Crop Insurance

(1) The Minister may from time to time by Order published in the Gazette determine the crop or crops in respect of which, and the area or areas in which, there shall be compulsory insurance as provided in this Act against loss of such crop or crops.

(2) Each crop and each area determined by Order made and published under subsection (1) is hereafter in this Act referred to respectively as a ” specified crop ” and a ” specified area “.

(1) Subject to the provisions of subsection (3), a Deputy Commissioner or the Senior Assistant Commissioner or any other officer authorized in that behalf by the Commissioner shall, in regard to each specified area, determine-

Provided that where according to a determination made under section 22 of the Paddy Lands Act, No. 1 of 1958, the rent payable for any extent of paddy land is a portion of the total yield of paddy from that extent, the owner’s share of the paddy crop from such extent shall be determined under the preceding provisions of this subsection to be such portion, and the tenant’s share of such paddy crop shall be determined under the preceding provisions of this subsection to be the portion of such paddy crop remaining after deduction therefrom of the owner’s portion.

(2) Any such total extent of land bearing any specified crop as is determined under paragraph (a) of subsection (1) in respect of any specified area is hereafter in this Act referred to as the ” insurable acreage ” in respect of that crop in that area.

(3) Any of the following lands may, if a Deputy Commissioner or the Senior Assistant Commissioner or any other officer authorized in that behalf by the Commissioner in his discretion so determines, be excluded from the insurable acreage determined for any specified area: –

(4) A Deputy Commissioner or the Senior Assistant Commissioner or any other officer authorized in that behalf by the Commissioner shall notify the determination made under subsection (1) in such manner as he may consider expedient to the persons affected by such determination.

(5) Any person who is affected by a determination made under subsection (1) may, if he is aggrieved by that determination, make a written appeal from such determination to the Commissioner within fourteen days after such determination is notified to him under subsection (4). Every such appeal shall state the grounds of appeal.

(6) An appellant in any appeal made to the Com missioner under subsection (5) shall be entitled, by himself or by representative, to appear before and be heard by the Commissioner on such appeal.

(7) The Commissioner may confirm or vary the determination from which an appeal is made to him under subsection (5), and his decision on such appeal shall be final and conclusive and shall not be called in question in any court.

(8) A determination made under subsection (1) shall not take effect during the period within which an appeal may be made from such determination.

(9) Where no appeal has been made to the Com missioner from any determination under subsection (1), such determination shall take effect immediately after the expiry of the period within which an appeal from such determination may be made.

(10) Where a determination under subsection (1) is confirmed by the Commissioner in appeal, that determination shall take effect from the date of such confirmation.

(11) Where a determination under subsection (1) is varied in appeal by the Commissioner, that determination as so varied shall take effect from the date of such variation.

(12) A determination which takes effect in accordance with the preceding provisions of this section shall be in force until it is superseded by a fresh determination.

(1) Where a land in a specified area is for the first time cultivated for the purpose of producing any specified crop, the owner or tenant of such land shall before such cultivation is concluded, notify in writing to the Assistant Commissioner of the Administrative District in which such land is wholly or mainly situated or to the local insurance agent that such land is being cultivated for the first |time for the purpose of producing such crop.

(2) Where a land in a specified area is not being cultivated in any season, the owner or tenant of such land shall notify to the Assistant Commissioner of the Administrative District in which such land is wholly or mainly situated or to the local insurance agent that such land is not being cultivated in that season.

(3) Where a change of ownership or tenancy of a land included in an insurable acreage occurs, the new owner or tenant shall, within thirty days after he becomes such owner or tenant, notify in writing the new ownership or tenancy and the new owner’s or the new tenant’s share of the crop produced from such land to the Assistant Commissioner of the Administrative District in which such land is wholly or mainly situated or to the local insurance agent.

(4) Any person who fails to comply with the provisions of subsection (1) or subsection (2) or sub- section (3) shall be guilty of an offence and shall, on conviction after summary trial before a Magistrate, be liable to a fine not exceeding two hundred rupees.

(5) Any such facts relating to a land included in an insurable acreage as are notified under subsection (1) or subsection (2) or subsection (3) shall be taken into account for the purpose of revising such acreage.

(1) Where one land or two or more lands in an insurable acreage is or are owned by only one person or in common by two or more persons and there is no tenant in respect of such land or lands, the insurance unit of such owner or co-owners shall be such land or lands.

