Drought in Odisha is likely to hit the crop insurer of the Kharif 2015 severely. Officials estimate the claims to be settled under crop insurance may touch Rs 1000 crore, surpassing all previous records. The state government has declared 139 blocks in 21 out of total 30 districts as drought affected and crops in 5.32 lakh hectares have been damaged. In Odisha, the National Agricultural Insurance Scheme (NAIS) (Rashtriya Krishi Bima Yojana) is being implemented by the Agriculture Insurance Company of India Limited (AICIL). As on October 31, as many as 17,15, 000 farmers (including 1.5 lakh non loanee farmers) covering 15,11, 000 hectares of land have been covered under the scheme with a sum assured of Rs 5598.15 crores. The sum assured may further grow to Rs 6600 crore by November end covering 20 lakh farmers. All farmers growing insurable notified crops in the notified defined areas and availing loans from financial institutions are loanee farmers and are covered compulsorily under the NAIS. The scheme, however, is optional for non loanee farmers, who are growing insurable notified crops and have not availed institutional loans. The Odisha government has identified 10 crops to be covered under the NAIS for 2015 crop season. These are paddy, maize, groundnut, niger, red gram, cotton, jute, turmeric, ginger and banana. Gram panchayats, notified area councils and municipalities have been taken as unit for insurance of paddy. For rest of the crops, block is considered as the unit area for assessment of crop loss. Since paddy is grown all over the State, all the 30 districts have been identified as insurance coverage area. Major crops like groundnuts and maize is insured in 15 and 10 districts respectively. As far as niger, cotton, red grams, jute, turmeric, ginger and banana are concerned, farmers in selected blocks in some districts are covered under the scheme. "Given the prevailing conditions in the state, the claims settled this year may be the largest one in the history of Odisha. It will eclipse all the claims settled previously especially the whopping Rs 683 crore in 2011 when both flood and drought struck the state", Dasarathi Singh, deputy general manager, AICL (Bhubaneswar regional office) told Business Standard . In 2011, claims worth Rs 683 crore were settled in favour of 5, 99,000 farmers. Similarly, in 2013, when very severe cyclonic storm Phailin hit the state, claims worth Rs 397 crores were disbursed to 3.73 lakh peasant beneficiaries. The next year, when Hudhud struck the state, 1.75 lakh farmers claimed damage compensation. AICL is waiting the crop cutting experiment report which is likely to arrive by the end of March 2016 to calculate the extent of crop loss. Any claims over and above the premium collection in case of cereals, oil seeds and pulses will be shared between the Centre and the state equally. Source - http://www.business-standard.com