Farmers will pay a maximum premium of 2% for all Kharif food and oilseed crops, 1.5% for Rabi food and oilseed crops, and 5% for annual commercial and horticultural crops. The difference between the premium and the rate of insurance costs payable by farmers will be split evenly between the centre and the state. The sum insured would be calculated by multiplying the scale of finance per hectare by the area of the registered crop submitted for insurance of the NICP. However, the sum insured for irrigated and non-irrigated areas would be separate.