The National Agricultural Insurance Scheme is vital for providing insurance cover to farmers, across regions, across seasons and across crops. This paper comprehensively reviews the NAIS and suggests changes to make it more effective. The paper is based on a detailed analysis of exhaustive data for 11 crop seasons, covering the rabi season of 1999-2000 onwards up to the same in 2004-05. Field investigations were also conducted in Haryana, Rajasthan, Andhra Pradesh, Madhya Pradesh and Gujarat to assess the response of farmers, bankers and other stakeholders. The authors also rely on discussions with knowledgeable persons like government functionaries from the department of agriculture, bankers, academicians and farmer representatives in Nagpur, Jaipur and Hyderabad.