In 1999-2000 the Rashtriya Krishi Bima Yojana was started by establishing extensive successful Bima Yojana. The main objectives of the Rashtriya Krishi Bima Yojana are as follows –
(1) To protect the farmers from the harm in crops which takes place due to natural calamity like dought, flood, fire, pest etc.
(2) To provide insurance to the farmers in future so that their motivation regarding the increase in production of crops keeps existing.
(3) To provide insurance for both the debtor farmers or undebtor farmers so that specially
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landless and small farmers benefit.
(4) To prevent and stop the incidents like suicide and running away from the production process by the farmers because of crop spoiling and lots of loans.
(5) To encourage development in the cultivation sector, food crops, cash crops are to be ensured.
The implementation of the Rashtriya Krishi Bima Yojana has been supported by not only the ordinary Indian Insurance Company Limited by also by for other companies viz. New India Insurance, Oriental Insurance, United India Insurance Company Limited and NABARD and 1956 Act.