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Agriculture Insurance Company of India Limited (AIC) is a central public sector undertaking under the ownership of
Ministry of Finance A ministry of finance is a part of the government in most countries that is responsible for matters related to the finance. Lists of current ministries of finance Named "Ministry" * Ministry of Finance (Afghanistan) * Ministry of Finance and Ec ...
,
Government of India The Government of India (ISO: ; often abbreviated as GoI), known as the Union Government or Central Government but often simply as the Centre, is the national government of the Republic of India, a federal democracy located in South Asia, ...
. It offers yield-based and weather-based
crop insurance Crop insurance is purchased by agricultural producers, and subsidized by the federal government, to protect against either the loss of their crops due to natural disasters, such as hail, drought, and floods, or the loss of revenue due to declines ...
programs in almost 500 districts of India. It covers almost 20 million farmers, making it the biggest crop insurer in the world in number of farmers served. Agriculture Insurance Company of India Limited is a development finance institution headquartered out of
New Delhi New Delhi (, , ''Naī Dillī'') is the capital of India and a part of the National Capital Territory of Delhi (NCT). New Delhi is the seat of all three branches of the government of India, hosting the Rashtrapati Bhavan, Parliament Ho ...
,
India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
AIC aims to provide insurance coverage and financial support to the farmers in the failure of any of the notified crop as a result of natural calamities, pests and diseases to restore their creditworthiness for the ensuing season; to encourage the farmers to adopt progressive farming practices, high value in-puts and higher technology; to help stabilize farm incomes, particularly in disaster years. The plan provides comprehensive risk insurance for yield losses due to natural fire and lightning, storms, hailstorms, cyclone, typhoon, tempest, hurricane, tornado flood, inundation, landslide, drought, dry spells, pests/diseases, etc.


Incorporation

AIC was incorporated on 20 December 2002 with an authorized capital of Rs. 1500 crore. The initial paid-up capital was Rs. 200 crores, which was subscribed by the promoting companies,
General Insurance Corporation of India General Insurance Corporation of India Limited abbreviated as GIC Re is a central public sector undertaking under the ownership of Ministry of Finance, Government of India. It was incorporated on 22 November 1972 under Companies Act, 1956. GIC ...
GIC (35%),
NABARD National Bank for Agriculture and Rural Development (NABARD) is an apex regulatory body for overall regulation of regional rural banks and apex cooperative banks in India. It is under the jurisdiction of Ministry of Finance, Government of India ...
(30%) and the four public-sector general insurance companies (8.75%) each, viz., National Insurance Co. Ltd.,
Oriental Insurance The Oriental Insurance Company Ltd. is a central public sector undertaking under the ownership of Ministry of Finance, Government of India. The headquarters is present in New Delhi. It has 29 regional offices and more than 1500 active branches ...
Co. Ltd.,
New India Assurance The New India Assurance Co. Ltd., is a central public sector undertaking under the ownership of Ministry of Finance, Government of India. It is based in Mumbai, Maharashtra. "It is the largest nationalised general insurance company of India ...
Co. Ltd., and United India Insurance Co. Ltd. AIC is under the administrative control of
Ministry of Finance A ministry of finance is a part of the government in most countries that is responsible for matters related to the finance. Lists of current ministries of finance Named "Ministry" * Ministry of Finance (Afghanistan) * Ministry of Finance and Ec ...
, Government of India, and under the operational supervision of
Ministry of Agriculture An agriculture ministry (also called an) agriculture department, agriculture board, agriculture council, or agriculture agency, or ministry of rural development) is a ministry charged with agriculture. The ministry is often headed by a minister ...
, Government of India.
Insurance Regulatory and Development Authority The Insurance Regulatory and Development Authority of India (IRDAI) is a regulatory body under the jurisdiction of Ministry of Finance , Government of India and is tasked with regulating and licensing the insurance and re-insurance industrie ...
(IRDA), Hyderabad, India, is the regulatory body governing AIC.


