6 Nov 2019

Restructured Weather Based Crop Insurance Scheme (RWBCIS)

Source: Kurukshetra Magazine

The RWBCIS was launched on 18th February 2016 by the Prime Minister of India

Aim of Weather Based Crop Insurance Scheme

Weather Based Crop Insurance Scheme (WBCIS) aims to mitigate the hardship of the insured farmers against the likelihood of financial loss on account of anticipated crop loss resulting from adverse weather conditions relating to rainfall, temperature, wind, humidity, etc. 

Key features

Crops covered

  • Major Food crops (Cereals, Millets & Pulses) & Oilseeds
  • Commercial / Horticultural crops

Farmers covered

  • All farmers including sharecroppers and tenant farmers growing the notified crops in the notified areas are eligible for coverage. However, farmers should have an insurable interest on the insured crop. The non-loanee farmers are required to submit necessary documentary evidence of land records and/or applicable contract/agreements details (in case of sharecroppers/tenant farmers).
  • All farmers availing Seasonal Agricultural Operations (SAO) loans from Financial Institutions (i.e. loanee farmers) for the crop(s) notified are covered on a compulsory basis.
  • The Scheme is optional for the non-loanee farmers. They can choose between WBCIS and PMFBY, and also the insurance company.

Perils covered

Following major weather perils, which are deemed to cause “Adverse Weather Incidence”, leading to crop loss, shall be covered under the scheme.

  • Rainfall – Deficit Rainfall, Excess rainfall, Unseasonal Rainfall, Rainy days, Dry-spell, Dry days
  • Relative Humidity
  • Temperature – High temperature (heat), Low temperature
  • Wind Speed
  • A combination of the above
  • Hailstorms, cloud-burst may also be covered as Add-on/Index-Plus products for those farmers who have already taken normal coverage under WBCIS.

Risk period

The risk period would ideally be from the sowing period to the maturity of the crop. The risk period depending on the duration of the crop and weather parameters chosen could vary with individual crop and reference unit area and would be notified by SLCCCI before the commencement of the risk period.

Premium rates

The revised premium rates payable by the cultivator for different crops are as follows:

Crops  Maximum Insurance charges payable by the farmer (% of Sum Insured)
Season – Kharif – Food & Oilseeds crops (all cereals, millets, & oilseeds, pulses) 2.0% of SI or Actuarial rate, whichever is less
Season – Rabi – Food & Oilseeds crops (all cereals, millets, & oilseeds, pulses) 1.5% of SI or Actuarial rate, whichever is less
Season – Rabi and Kharif – Annual Commercial / Annual Horticultural crops 5% of SI or Actuarial rate, whichever is less

The ‘net premium payable in case of the insured loanee cultivator is financed by the Lending Bank.

Insurance companies participating in WBCIS

The public sector and private sector General Insurance Companies empanelled by the Department of Agriculture & Cooperation (DAC) and Farmers Welfare, Government of India and selected by concerned State Government / Union Territory (UT) implement WBCIS.