DECCAN GRAMEENA BANK

DECCAN GRAMEENA BANK For Internal Circulation only
DECCAN GRAMEENA BANK
(Sponsored by State Bank of Hyderabad)
Sl.No.116
Cir.No.ADV/51/2006–2007 Date: 18.11.2006
ALL BRANCHES / ADMINISTRATIVE OFFICES :
NATIONAL AGRICULTURAL INSURANCE SCHEME (NAIS) -
NOTIFICATON OF CROPS AND AREAS FOR RABI 2006-07 SEASON - GUIDELINES
* * *
Please refer to H.O.Circular No.ADV/09/2006-2007, dated 06.06.2006.
The State Level Coordination Committee on Crop Insurance (SLCCCI) in it’s meeting
held on 13.10.2006 has decided to notify Crops and Districts (all Mandals in the District)
listed below for coverage under the National Agricultural Insurance Scheme (NAIS) during
Rabi 2006-07 season.
THE DETAILS OF NOTIFICATION FOR RABI 2006-07 SEASON
(NOTE : ALL THE MANDALS IN THE FOLLOWING DISTRICTS ARE NOTIFIED)
DISTRICT CROPS NOTIFIED FOR COVERAGE
ADILABAD (1) Rice; (2) Jowar (unirrigated); (3) Maize;
(4) Greengram; (5) Sunflower.
KARIMNAGAR (1) Rice; (2) Jowar (unirrigated); (3) Maize;
(4) Groundnut; (5) Sunflower.
NIZAMABAD (1) Rice; (2) Jowar (unirrigated); (3) Maize;
(4) Groundnut; (5) Sunflower; (6) Onion.
RANGA REDDY (1) Rice; (2) Jowar (unirrigated);
(3) Groundnut; (4) Onion
Insurance coverage is compulsory for all loanee farmers availing Seasonal
Agricultural Operations (SAO) loans for notified crops in notified areas upto the full
loan amount. All Kissan Credit Card loans are eligible for coverage as per the guidelines
given under Para-8 of this circular. The non-loanee farmers at their option can avail
coverage under NAIS by submitting proposal as per prescribed format alongwith Crop and
Area Sown Confirmation Certificate, at any service area branch within the cut-off date given
under Para-7 of this circular.
Head Office :
9-27/1, First Floor, Lalitha Nagar,
Dilsukhnagar, Hyderabad-500 060.
Tel: Off : 040-24066651, 24150621
Fax : 040-24065129.
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DECCAN GRAMEENA BANK For Internal Circulation only
IMPORTANT
Subsidy in Premium to Small & Marginal Farmers is 10% only. Strictly follow the
Small and Marginal definition (refer point no:10) while allowing the Subsidy and
furnishing the figures in the Declarations.
Monthly cut-off dates for submission of Declarations will be strictly followed
henceforth from the beginning of the season; i.e., Declarations for loans disbursed
during October, 2006 should be submitted to District Nodal Offices before
20.11.2006.
SUBMIT MANDAL-WISE / CROP-WISE DECLARATIONS ONLY.
The detailed guidelines are as follows :
I. GUIDELINES :
1. Premium computation should be done accurately, as per the applicable rates for
notified crops given above. Branches should allow Premium Subsidy of 10% in
respect of small & marginal farmers, both for Loanee and Non-Loanee categories.
Remittance of excess premium shall not entitle for increase in sum insured at a later
date, and refund of such excess remittances shall be solely at the discretion of AIC.
2. Premium should be remitted by branches, through single TRA for one lot of
declarations to District Nodal Offices, which inturn remits the same favouring AIC of
India payable at Hyderabad after consolidation at their end. However, separate TRAs
should be drawn for loanee and non-loanee farmers.
