Crop & Loan Protection


Crop insurance is purchased by agricultural producers which are paddy farmers, to protect themselves against either the loss of their crops due to natural disasters such as drought and floods, also cover the perils as wild elephants attack to paddy fields.

National Insurance Trust Fund took step forward to protect farmers and strengthen them in an above mentioned unavoidable catastrophe.   The crops will be covered in both the harvesting seasons of YALA and MAHA.

Claim Settlement:

Recommendation of Regional Crop Insurance Assessing Committee shall be sent to Deputy Commissioner of District Agrarian Development Services by the Regional Agrarian Development officer, thereafter for the claim settlement the application form should submit to National Insurance Trust Fund. Towards the claim settlement, a written approval is needed from the Deputy Commissioner of District Agrarian Development Services is a condition and entire approved payments will be made to policy holders' bank account.

To Whom:

This scheme is compulsory to all farmers who were given subsidies to fertilizers.
Farmers who purchase 50Kg bag of fertilizers will be entitled to Rs. 150.00 which can be defined as Rs. 3.00 per 1Kg of a compulsory premium to become a policy holder of this insurance scheme under National Insurance Trust Fund.

Benefits:


Stage 1 Stage 2 Stage 3
Max Redress amount
    Within 30 days of cultivation 40% of redress amount
    From 31st day of cultivation to flowering stage 60% of redress amount
    From flowering to nearly harvesting stage 100% of redress amount
For 1 acre
    Rs. 4,000.00
    Rs. 6,000.00
    Rs.10,000.00
For 1 hectare
    Rs. 10,000.00
    Rs. 15,000.00
    Rs. 25,000.00

Claim Procedure:

The claim application form can be obtained from the Agricultural research and production assistant by free of charge. Application should be filled correctly and submit to Agricultural Research and Production Assistant, Unit Manager of Mahaweli Authority or Project Manager of Irrigation, within 30 days of the date of damage.

Agricultural Research and Production Assistant or Unit Manager of Mahaweli authority has to verify the details along with the President and secretary of Agricultural Organization. The confirmation should be sent to Regional Agrarian Development Officer.

Regional Agrarian Development officer has to register the claim application form, verify the details and for the settlement it should be sent to Regional Crop Insurance Assessing Committee for Farmers who receives fertilizer subsidies.

Crop Insurance Levy

The Liability

Crop Insurance Levy shall be paid by every institution under the purview of the:
  • (i) Banking Act, No.30 of 1988
  • (ii) Finance Companies Act, No. 78 of 1988; or
  • (iii) Regulation of Insurance Industry Act, No. 43 of 2000

  • Accordingly every Bank, Finance company or Insurance company registered under any of the above Acts shall be liable to Crop Insurance Levy to the National Insurance Trust Fund according to the section 14 of the Finance Act no. 12 of 2013.

    Base

    One percent (1%) of the profit after tax for a year of assessment (period of twelve months commencing on the first day of April of any year and ending on the thirty first day of March in the immediate succeeding year)

    Effective date

    Crop Insurance Levy should be paid on the profit arising on or after 01.04.2013.

    Calculation of Liability for the quarter

    Levy shall be calculated based on the estimated profit after tax in each quarter.   Estimated profit after tax for each quarter can be either:
  • 1/4 of the profit after tax of the immediate preceding year or
  • Actual profit calculated for the relevant quarter (if the actual profit is ascertainable only)

  • Adjustment for actual liability at the end of the year of assessment

    Reconciliation of actual liability with total liability declared should be done after finalizing the annual accounts (audited) for the relevant year of assessment. Additional liability arising after the reconciliation should be paid on or before the 30th September of year of assessment immediately succeeding year of assessment concerned.
    Excess payment if any shall not be refunded but can be set off against the levy payable in subsequent year/s of assessment soon.

    Penalty on default

    A penalty shall be charged where levy or part thereof such levy is not paid on or before due dates. This penalty shall be charged in addition to the levy payable. The penalty shall not arise if at least 1/4 of the previous liability is paid on the due dates subject to the payment of final liability (if any) on or after 30th September of the immediately succeeding year of assessment.

  • A penalty equivalent to ten percent (10%) of such levy shall be charged in respect of first thirty (30) days in which the payment was in default
  • Further two percent of the levy for each further period of thirty days or part of thereof, however, total penalty will not exceeding 50 percent of levy
  • No penalty shall be charged for the levy payable for the 1st quarter ended 30th June 2013, which was due on or before 31st July 2013 if such levy is paid on or before 31st October 2013 alone with levy payable for the second quarter ended 30th September 2013.

    Returns and Payments

    Payment and Return of Crop Insurance Levy should be furnished on or before 30th day of the month immediately succeeding the end of that relevant quarter.

    1st Quarter - April - June - Prior to 30th July
    2nd Quarter - July - September - Prior to 30th October
    3rd Quarter - October - December - Prior to 30th January
    4th Quarter - January - March - Prior to 30th April

    Annual returns should be furnished together with any balance payment if any on or before 30th September of year of assessment immediately succeeding year of assessment concerned. (e.g with regard to Y/A 2013/14, annual returns and payment should be furnished on or before 30th September 2014)
    Cheque should be drawn in favour of "National Insurance Trust Fund A/C No. 033-2-003-0-2467951" and furnished together with returns.
    For further details Mrs. Gayathri Soysa on T.P. No. 011-3131111 may be contacted.

    Downloads

    Download the claim Form   here
    Download the Sinhala/Tamil Claim Form   here
    Download the Circular   here
    Download the Extara Ordinary Gazette of Crop Insurance Levy   here

    Check your claim

    To check your claim details please click here




    More Information:

    Feel free to contact us regarding the new Crop Insurance scheme.
    Telephone : +94 112 026 600
    email : anura@nitf.lk
    Fax : +94112323006

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