The Indian Government is set to introduce new crop insurance scheme in the fiscal year 2016-17, in a bid provide farmers with lower premium and faster settlement of claims.
As part of the new scheme, the farmers has to pay an average premium of up to 2.5% for foodgrain and oilseeds crops, as well as 5% for horticulture crops.
Modern technologies, including drones, will be used to evaluate crop damage, under the new scheme.
India Agriculture Minister Radha Mohan Singh was quoted by Press Trust of India (PTI) as saying: "We have identified discrepancies in the existing scheme of Modified National Agricultural Insurance Scheme (MNAIS) and come out with a new crop insurance scheme.
"Once it is approved by the cabinet, the scheme will be implemented from 2016-17.
"We will address all the issues and take the proposal before the cabinet at the earliest so that the scheme can be implemented from the forthcoming kharif season from June."