and the non-loanee farmers shall be covered through insurance intermediaries and banks.
What are the general provisions for UPIS?
The UPIS scheme shall be implemented on 45 districts initially. And this will start from the Kharif crops 2016. The farmer shall have access banks for attaining the insurance.
The UPIS shall have a total of 7 sections, and among them the section 1 which is called PMFBY is mandatory. But it must be remembered that the farmers need to choose two other sections to avail the applicable subsidy within the PMFBY section.
The total coverage shall be done for one complete year. When any farmer has already taken up the insurance policy, secured the two sections and also the insured sum in the scheme is not more than the assured amount in the policy, then those individual farmers shall be completely exempted from any further sections.
The suitability of UPIS scheme
The policy has been formatted for taking care of the needs of the farmers who are associated with the agricultural activities. The policy offers yield based crop protection according to the ownership of lands and also the sown crops.
It also helps in covering up the personal assets of the farmers. For instance, if they needed to deal with Fire, or the assets that help in earning with livelihood, like the Agricultural pump sets, and tractors owned by farmers are protected in this scheme.
The policy also offers accidental protection to the farmers, in case of any accidental death, disablement, the accidental insurance is offered to the farmers. It also includes children’s education provision in case of any death to parent.
The Different features and benefits of the UPIS
This package policy that is offered will be done by the Agriculture Department of India. Along with that organization, the Co-operative farmers’ welfare unit and the general insurance companies are going to take part in this program.
The policy contains 7 sections. And this crop insurance shall be mandatory. And in case of the crop insurance, the farmer’s share of premium range shall be within 1.5% to 5%. Depending on the insured crops. If the Actuarial premium is more, the government shall offer equal amount of subsidy within the Actuarial premium and the premium paid by the farmers. The insurance of crops shall be based on the area of approach but the other sections are formatted on an individual basis.
The rates mentioned above for the insurance, can be re-formatted according to the convenience of the insurers.
The sum that has been insured and also the premium rates are provisionally taken and that may vary according to the risks. The premium rates are formatted without any service tax and that will be exempted.
What are the farmers required to do?
Well, as we are aware of the fact that farmers do not have a really great educational background, the government has taken up a really sensible step in this process. All the farmer need to do is sign the declaration by giving all the necessary details in relevant sections in which the insurance shall be offered. When you have completed filling up the form, it has to be signed and submitted to the insurance company or the bank or the intermediary company who will sign the receipt. But remember that the proposal form is the compulsory thing for the loanee and non loanee.
What do the banks do?
After the proposal form is accepted by the banks, they offer a unique reference number for each and every proposal form that is accepted. The acknowledgement is provided by the banks and such acknowledgements are only valid in reference to the proposal forms. There cannot be any changes made within the proposal form unless and until it is agreed in writing by the insurance company. The banks shall also have the continuous tie-ups with insurance companies from the PMFBY. But if the existing tie up company is not meeting up with the terms and conditions, then the existing insurance company shall offer insurance for other sections.
The scope of coverage
The farmers are eligible for the crop insurance within the age of 18-70. If the individual has multiple savings accounts, then he/she will be eligible for joining the scheme through one savings account only.
A tabular overview of UPIS
|SL NO||Facts about UPIS||Brief details|
|1.||The premium||A total premium of Rs 12 needs to be paid by every individual and this amount is going to be deducted from the savings account of the person opting for the scheme.|
|2.||What is Master Policy holder?||The master policy holder is the participating bank for all the individual subscribers.|
|3.||The termination of coverage||The insurance coverage shall be terminated on the following factors:
On attaining the age of 70.
At the time of renewal of the insurance
If the insurance coverage is seized because of any technical reasons or administrative issues, it can be re-instated on receiving of full annual premium. But in this period the risk coverage shall be suspended.
|4.||Risks covered||Yield loses
Natural fire and lightening
Flood, landslide and inundation
Draught, dry spells and pests/diseases.