Representations have been received from a number of places regarding the non-payment or delayed payment of insurance claims under the National Agricultural Insurance Scheme (NAIS).

            The Ministry of Finance has gathered the information.

            As on 15.09.2008, the total claims outstanding are Rs.926.79 crore.  This amount has to be shared among the Agricultural Insurance Corporation (AIC), the Government of India and the State Governments in the following proportion:

AIC                                                   :         Rs.180.91 crore

Government of India                           :         Rs.372.93 crore

State Governments (plural share)        :         Rs.372.93 crore

            The Agricultural Insurance Corporation's share and the Government of India's share are ready.  However, in the absence of the contribution(s) of the State Government(s), it has not been possible to disburse the amounts against the outstanding claims.

            Hence, Finance Minister will write to the Chief Ministers of the States concerned to contribute their share towards the outstanding claims.  Every effort will be made to disburse the money to the farmers against the outstanding claims as early as possible.

BSC/SS/GN

State contribution requirement under National Agricultural Insurance Scheme delays disbursement of farmer insurance claims. Non-payment of NAIS claims is due to absent State Government contributions: central and Agricultural Insurance Corporation shares are available but disbursement to farmers is blocked until States provide their allocated shares; the Finance Minister will request Chief Ministers to contribute.