(2) Where one land or two or more lands in an insurable acreage is or are owned by only one person or in common by two or more persons and there is one tenant or there are several tenants of such land or lands, then-

Provided that where in respect of any land in any insurable acreage there are a tenant and one or more subtenants, then, for the purposes of the preceding provisions of this subsection, the person entitled to receive the rent from the subtenant who is the cultivator of that land shall be deemed to be the owner of that land and such cultivator shall be deemed to be the tenant of that land, and accordingly the insurance unit of each of the persons so deemed to be owner and tenant shall be such land.

(3) Where a person who is the owner of any land or lands in any insurable acreage is a tenant of any land or lands in that acreage, then, the insurance unit of that person shall be the land or lands of which he is the owner and the land or lands of which he is the tenant.

(1) Before the commencement of each term of insurance for the specified area in which the insurance unit of any person or persons is wholly or mainly situated, he or they shall, subject to the provisions of subsection (3) and subsection (4), be deemed to have entered into a contract of insurance with the Commissioner against the loss of any specified crop on that unit due to any such cause (hereafter in this Act referred to as a ” specified cause “) as the Minister may specify by Order published in the Gazette.

(2) Every specified cause shall be notified to the public by the Commissioner in each specified area in such manner as he may determine.

(3) Where co-owners of an insurance unit cultivate that unit in rotation under the system of cultivation known as “thattu maru “, then, subject to the provisions of subsection (4), the co-owner who cultivates that unit for any season shall, before the commencement of that season, be deemed to have entered into a contract of insurance for that season with the Commissioner against the loss of any specified crop on that unit due to any specified cause:

Provided that any such co-owner who cultivated an insurance unit in the 1958-1959 Maha season shall, notwithstanding that the whole or part of such season has elapsed, be deemed to have entered into a contract of insurance for that season with the Commissioner.

(4) A Deputy Commissioner or the Senior Assistant Commissioner or any other officer authorized in that behalf by the Commissioner may exempt any person from the provisions of subsection (1) or subsection (3).

(1) The first term of insurance shall be three years reckoned from the date of commencement of the 1953-1959 Maha season notwithstanding that the whole or any portion of such season has already elapsed when such term of insurance applies to any specified area, and every other term of insurance shall be determined by the Minister by Order published in the Gazette:

Provided that in the case referred to in subsection (3) of section 11, a term of insurance shall consist of a season.

(2) The Assistant Commissioner of an Administrative District in which a specified area wholly or mainly lies shall, at least thirty days before the commencement of each term of insurance, notify the period constituting such term to the owners and tenants of the lands constituting the insurable acreage in that area. Where a term of insurance is once notified, no further notification shall be made until that term is altered:

Provided that the preceding provisions of this sub-section shall not apply in regard to the first term of insurance referred to in subsection (1):

Provided further that where a term of insurance consists of a season and a part of that season has already elapsed in any specified area when that area is determined under section 7, then, in lieu of the thirty days’ notice referred to in the preceding provisions of this subsection, notice of the period constituting the term of the insurance shall be given forthwith after the determination of the specified area.

(1) The Commissioner shall issue to every person who is deemed to have entered into a contract of insurance with him under this Act an insurance policy in such form as he may determine.

(2) The Commissioner may insert in any insurance policy issued under this Act any term or condition not inconsistent with any provision of this Act.

(3) The following conditions shall be inserted in every insurance policy issued under this Act: –

(1) An insurance policy issued under section 13 in respect of any insurance unit shall be deemed to cover such unit during the period of cultivation in each season in the term of the insurance:

Provided that where any specified crop is cultivated in any specified area during the Maha season and the Yala season, the expression ” each season ” occurring in the preceding provisions of this subsection shall, in the application of those provisions to an insurance policy issued under section 13 in respect of an insurance unit wholly or mainly situated in that specified area, be deemed not to include the Yala season if it is so determined by the Minister by Order made under subsection (2).

(2) The Minister may, before the commencement of a term of insurance for any specified area in which any specified crop is cultivated during the Maha season and the Yala season, declare, by Order published in the Gazette, that the expression ” each season ” occurring in subsection (1) shall, in the application of that sub-section to an insurance policy issued under section 13 in respect of an insurance unit wholly or mainly situated in that specified area, be deemed not to include the Yala season:

Provided that where the first term of insurance referred to in subsection (1) of section 12 is applicable to any specified area, such declaration may be made by the Minister forthwith after the date of application of that term to that specified area.

