| Parameters | NAIS | WBCIS | MNAIS |
|---|
| Data Requirement | Past yield data as well as actual yield data based on CCEs is required | Past 25 – 30yrs’ weather data required | Yield data as well as rainfall data required |
| Premium | 1.5 to 3.5% for food and oilseeds for normal coverage and actuarial premium for higher sum insured &/or indemnity level. Actuarial premium for annual commercial/ horticultural crops. | Actuarial premium. | Actuarial premium. |
| Risks covered | Practically ‘all risk’ insurance | Only parametric weather exigencies (like rainfall, temperature, humidity etc.) are covered. | “All risk’ with added advantage of sowing failure cover. |
| In-season settlement of claims | The claims are settled based on the final yield estimates submitted by States. There is no provision to provide for inseason / on-account settlement of claims | Payouts are made usually within 45 days from end of risk period, subject to receipt of weather data and premium subsidy | On-account settlement of claims upto 25% of likely claims is paid during the crop season based on composite index (weather data / crop health report / satellite imagery etc.) |
| Availing insurance | Only through Banks (RFIs) (though option was given but a rarely any non-loanee came direct) | Loanee: Banks Non-Loanee: Banks / Channel partners / Insurance Intermediaries / Direct | Loanee: Banks Non-Loanee: Banks / Channel partners / Insurance Intermediaries / Direct |
| Service Charge / Commission | 2.5% of gross premium (i.e. flat rate premium) payable under the Scheme | Banks: 4% of premium payable by farmers under the Scheme Others: As decided by Insurer subject to IRDA capping | Banks: 4% of gross premium payable under the Scheme Others: As decided by Insurer subject to IRDA capping |
| Basis Risk | Basis risk is high as the insurance unit is rarely homogeneous | Basis risk is high due to poor density of weather stations. However, it can be minimized with increase in weather station network | Basis risk for localized calamities is reduced. |
