Weather Based Crop Insurance Scheme

Details of Weather Based Crop Insurance

Weather Based Crop Insurance Scheme (WBCIS) aims to mitigate the hardships of the insured farmers against the financial loss owing to the anticipated crop loss resulting from adverse weather conditions relating torainfall, temperature, wind, humidity etc. WBCIS uses weather parameters as "proxy" for crop yields in compensating the cultivators for the deemed crop losses. Payout structures are developed to the extent of losses deemed to have been suffered using the weather triggers.

Coverage of Crops

  • Food Crops (Cereals, Millets and Pulses)
  • Oilseeds
  • Commercial/Horticultural crops

Farmers Covered

All the farmers including sharecroppers and tenant farmers growing the notified crops in the notified areas are eligible for coverage under this scheme. However, farmers should have insurable interest on the insured crop. The non-loanee farmers are required to submit necessary documentary evidence of land records and/or applicable contract/ agreements details (in case of sharecroppers / tenant farmers).

All farmers availing Seasonal Agricultural Operations (SAO) loans from Financial Institutions (i.e. loanee farmers) for the crop(s) notified are compulsorily covered.

The Scheme is optional for the non-loanee farmers. They can choose between WBCIS and PMFBY, and also the insurance company based on their requirements.


Weather Perils to be Covered

Following major weather perils, which are deemed to cause "Adverse Weather Incidence", leading to crop loss, shall be covered under this scheme:

  • Rainfall - Deficit Rainfall, Excess rainfall, Unseasonal Rainfall, Rainy days, Dry-spell, Dry days
  • Temperature - High temperature (heat), Low temperature
  • Relative Humidity
  • Wind Speed
  • A combination of the above
  • Hailstorm, Cloud-burst may also be covered as Add-on/Index-Plus products for those farmers who have already taken basic coverage under WBCIS.

Period of Risk (Insurance Period)

Risk period would ideally be from sowing to maturity of the crop. Risk period depending on the duration of the crop and the weather parameters chosen, could vary with individual crop and reference unit area. The risk period would be notified by the State Level Co-ordination Committee on Crop Insurance (SLCCCI) before the commencement of the same.


Benefits of the Restructured Weather Based Insurance Scheme

  • The Farmer's share of the premium is 5% of the Sum Insured or the Actuarial Rate or whichever is less.
  • Claims shall be assessed only on the basis of weather data recorded by the notified Reference Weather Station (RWS) and the claims process shall commence once the weather data is received. The weather data providers should ensure that the exposure conditions of Automatic Weather Station (AWS), their standardization/calibration, maintenance and weather data transmission meet the guidelines issued by the Government of India.

BAGIC Participation

In the financial year 2016-17, BAGIC implemented RWBCIS in Andhra Pradesh, Chhattisgarh, Maharashtra and Telangana state.

In the financial year 2017-18, BAGIC implemented RWBCIS in Chhattisgarh, Maharashtra, Telangana and Uttar Pradesh.

In the current year we have implemented RWBCIS in Rajasthan, Uttar Pradesh and Chhattisgarh.


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