(3) A Deputy Commissioner or the Senior Assistant Commissioner or any other officer authorized in that behalf by the Commissioner shall determine the cultivation period for each specified area in respect of each season, and shall notify, in such manner as he may consider expedient, the determination to the owners and tenants of the lands constituting the insurable acreage in that area. A Deputy Commissioner or the Senior Assistant Commissioner or any other officer authorized in that behalf by the Commissioner may amend a determination in force under this subsection, and any such amendment shall be notified in like manner as the determination to which the amendment relates and shall take effect from the season succeeding that in which the amendment is made.

(1) The Commissioner shall determine, and may from time to time alter, the amount of the premiums to be paid for insurance policies issued under this Act.

(2) The Commissioner may fix different amounts of premiums for different specified areas or for portions of the same specified area.

(3) Where any land referred to in subsection (4) of section 8 is included in an insurable acreage, the amount of the premiums fixed by the Commissioner for insurance policies issued under this Act in respect of that land may be higher than in any other case.

(4) The amount of a premium in respect of an insurance policy issued under this Act may, according as the Commissioner may decide, be paid-

(5) The premiums in respect of an insurance policy issued under this Act shall be paid, within the time allowed therefor in such policy, to the local insurance agent.

(6) The Commissioner shall notify to the owners and tenants of lands constituting an insurable acreage in a specified area the local insurance agent or agents in respect of that area.

(1) If a person who is liable to pay any sum as the whole or a part of a premium in respect of any insurance policy issued under this Act fails to pay that sum within the time allowed therefor in that policy, that sum shall be deemed to be in default and, together with the interest payable thereon under section 17,-

(2) Where a Cultivation Committee is requested by the Commissioner under subsection (1) to deduct any sum from the rent payable in respect of any extent of paddy land, the provisions of subsection (3) of section 25 of the Paddy Lands Act, No. 1 of 1958, shall apply’ in respect of such deduction as if such Cultivation Committee were empowered by that Act to make such deduction.

(3) In this section, the expressions ” Cultivation Committee “, ” landlord ” and ” paddy land ” have the same meaning as in the Paddy Lands Act, No. 1 of 1958.

(a) unless-

(b) unless the loss occurs at such a stage that there is no time to raise on the insured extent of land a fresh crop of the same kind as the damaged crop.

(1) Where the loss of any specified crop is notified under section 21, the holder or holders of the insurance policy relating to such crop may prefer a written claim to indemnity in respect of such loss to the Assistant Commissioner of the Administrative District in which the extent of land to which such policy relates is wholly or mainly situated, and upon receipt of such claim that Assistant Commissioner shall transmit it, together with his report thereon, to a Deputy Commissioner or the Senior Assistant Commissioner or any other officer authorized in that behalf by the Commissioner.

(2) Upon receipt of a claim to indemnity, a Deputy Commissioner or the Senior Assistant Commissioner or any other officer authorized in that behalf by the Commissioner shall, if the claimant is not entitled to such indemnity, reject such claim, and shall in writing communicate his decision to reject such claim to the claimant.

(1) Where a claim to indemnity under an insurance policy issued under this Act is proved to the satisfaction of a Deputy Commissioner or the Senior Assistant Commissioner or any other officer authorized in that behalf by the Commissioner, and the holder or holders of that policy is or are entitled to indemnify in accordance with the provisions of this Act and the terms and conditions of that policy, such holder or holders shall be awarded an indemnity computed as hereinafter provided.

(2) Where two or more persons are entitled to the indemnity awarded under subsection (1), a Deputy Commissioner or the Senior Assistant Commissioner or any other officer authorized in that behalf by the Commissioner shall apportion the amount of the indemnity among those persons in proportion to their interests in the crop to which that indemnity relates.

(1) The rates at which indemnity is payable in respect of any specified crop shall be determined and notified in the Gazette by the Minister before each season.

(2) The rates determined by the Minister under sub-section (1) shall vary-

(1) Where a Deputy Commissioner or the Senior Assistant Commissioner or any other officer authorized in that behalf by the Commissioner rejects a claim to indemnity under an insurance policy issued under this Act, the claimant may, within thirty days after the communication to him of the decision to reject such claim, make a written appeal from such decision to the Commissioner.

(2) Where a person who is awarded indemnity under a policy of insurance issued under this Act is dissatisfied with the amount of the indemnity, he may, within thirty days after the award of indemnity is communicated to him, make a written appeal from that award to the Commissioner.

(3) Every appeal under this section shall state the grounds of appeal.

