Though India is an agrarian economy, the most basic unit of this sector – the farmers – happen to be the most vulnerable to climatic and economic inconsistencies. In order to bring instability to their lives, and to offer them a sense of security, the government of India offers the Unified Package Insurance scheme or the UPIS.
This scheme largely offers financial protection to citizens who are associated with the Agricultural sector. By doing this, the government of India offers food security, crop diversification, and aids growth and also introduces competitiveness in the markets; it achieves all of this alongside the most basic objective, protecting farmers from financial upheavals.
This scheme offers protection to farmers for a span of a year and is renewable from year to year.
Features of the UPIS
The main features of the scheme are mentioned herewith:
- It is important to understand that the package policy for farmers is basically underwritten by the General Insurance Companies which are impaneled by the Department of Agriculture, Co-operation, and Farmers Welfare.
- The policy basically covers seven sections and crop insurance comes as mandatory. However, along with that, the farmers have to choose at least two other sections to avail of the subsidy under crop insurance.
- The crop insurance is based on area approach while all the other sections mentioned would be on an individual basis
- The sum insured and the premium rates for these insurances are provisionally taken and are subject to change according to the risk(s) involved.
- The premium rates are without any service tax, which is likely to be exempted.
With this scheme in play, the government of India extends a helping hand to farmers who forever live their lives in worry; wondering if tomorrow will bear enough fruit to have food on the table.