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Unified Package Insurance Scheme

Unified Package Insurance Scheme

Unified Package Insurance Scheme

Unified Package Insurance Scheme aims at providing financial protection to farmers associated with agriculture activities, thereby ensuring the food security, crop diversification and enhancing growth and competitiveness of the agriculture sector besides protecting farmers from financial risks. Under this scheme, the Government provides yield-based crop insurance to the farmer based on his ownership rights of land. In this article, we will look at the Unified Package Insurance Scheme in detail.

Know more about the National Agricultural Insurance Scheme

Importance of Unified Package Insurance Scheme

The importance of Unified Package Insurance Scheme is explained in detail below;

  • This scheme is designed to take care of the insurance needs of citizens associated in the agriculture sector.
  • This scheme provides yield-based crop insurance to the farmer based on his ownership rights of property.
  • The scheme covers both the personal assets of the farmer like the dwelling and its contents, the other assets which help him/her in earning his livelihoods such as Agricultural Pump Sets and Agriculture Tractor owned by the farmer.
  • The Unified Package Insurance Scheme protects the farmer and his family members in case of the Accidental Death, accidental insurance protection of farmer’s school or college going children and provisioning of education fee to the student in case of death of the parents.
  • The insurance under Unified Package Insurance Scheme will be issued for one year.
  • Life insurance protection to the farmers and his family members.

Sections Covered under the Unified Package Insurance Scheme

The insurance or sections covered under the Unified Package Insurance Scheme is listed as follows:

  • Crop Insurance 
  • Personal Accident Insurance 
  • Building and Contents Insurance
  • Agriculture Pumpset Insurance (Upto 10 Horse Power)  
  • Agricultural Tractors Insurance 
  • Student Safety Insurance 
  • Life Insurance 

Section 1: Crop Insurance

The insurance coverage under the Crop Insurance will be as per the guidelines of Pradhan Mantri Fasal Bima Yojna (PMFBY) and Weather Based Crop Insurance Scheme (WBCIS). The state can choose any of these two schemes or both the scheme. 

Section 2: Personal Accident Insurance

The accident insurance scheme is offering accidental death and disability cover on account of an accident. The coverage will be as per the Pradhan Mantri Suraksha Bima Yojana – PMSBY. 


All farmers eligible for the crop insurance under PMFBY/WBCIS in the age of 18 to 70 years will be eligible to join in this scheme.

Note:  In case of multiple saving bank accounts held by an individual, the person would be eligible to join the Personal Accident Insurance scheme through one savings bank account or usurped power or civil commotion or loot.

Enrollment Modality 

For new enrolments, the cover will be issued for one year period starting from the date of enrolment, and the cover will end on next 31st May under PMFBY. 

Insurance Details

The benefits under the Unified Package Insurance Scheme will be as per the following table.

S.No Table of Benefits  Sum Insured
1 Death Rs.2 Lakh
2 Total and irrecoverable loss of both hands or loss of  both eyes or loss of sight of eye and loss of  hand or foot Rs.2 Lakh
3 Total and irrecoverable loss sight of one eye or loss of use of one hand or foot Rs.1 Lakh


The premium will be Rs.12 per annum per member. The premium will be deducted from the beneficiaries savings bank account through ‘auto debit’ facility in one instalment within the cutoff dates as mentioned under PMFBY.

Section 3: Life Insurance

Life insurance scheme with coverage as will be as per Pradhan Mantri Jeevan Jyoti Bima Yojna (PMJJBY).

Benefits of Life Insurance

Death cover will be Rs.200000 per member, and the Life Insurance Company will provide the insurance.

Eligibility Criteria

The savings bank account holder in the age of 18 years and 50 years and who have provided the consent to join the scheme during the ‘enrollment period’ are eligible to join the scheme


The premium will be deducted from the saving’s Bank Account. The premium is Rs.330 plus Service Tax. Renewal premium is chargeable according to the rate decided from time to time on Annual Renewal dates.


An assurance of Rs.2,00,000 on the death of the insured member is payable to the Nominee.

Time Period

For the farmer, the cover will be provided for one year period starting from the date of enrolment whichever is later and the cover will end on next 31st May under PMFBY. 

