Modi Govt Expands Crop Insurance: Floods, Animals Covered, Faster Payouts

• Crop insurance now covers floods, waterlogging, and damage from wild/stray animals, expanding beyond traditional natural calamities.
• Farmers will receive 12% interest on compensation if insurance companies delay assessment or payment.
• Crop loss assessment will now be done at the village level instead of the tehsil level for more accurate local disaster evaluation.
• Compensation rates are approx. Rs 17,000 per acre for seasonal crops and Rs 22,500 per acre for orchards/permanent crops for losses of 35% or more.
• From Kharif 2025, if state governments delay their subsidy share, the central government will still provide its share to farmers, with a 12% interest penalty for states.

Why It Matters: New crop insurance offers farmers better protection and faster compensation.