Farmers from Maharashtra, Rajasthan and Andhra Pradesh have taken a lead in taking up National Agricultural Insurance Scheme (NAIS) while farmers from the states such as West Bengal, Bihar, Jharkhand, Orissa, Chhattisgarh and Tamil Nadu have been trailing in subscribing to the crop insurance scheme which has been currently operational across 548 districts.

According to the latest data by ministry of agriculture, out of 17 crore farmers who had availed the scheme, more than 80 lakh farmers from Maharashtra and 50 lakh farmers each in Rajasthan and Andhra Pradesh have taken the agricultural insurance scheme.

Farmers from states such as West Bengal, Bihar, Jharkhand, Orissa, Chhattisgarh, and Tamil Nadu have been slow in taking up the scheme with fewer than 20 lakh farmers in each state buying the government subsidised insurance scheme.

Farmers under NAIS bear only around 2% of the premium cost, with the Central and respective state governments sharing the rest. NAIS was introduced during rabi season 1999-2000.

For addressing the lacunae in the scheme, a modified NAIS has been introduced to address some of the limitations of the 11-year-old scheme for expanding its coverage?and expand its coverage. ?The scope of the insurance plan has been enlarged to cover pre-planting and sowing risk, post-harvest losses in coastal areas and localised calamities,? RK Tiwari, joint secretary, department of agriculture and cooperation, said

The modified scheme will be implemented in 50 districts on pilot basis and at present it is present in 34 districts of 22 states during the current Rabi 2010-11 season? Tiwary said

While addressing a conference title ?Accelerating Agri-Insurance in India? organied by Ficci, he said that the lack of understanding or mis-understanding with farmers at the level of insurance posses a problem with insurance schemes.

?Large part of rural populace especially farmers do not understand it and that is a challenge,? Tiwari noted.

NAIS in the last 22 crop seasons covered 17 crore farmers, collected premiums totalling Rs 6,213.41 crore, paid out claims worth Rs 20,437.2 crore. During 2009-10, NAIS covered 2.39 crore farmers and paid claims worth Rs 4,936 crore, up from 1.84 crore farmers covered and Rs 1,724 crore in claims paid out in 2007-08.