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Crop Insurance Scheme for cotton in Karnataka

Crop Insurance Scheme

Rastriya Krishi Bima Yojana (RKBY) is being implemented in the State since Kharif 2000. Under this scheme, all farmers irrespective of the size of their holdings, both loanee and non-loanee will be insured against any loss of yield due to natural calamities. The scheme is compulsory for loanee farmers and optional for non-loanee farmers. The Premium paid by small and marginal farmers is subsidised to the extent of 10%. Claims will be paid based on indemnity level, Sum assured and shortfall in the assessed yield against the Threshold yield.

            To compensate the crop losses on individual basis to the farmers in the event of crop failure due to localized calamities like flood, hailstorm, cyclone and landslide, all the districts are covered under irrigated cotton

  • The non-loanees have to pay the premium and submit the application within 30 days after the sowing or 31st August 2009 which ever is earlier during Kharif 2009
  • The loanees who availed loan between 01-04-2009 to 31-08-2009 will be compulsorily brought under the crop insurance scheme during Kharif 2009.
  • For small and marginal farmers 10 percent subsidy will be paid on the premium amount
  • The details of level of indemnity, sum insured and premium for Kharif cotton 2009 are detailed below



Indemnity level (%)

Common insurance per hectare based on threshold yield level

Sum insured (Rs.)

Premium (%)


Cotton (Irrigated)




 Weather Based Crop Insurance Scheme

An alternative scheme for Rashtriya Krishi Bima Yojana was framed by Government of India and launched in the country during Kharif 2007. The scheme compensates the insured farmers against the likelihood of financial loss in the event of loss in crop yield resulting from incidence of adverse weather conditions and will cover the risk of deficit and excess rainfall. The scheme is compulsory for loanee farmers and voluntary for non-loanee farmers. Payment of all claims shall be the responsibility of the Agriculture Insurance Company of India Limited. The scheme was implemented in the State on Pilot basis from Kharif 2007 and it was continued during Kharif 2009 covering 12 rainfed crops including Cotton.

  • The Agricultural insurance company of India Ltd. has prescribed the last date for participation during Kharif 2009 as below.

For loanees            : 30-06-2009

For non-loanees     : 13-06-2009

  • The farmers who participate in Weather Based Crop Insurance Scheme should not be covered in RKBY.
  • The details of sum insured and premium are given as follows



Sum insured (Rs/ha)

Commercial premium rate (%)

Premium paid by farmers (%)

Total premium (Rs./ha) including service charges

Subsidy by Govt (Rs/ha)

Premium payable by farmers (Rs./ha)


Cotton rainfed







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