The Main Objectives of Rashtriya Krishi Bima Yojana are as follows:
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:
a. To encourage development in the cultivation sector, food crops, cash crops are to be ensured.
b. To provide insurance for both the debtor farmers and un-debtor farmers so that specially landless and small farmers got benefit.
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c. 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.
d. To protect the farmers from the harm in crops which takes place due to natural calamity like flood, fine, pests, drought etc.
e. To provide insurance to the farmers in future so that their motivation regarding the increase in production of crops keeps existing.
A separate organization for agriculture insurance called Agricultural Insurance Company of India Limited’ has been corporate under the Companies Act, 1956 on 20 December, 2002 with the capital participation from General Insurance Corporation of India (GIC), four public sector general insurance companies i.e.,
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a. National Insurance Company Limited
b. New India Assurance Co Ltd
c. Oriental Insurance Company Limited
d. United India Insurance Co Ltd and NABARD
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The promoter’s subscription to the paid up capital is 35% by GIC, 30% by NABARD and 8.75% each by the four public sector general insurance companies. The authorised capital of the new organization is Rs 1600 crore while the new company would underwrite crop insurance to begin with it will in due course, over others allied rural or agricultural risk also. National Agricultural Insurance Scheme (NAIS) which was being implemented by the General Insurance Corporation of India (GIC) has since been transferred to the new company named Agricultural Insurance Company of India Limited (AICIL).