National Crop Insurance Programme


National Crop Insurance Programme

Ministry/Department : DAC , Ministry of Agriculture & Farmers Welfare


Objective of the scheme:

The Scheme aims to provide insurance coverage and financial support to the farmers in the event of crops failure as a result of natural calamities, pests and diseases as also to encourage farmers to adopt progressive farming practices, high value inputs and higher technology in agriculture.

The Scheme:

It was started by merging three schemes which are now its component :

a. Modified National Agricultural insurance Scheme (MNAIS),

b. Weather Based Crop insurance Scheme (WBCIS) and

c. Coconut Palm Insurance Scheme (CPIS)


The component  provides insurance coverage and financial support to the farmers in the event of failure of crops and subsequent low crop yield.

(1). It covers food crops including cereals, millets and pulses; oil seeds and horticulture crops.

(2). Individual State Governments notify the crops to be covered.

(3). Department of Agriculture & Cooperation (DAC) empanels the companies that provide insurance under this scheme


(1).  A component of NCIP

(2). In the event of failure of crops due to Adverse Weather Incidence, it provides insurance coverage and financial support to the farmers i

(3). WBCIS claims is also available to farmers who do not insure their crops under MNAIS but whose crops are damaged due to Adverse Weather Incidence.

(4). Under WBCIS, “Area Approach” is followed i.e. a ‘Reference Unit Area (RUA)’ is defined by state government as a homogeneous unit of Insurance.

Such RUA can be a Village Panchayat / Revenue Circle / Mandal / Hobli / Block / Tehsil etc. as defined by the state government


WBCIS covers  major food crops such as cereals, millets & pulses, Oilseeds and commercial / horticultural crops. State Governments notifies the crops covered under this.

What are the major differences between MNAIS and WBCIS ?

(1). WBCIS insures loss due to weather incidents while MNAIS insures drop in crop yield to any reason.

(2). MNAIS benefits is given to only farmers who has insured their crops while WBCIS is based on area approach and its benefit is available to all farmers.


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