(4) An appellant in any appeal under this section shall be entitled, by himself or by representative, to appear before and be heard by the Commissioner on such appeal.

(5) The Commissioner’s decision on any appeal under this section shall be final and conclusive and shall not be called in question in any court.

(a) has concealed or misrepresented any material fact or committed any fraud relating to the insurance, or

(b) fails to comply with any term or condition of such policy.

(1) There shall be established a Board which shall be called the Crop Insurance Advisory Board and which shall consist of-

(2) The term of office of a member of the Board who is appointed by the Minister shall be determined by the Minister and be specified in the letter of appointment. The Minister may, without assigning a reason, terminate the appointment of such member.

(3) The quorum for any meeting of the Board shall be five.

(1) An Insurance Fund consisting wholly of money or partly of money and partly of the specified crops in which premiums may be paid in respect of insurance policies issued under this Act shall be established.

(2) There shall be credited to the Insurance Fund-

(3) Where the amount of the indemnities payable in respect of any season under the insurance policies issued under this Act does not exceed fifteen per centum of the maximum payable under section 25 as indemnities under such policies, such amount shall be paid out of the Insurance Fund.

Where such amount exceeds such fifteen per centum, the part of such amount which is equal to such fifteen per centum shall be paid out of the Insurance Fund and the balance of such amount shall be paid out of moneys provided for the purpose by the Government.

(4) The amount of any indemnity under an insurance policy issued under this Act shall be paid in cash or in the specified crop to which that policy relates or partly in cash and partly in that specified crop.

(5) The Commissioner may, as often as it is necessary, sell any part of the Insurance Fund which consists of specified crops, and shall credit to such Fund the proceeds of the sale after deducting therefrom the expenses incurred in the sale.

(6) The expenses incurred in the storing of any specified crops received as premiums in respect of insurance policies issued under this Act shall be paid out of the Insurance Fund.

(7) The expenses incurred in the payment by way of commission to insurance agents of such sums as may be determined by the Minister with the concurrence of the Minister of Finance shall be paid out of the Insurance Fund.

(8) Such part of the Insurance Fund as is not required for the purposes of subsection (3) or for the repayment of any loans granted for the purposes of this Act may be applied to any such purpose connected with agriculture as may be determined by the Minister with the concurrence of the Minister of Finance.

(9) The accounts of the Insurance Fund shall be audited annually by the Auditor-General.

(1) The Commissioner, a Deputy Commissioner, an Assistant Commissioner or any officer authorized in that behalf by the Commissioner may enter and inspect any land on which any specified crop is raised, and it shall be the duty of every person who is in occupation of such land to permit and assist such inspection.

(2) Every person who fails to comply with the provisions of subsection (1) shall be guilty of an offence and shall, on conviction after summary trial before a Magistrate, be liable to a fine not exceeding one hundred rupees.

(1) Where the damage to any specified crop on any insured extent of land occurs at such a stage that there is still time to raise on that extent a fresh crop of the same kind as the damaged crop, the Commissioner may direct the holder or holders of the policy of insurance relating to that extent to raise such a fresh crop on that extent.

(2) Where the damage to any specified crop on any insured extent of land occurs at such a stage that there is no time to raise on that extent a fresh crop of the same kind as the damaged crop, the Commissioner may release that extent from the insurable acreage so that-

(1) No person shall raise on any insured extent of land any crop other than the crop to which the policy of insurance relates or put that extent to any other use unless that extent has been released from the insurable acreage.

(2) Every person who contravenes the provisions of subsection (1) shall be guilty of an offence and shall, on conviction after summary trial before a Magistrate, be liable to a fine not exceeding one hundred rupees.

(1) Every person who is entitled to the whole or a share of any specified crop from any land in a specified area shall maintain such records relating to that crop and his interest therein as may be prescribed.

(2) The Commissioner or such officer as may be authorized in that behalf by him may inspect the records kept under subsection (1), and it shall be the duty of the persons in charge of such records to permit and assist such inspection.

(3) Every person who fails to comply with any provision of this section shall be guilty of an offence and shall, on conviction after summary trial before a Magistrate, be liable to a fine not exceeding one hundred rupees.

(1) The Minister may make regulations for giving effect to the provisions of this Act.

(2) In particular and without prejudice to the generality of the powers conferred by subsection (1), the Minister may make regulations in respect of all matters which are stated or required by this Act to be prescribed.

(3) No regulation made by the Minister shall have effect until it is approved by the Senate and the House of Representatives and until notification of such approval is published in the Gazette.