3. Based on statements received from branches/District Nodal Offices shall consolidate
the particulars, prepare declarations and submit to AIC of India within the
prescribed cut-off dates. Only one consolidated declaration for a notified crop in a
Mandal for a Month should be submitted in each lot of Declarations. Declarations
received after the prescribed cut-off dates will be summarily rejected. Single copy of
declaration (as per the correct format) should be submitted separately for Loanee and
Non-loanee farmers, crop-wise, Mandal-wise and Month-wise in the prescribed
format.
4. Care should be taken to furnish complete and accurate information in the declaration
with respect to Mandal, Crop, Month of loaning, No of Farmers, Sum Insured etc. In
case of any omissions in respect of required information, the declarations will be
returned. The Branch Manager concerned shall only be liable & responsible for
all errors of omission and commission in the Declaration.
5. In case of Jowar crop, only Unirrigated crop is notified and hence care should be
taken to cover only Jowar (unirrigated). The crop name should be clearly
mentioned as ‘JOWAR (Unirrigated)’ in the Declarations.
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DECCAN GRAMEENA BANK For Internal Circulation only
6. TYPES OF COVERAGE, PREMIUM & SEASONALITY DISCIPLINE :
TYPE OF
COVERAGE
Loanee
farmers upto
loan amount
Loanee
farmers
beyond loan
amount
Non-loanee
farmers
NATURE OF
COVERAGE
SEASONALITY
DISCIPLINE
Compulsory Loans disbursed
from October, 2006
to March, 2007
Optional (by
filling a
‘proposal of
additional
coverage for
loanee farmers’)
Optional (by
filling a
‘proposal for
non-loanee
farmers’)
Proposals to be
submitted before
31.12.2006 by
farmers
Proposals to be
submitted within
one month from
date of sowing or
before 31.12.2006,
whichever is earlier,
by farmers
SEASON FINAL CUT-OFF
DATE FOR SUBMISSION
OF DECLARATION TO
AIC
31.05.2007 subject to
monthly cut-off dates (as
per Para-7)
APPLICABLE
PREMIUM RATE
As per Column D
of Annexure-I.
31.01.2007 For Part B as per
Column D of
Annexure-I and
for Part C as per
Column F of
Annexure-I.
31.01.2007 For Part A as per
Column D of
Annexure-I and
for Part B as per
Column F of
Annexure-I
7. MONTHLY CUT – OFF DATES FOR SUBMISSION OF DECLARATIONS :
FARMERS
LOANEE & NON-
LOANEE
Loaning Month
Cut-off date
Branches to AO/ZO AO/ZO to AIC
October, 2006 20.11.2006 30.11.2006
November, 2006 10.12.2006 31.12.2006
December, 2006 10.01.2007 31.01.2007
LOANEE January, 2007 10.02.2007 28.02.2007
LOANEE February, 2007 10.03.2007 31.03.2007
LOANEE March, 2007 10.04.2007 30.04.2007
Seasonal Final (for clarifications) 15.05.2007 31.05.2007
8. GUIDELINES FOR COVERAGE OF KISSAN CREDIT CARDS (KCC) LOANS UNDER
NAIS :
While issuing Kissan Credit Cards the branches shall specify crop-wise and seasonwise
sub limits sanctioned on the card. Credit limit for other purposes, if any, need
also to be specified on the card.
At the time of withdrawal of credit by the farmer, branches shall ensure the purpose
i.e. crop, acreage and season for which the credit is withdrawn by the farmer, since
crop insurance premium rating and claims settlement are crop and season specific.
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DECCAN GRAMEENA BANK For Internal Circulation only
Loans under Kissan Credit Cards shall be covered on the basis of actual
withdrawals (and not on the basis of sanctioned limits under the card) and normal
coverage during a particular season under the card shall not exceed the crop-wise
sub limit specified. Farmers desiring coverage of higher sum insured beyond the
loan amount, as permissible under the scheme, shall do so as per the seasonality
discipline applicable for non-loanee farmers.
The State Level Coordination Committee on Crop Insurance can specify an
alternative seasonality to discourage exploitation of the Scheme provisions.
Separate crop insurance declarations may be submitted for Kissan Credit Card
loans.
