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Our Bureau

BANGALORE, Dec. 3

WITH the concept of self-help groups (SHGs) taking deep roots, the sponsors of such a group have embarked upon experimentation to devise new schemes such as crop insurance to ensure that the beneficiaries reduce the risk of repayment of their loans.

In a novel experiment, an NGO from Bangalore, has promoted a system of cluster level associations (CLAs), which will act as the project implementing agency for all developmental activities that are undertaken at the SHG level.

The experiment envisages formation of CLAs with two representatives from 12 to 15 SHGs in one CLA. The structured arrangement takes further groupings of project/district-level federation, which acts as a social intermediary mobilising external support and linkage to the CLAs and SHGs.

The novel idea has been experimented by Outreach, which has facilitated the formation of 2,000 SHGs.

The crop insurance scheme initiated through the medium of SHGs by Outreach has been funded by the Ford Foundation and has been aimed at providing help to the rain-fed crops such as groundnut and finger millet (ragi). Under the scheme, only members, who undertake rain-fed agriculture on their own land or leased land would be entitled to benefits of the scheme. The premium amount has been fixed at Re 1per day per acre and one member is eligible to pay for a maximum of two acres, according to Nabard.

The premium amount collected from each member is remitted to the CLA and then to the federation at the district level. The cross assessment committee of the CLA is responsible for assessing the condition of the crop and confirm crop failure with assistance from the SHGs and submit the report to the federation.

With the SHGs and members being put in direct responsibility of managing the scheme, the sponsors believe that it could take off successfully as peer pressure and good repayment record enjoyed by SHGs should help in smooth running of the insurance scheme with only genuine claims being made by the beneficiaries.

Nabard said that under the scheme, if crop failure did not occur in a year the members' premium would be added to their succeeding year's premium amount. The collected premium amount and seed fund from the Ford Foundation would be used for giving loans for income generation programmes.

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