NAIS is a scheme introduced by the Indian government in 1999-2000. It stands for “National Agricultural Insurance Scheme’. It is also known as the ‘Rashtriya Krishi Bima Yojana’ (RKBY). NAIS gives insurance coverage for all food crops including cereals and pulses, horticultural crops, oilseeds as well as commercial crops. The insurance scheme covers all farmers including loanees and non-loanees.
The premium rates range from 1.5% to 3.5% of the assured sum for the food crops. For commercial or cash crops and horticultural crops, actuarial rates are charged. Marginal and small farmers are also eligible for a 50% subsidy in the premium rates. This subsidy is shared between the central and the state governments equally, and is set out to be phased out in the coming five years.