Crop Insurance Premium Calculator

Work out crop insurance premium instantly with clear inputs, formula shown and shareable results.

About Crop Insurance Premium Calculator

Subsidised crop insurance caps the farmer's share of the premium at a fixed rate of the sum insured — commonly 2% for kharif food crops, 1.5% for rabi and 5% for commercial and horticultural crops. The insurer charges an actuarial rate reflecting real risk, and government meets the difference.

Formula

Insurance premium

Sum insured = per-ha sum x area; farmer premium = sum insured x farmer rate; subsidy = sum insured x (actuarial rate - farmer rate)

Worked example

With the default values below, Crop Insurance Premium Calculator returns Premium Payable By Farmer of $4,800.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Sum Insuredminimum 0 per ha: 80,000 per ha
Insured Areaminimum 0.01 ha: 3 ha
Farmer Premium Rateaccepts 0–100 %: 2 %
Actuarial Premium Rateaccepts 0–100 %: 11 %

Results

Premium Payable By Farmer: $4,800.00
Total Sum Insured: $240,000.00
Gross Actuarial Premium: $26,400.00
Premium Subsidy: $21,600.00

Step by step

1Values used
2Insurance premium
3Premium Payable By Farmer= 4,800.00
4Total Sum Insured= 240,000.00
5Gross Actuarial Premium= 26,400.00
6Premium Subsidy= 21,600.00

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Insurance terms, enrolment deadlines, notified insurance units and claim procedures are set by the scheme operating in your district. Confirm details with the implementing agency before relying on any figure.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Insurance terms, enrolment deadlines, notified insurance units and claim procedures are set by the scheme operating in your district. Confirm details with the implementing agency before relying on any figure.

Frequently Asked Questions

What does the sum insured represent?

Usually the scale of finance for the crop and district, which approximates the cost of cultivation rather than the full expected revenue. Payouts are capped by it.

How are claims settled?

Under area-based yield schemes, a claim arises when the notified insurance unit's actual yield falls below the threshold yield, and the payout is proportional to the shortfall — individual field loss is not assessed.