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