MINISTER OF THE STATE IN THE MINISTRY OF TEXTILES
(SHRI E.V.K.S. ELANGOVAN)
(a) : Yes, Sir.
(b): The Government of India has drawn up Crop Insurance Scheme under the Catalytic
Development Programme, a centrally sponsored scheme of sericulture which is being
implemented in various Sericulture practicing States from the IX Plan onwards, in order
to support the sericultural farmers from incurring losses from natural calamities. The
Insurance Scheme is applicable to Univoltine/ Bivoltine/ Multivoltine/Pure or Hybrid
races of all silkworm types. These Insurance Schemes are implemented through different
Insurance Companies, viz., National Insurance Co. Ltd.; United India Assurance Co. Ltd.;
Oriental Insurance Co. Ltd., which are designed to meet the immediate needs for
implementation in the developmental programs by Government and Non-Governmental
Organizations.
(c )&(d): The Scheme has not been performing well due to the following reasons:
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# Response is low as the sum assured is very low and moreover, the premium is also low.
# High rate of Claims.
# No proper mechanism to certify the Claims.
# Inordinate delay in settlement of Claims by the Insurance Companies.
(e): The Government of India through the Central Silk Board has consulted different
Insurance companies for crop insurance in sericulture. The New India Assurance Co. Ltd.
has now come forward with a New Scheme to take the Crop Insurance in Sericulture which is
being considered for implementation during the XIth Plan.