“This is based on the logic that if the crop looks bad, it will give a low yield,’’ said B K Sharma, deputy general manager at AIS.

Some fine-tuning is being done on the temperature and rainfall parameters, the chief hurdle being that the met department does not have historical weather data for the districts.

The idea is now being applied to eight districts, four each in Punjab and Haryana and many progressive farmers have gone for this innovative package.

Mohinder of Kalanaur, who paid a premium of Rs 204 for his crop, received Rs 750 as compensation. Vijay and Prem Kapoor, brothers, received Rs 4,000 each in compensation.

The rates of premium vary between Rs 500 and Rs 700 per acre in different parts of the state. Though the scheme received a poor response last year, the company has already touched the 1,000-mark this year.

“We hope that more farmers will opt for it, especially after the state government has agreed to provide a subsidy of 10 per cent and banks and other financial institutions too have come forward to provide financial help to the farmers,” said B Ganeshan, regional manager of the company.

Realising the importance of insurance, the Haryana government has decided to provide crop insurance in Ambala, Karnal, Rohtak, Hisar and Bhiwani. The government has also decided to provide 10 per cent subsidy on the premium to small and marginal farmers.