9. IMPORTANT CONDITIONS APPLICABLE FOR COVERAGE OF RISK :
Loans given for unsown areas will not be covered by the Scheme, because,
indemnity claims will arise under the Scheme, only after the crop has been sown
and in the event of crop failure. Mere disbursement of loans by the Bank /
submission of proposal by a Non-loanee farmers will not entitle him for
compensation under the scheme.
In the areas where crop is sown but, withered away / damaged on account of
adverse seasonal conditions and where there is no possibility of reviving the crop,
no further loaning should be made by the financing institutions. Any further loaning
in such cases shall not be covered by the Scheme.
The branches while disbursing the crop loans should ensure proper end use of the loan
disbursed i.e. crop loans insured for a crop should have actually been utilised for raising
the same crop which can be ascertained from field as well as revenue records.
10. Strictly follow the scale of finance and land holdings of S/M and other farmers :
SMALL FARMER : A cultivator with a land holding of 2 hectares (5 acres) or less, as
defined in the land ceiling legislation of the concerned State / UT.
MARGINAL FARMER : A cultivator with a land holding of 1 hectare or less (2.5 acres).
STAFF ACCOUNTABILITY : Non-compliance of the any of the above instruction
attracts staff accountability and hence the Branch Manager and Field Officer should go
through the instructions carefully and ensure full compliance.
Please bring the contents of the circular to the notice of all the members of staff
working at the branches/Administrative offices for strict compliance.
C H A I R M A N
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DECCAN GRAMEENA BANK For Internal Circulation only
NOTIFIED
CROP
LEVEL
OF
INDEMNI
TY
ANNEXURE – I
NORMAL COVERAGE PER
HECTARE (UPTO VALUE
OF THERESHOLD YIELD)
SUM
INSURED
(Rs.)
NORMAL
PREMIUM
RATE
(In %)
ADDITIONAL COVERAGE
PER HECTARE (BEYOND
VALUE OF THERESHOLD
YIELD AND UPTO 150%OF
VALUE OF AERAGE YIELD)
SUM
INSURED
(Rs.)
ACTUARIAL
PREMIUM
RATE (In %)
MAXIMUM
COVERAGE
(PER HECT.)
SUM
INSURED
(Rs.)
A B C D E F G = (C+E)
Food crops and Oilseeds
Rice 80% 24300 2.00 21200 2.55 45500
Jowar (UI) 60% 3100 2.00 4700 6.10 7800
Maize 80% 22100 2.00 19300 4.65 41400
Green Gram 60% 2800 2.00 4300 6.95 7100
Groundnut 80% 19500 2.00 17100 3.45 36600
Sunflower 80% 9300 2.00 8100 7.25 17400
Annual Commercial Crop
Onion 60% 2.80 200400
Note : NORMAL PREMIUM RATES ARE NOT APPLICABLE FOR ANNUAL COMMERCIAL
CROP.
1. Normal Coverage – Sum Insured (i.e. part A) of loanee and non-loanee declaration
formats)
Compulsory coverage of full loan amount for loanee farmers.
Optionally upto the limit as per column C incase of non-loanee farmers.
Normal Premium rates as per column D shall be applicable.
2. Extended Coverage – Sum Insured (i.e. part B of loanee declaration format)
Coverage is optional upon submission of a proposal before 31.12.2006.
If loan amount is less than the value of threshold yield i.e. column C, extended
coverage will be beyond loan amount up to the limit as per column C.
Normal premium rates as per column D shall be applicable.
3. Additional Coverage – Sum Insured (i.e. part C of Loanee and part B of Non-loanee
declaration format)
Coverage is optional upon submission of a proposal before 31.12.2006.
Beyond Normal and/or Extended coverage and up to 150% of value of Average Yield
i.e. up to the maximum limit as per column G.
Actuarial Premium Rates as per column F shall be applicable.