Section 4: Building and Contents Insurance (Fire and Allied Perils)

The insurance under this section is based on a fixed sum Insured basis. The Company will reimburse the Insured in respect of loss or damage to the Buildings/  contained in the insured premises by

  • Fire,  Explosion, Lighting of gas in domestic appliances
  • Bursting and overflowing of the water tanks, apparatus and pipes
  • Aircraft or articles dropped  
  • Riot, Strike, or Malicious damage 
  • Earthquake, (Fire or Shock) Subsidence and Landslide  damage 
  • Flood, inundation, typhoon, hurricane, storm, tempest, Tornado or Cyclone.
  • Impact damage 
  • Bush Fire

Insurance amount: 

The Sum insured has been capped at the rate of Rs.50,000 for buildings and Rs.20,000 for content. 

Section 5: Agriculture Pumpset Insurance (Upto 10 Horse Power)

This Insurance scheme covers the Centrifugal pump sets (diesel and electrical) upto 10 Horsepower capacity which are used for agricultural purposes only.

  • Scope of Scheme
  • Fire and lightning
  • Riot, Strike, malicious damage
  • Mechanical and electrical breakdown

Enrollment of Farmers

The farmers will be provided with the electrical and mechanical specifications of the pump set in the proposal form. 

  • It will include complete details of the pump set. The Sum insured under this scheme has been capped to Rs.25,000.
  • Agriculture pump sets of age upto seven years can be covered under this section

Section 6: Student Safety Insurance

Student Safety Insurance scheme covers the accidental death or disability of students. In case of death of Mother or Father, the Claim amount to be converted into the Fixed Deposit (FD) in the name of student till attainment of adulthoods.

Age Limit: Students age limit will be: 5-25 years, and parents age limit will be: 18-70 years

Documents required for settlement of claims:

  • Claim Form
  • Doctor’s report, prescriptions and a certificate confirming the nature and degree of
  • disability
  • Police Report and Postmortem Reports in case of accidental death
  • Receipts, Bills and Prescriptions of Doctor for reimbursement hospitalisation expenses
  • Medical Practitioner’s Certificate

Section 7: Agricultural Tractor Insurance

As per the provisions, conditions and endorsements as per standard Motor Policy.

Prescribed Authority

The Unified Package Insurance Scheme will be underwritten by the General Insurance Companies enrolled by the Department of Agriculture, Cooperation and Farmers Welfare under crop insurance programme or designated by Agriculture Department or through General Insurance Companies having a tie-up with concerned Financial Institution/Banks for non-crop sections of the policy.

Non-Applicability of Policy

The Company will not be liable in respect of the following conditions:

  • Loss or damage, liability or expenses (directly or indirectly), occasioned by happening through or arising from any consequences of war, invasion, the act of foreign enemy, hostilities civil war, revolution, insurrection, mutiny, military, rebellion or civil commotion or loot 
  • Loss or damage caused by the depreciation or wear &
  • Consequential loss of any kind or description.
  • Loss or damage caused by nuclear weapons.
  • This Insurance does not cover loss or damages directly arising from ionising radiation or contamination by the radioactivity from any nuclear wastes from the combustion of nuclear fuel. 

Time Limit

The Unified Package Insurance Scheme will be for one full year except for Crop Insurance. The crop insurance will be bi-annual separately for Kharif and Rabi season. The scheme is renewable from year to year. The Loanee farmers will be covered through the Banks or Financial Institutions whereas non-loanee farmer will be covered through banks and insurance intermediaries.

Application Procedure for Unified Package Insurance Scheme  

The application procedure for Unified Package Insurance Scheme is explained in detail below:

Step 1: The farmers are required to fill up and sign the proposal cum declaration form is providing all the required details in the relevant sections which they wish to avail. 

FINAL_UPISOGs_23.03.2016-15-17 (2)

Note: The farmers have to furnish the basic details of the home and dwellings in the proposal application form for Building and Contents Insurance (Fire & Allied Perils)

Step 2: The filled and signed proposal form have to be submitted along with the premium to the bank or intermediary or insurance company who will issue a stamped or signed receipt for the same. 

Step 3: The proposal form is mandatory for both loanee and non-loanee farmers.  After accepting the proposal from farmers, banks will provide a unique reference number to the proposal forms. 

Step 4: Acknowledgement will be provided by banks to the farmers. Such acknowledgements will have the same unique reference number which is given to proposal forms.

Step 5: No change in the particulars furnished in the proposal form will be admissible unless specifically agreed in writing by the insurance company. 

The Bank will continue to have an existing tie-up with the same insurance companies except for PMFBY.