Section 9: Rate of premium.

(1) The rate of insurance premium payable under the Scheme by farmers shall be such percentage of the sum assured as the Corporation may, from time to time, determine having regard to the pure risk premium, reserve premium and administrative loading.
(2) The Corporation shall subsidise the premium payable under subsection (1) of this section at such rate not exceeding 50 per cent as it may, from time to time, determine.
(3) This subsidy on premium referred to in subsection (2) of this section shall
(a) be paid to the Corporation by the Federal Government and the respective State Governments in the proportion of 37.5 per cent and 12.5 per cent respectively; and
(b) for a particular year, be paid within the first quarter of the following year.
(4) Where a State Government defaults in its payment to the Corporation, the Federal Government shall cause the amount to be deducted from funds due to the defaulting State and remitted direct to the Corporation.