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DECCAN GRAMEENA BANK For Internal Circulation only
ANNEXURE – II
GUIDELINES FOR COVERING NOTIFIED CROPS OF NON-LOANEE FARMERS
OPTIONAL COVERAGE : The non-loanee farmers at their option can avail coverage for
notified crops under NAIS by submitting a completely filled Proposal Form alongwith
Crop and Area Sown Confirmation Certificate in original, duly certified by Agriculture
Officer / Village Secretary and declared by the farmer.
The branches while accepting the non-loanee proposal form should invariably obtain the
Crop and Area Sown Confirmation Certificate in original from the farmer.
The age of the crop on the date of submitting the proposal should be less than ONE
MONTH from the date of sowing.
Non-loanee farmer desiring coverage under NAIS should have a Bank account in the
branch where the proposal is submitted.
The Crop Insurance declarations for non-loanee farmers should be submitted only in the
form prescribed for Non-loanee farmers and should be accompanied by a separate
Demand Draft towards premium, a separate statement giving Month–wise/Mandal–
wise/Crop–wise/Non-Loanee Farmer-wise details of coverage, copies of Proposal forms
and copies of Crop and Area Sown Confirmation Certificate.
The specimen formats of Non-Loanee proposal form, Crop and Area Sown Confirmation
Certificate, Non-Loanee Declaration Form, Statement showing Month-wise/Mandalwise/Crop-wise/Non-Loanee
farmer-wise details should only be submitted.
The cut-off date for submission of proposals by non-loanee farmers to branches
is 31 st December, 2006 and for submission of declarations by branches to District Nodal
Offices by 15 th January, 2007 and which inturn to AIC is 31 st January, 2007.
AIC reserves the right to verify all the Non-loanee records, if deemed necessary.
Crl. ADV-51 6

DECCAN GRAMEENA BANK For Internal Circulation only
NATIONAL AGRICULTURAL INSURANCE SCHEME
Month-wise / Mandal-wise / Crop-wise Non-Loanee Details Name of the Branch :
SEASON : RABI 2006-07 MONTH : CROP : MANDAL :
Sl.
No.
Name of Farmer Father’s Name Survey No.
TOTAL
Name of
Village
Area in
Hect.
Crl. ADV-51 7
Sum Insured
(Rs.)
S.B.A/c. No.
Date of
premium
paid to Bank
(AUTHORISED SIGNATORY)

DECCAN GRAMEENA BANK For Internal Circulation only
NATIONAL AGRICULTURAL INSURANCE SCHEME (NAIS)
CROP AND AREA SOWN CONFIRMATION CERTIFICATE
(To be issued by Revenue/Agriculture Department Govt.Official)
IT IS HEREBY CERTIFIED THAT
1. Shri _____________________________________ (full surname & name) Son of
Shri ____________________________________ (full surname & name) a
resident of ________________________ Village of _______________________
Mandal in ____________________ District has actually sown the crop/s in the
below mentioned survey number/s and
2. The condition of the Crop/s at the time of issuing this certificate is
SATISFACTORY and
3. The field verification was done by me and the information furnished below is
Village &
Mandal*
correct and as per records.
Survey
Number
Total
Holding
Name of
Crop
Area under
the crop in
Hectares**
Date of
sowing the
crop
Note : * Location of Land Holding. ** In case of mixed crop % of each crop to be sown.
Name of Certifying Official :
Designation :
Office/Address : Signature of
Agriculture Officer / Village
Secretary certifying the above details
Date :
Crl. ADV-51 9

DECCAN GRAMEENA BANK For Internal Circulation only
I HEREBY DECLARE THAT
DECLARATION BY FARMER
1. This certificate is obtained by me for the purpose of crop insurance coverage under
NAIS as a non-loanee farmer and
2. That I have not availed crop loan for the above crop/s as Loanee farmer and
3. I shall attach this original certificate with the crop insurance proposal to be lodged at
______________ Bank Branch at _________________ Village as per service area
approach and
4. I have not insured the above crop/area in any other Bank/ PACS.
Place : Signature of Farmer
Date : Address :
Crl. ADV-51 10