Is crop insurance compulsory when I take a KCC and can I opt out?

Crop insurance under the national scheme used to be compulsory for loanee farmers, meaning the bank automatically enrolled your KCC crop loan and deducted the premium. That was changed and the scheme is now voluntary even for loanee farmers, so you can opt out if you choose. To opt out you generally have to give the bank a written request before the cut off date set each season; if you do not, the bank may enrol you by default and deduct the premium. Think carefully before opting out, because insurance protects you if the crop fails and a claim can even help cover your KCC dues in a bad year. If you want to stay covered, do nothing and let the bank enrol you; if you want out, submit the opt out form before the deadline. The rules and deadlines are revised, so confirm the current opt out process and date with your branch.