Commencement of business

AIC commenced its business operations from 1 April 2003 by taking over the implementation of the "National Agricultural Insurance Scheme" (NAIS) from GIC. AIC has been designated by the Govt., of India as the "Implementing Agency" of NAIS, its country-wide crop insurance program.


Offices and products

AIC has 18 regional offices in state capitals across India. AIC sells agriculture and allied insurance products and schemes. A significant amount of business is derived out of the yield-based "National Agriculture Insurance Scheme (NAIS)", "National Crop Insurance Programme (NCIP)" and the "Weather Based Crop Insurance Scheme (WBCIS)". Some other products of AIC, developed in-house, are:


Rainfall Insurance Scheme for Coffee (RISC)

Coffee Rainfall insurance is a unique rainfall insurance product designed in consultation with Coffee Board, Central Coffee Research Institute and coffee growers of the states of Karnataka, Kerala and Tamil Nadu. The rainfall insurance provides effective risk management aid to those coffee growers likely to be impacted by adverse rainfall incidence. Agriculture Insurance Company of India Ltd. compensates the insured against the likelihood of diminished coffee output/yield resulting from shortfall / excess in the actual rainfall (as the case may be) for different coverage options. The insurance operates during 1 March to 31 August.


Bio-fuel Tree/Plant Insurance Policy

Named-peril insurance covering six different species of plants/trees, available for commercial production of Bio-diesel, with optional cover against drought risk.


Cardamom Plant & Yield Insurance

The scheme is designed in consultation with Spices board to provide conventional cover against death/loss of plant bushes. Cover available for small and large cardamom varieties.


Potato Crop Insurance

Parametric named-peril insurance linked to plant population, available for potato growers under contract farming.


PulpWood Tree Insurance Policy

The policy covers against pecuniary loss suffered on account of total loss or damage to the trees occasioned by specific perils/risks like fire, flood, cyclone, storm, frost, pests and diseases.


RainFall Insurance Scheme For Coffee (RISC)

Failure of Blossom shovers, Backing showers and Excess rainfall during monsoon and post monsoon seasons affect the crop yield. Scheme offers cover and is implement in all coffee growing zones of Andhra pradesh, Assam, Karnataka, Kerala, Mizoram, Odisha and Tamil Nadu with subsidy support from Government.


Rubber Plantation Insurance

Covers death/loss of rubber trees against natural calamities and other non preventable perils, applicable to both mature and immature plants, based on establishment cost and loss of future returns.


Varsha Bima / RainFall Insurance

Covers anticipated shortfall in crop yield on account of deficit and excess rainfall, consecutive dry and wet days, etc. It is voluntary for all classes of cultivators who stand to lose financially upon adverse incidence of rainfall and they can take insurance under the scheme. It is available for many of the seasonal field crops.


Coconut Palm Insurance Scheme

Named peril insurance designed in consultation with Coconut Development Board (CDB), covering coconut palms in the age groups of 4–15 years and 16–60 years, against death due to Fire, Lightning, Cyclone, Storm, Flood, Pests, and Widespread diseases, Earthquake, Severe Draught, etc. The pilot is available in specified districts of Andhra Pradesh, Goa, Karnataka, Kerala, Maharashtra, Odisha and Tamil Nadu. CDB would provide 50% subsidy on premium, and the concerned State to the extent of 25%, leaving the grower to pay the balance 25%.


Weather Insurance (RABI)

It is a mechanism for providing effective risk management aid to those individuals and institutions likely to be impacted by adverse weather incidents. The most important benefits of Weather index insurance are, * Trigger events like adverse weather events can be independently verified and measured. * It allows for speedy settlement of indemnities, as early as fortnight after indemnity period. * All growers, may it be Small/Marginal, Owners or Tenants/Sharecroppers can buy this weather insurance.


See also

* Agricultural insurance in India


References


External links

* {{Insurance in India * http://financialservices.gov.in/insurance-divisions/Public-Sector-Insurance-Companies Financial services companies established in 2002 Insurance companies of India Agriculture companies of India Companies based in New Delhi Agricultural insurance in India