trust that takes care of today & tomorrow 1 welcome agriculture insurance company of india ltd....
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WELCOME
Agriculture Insurance Company of India Ltd.
Regional Office – Dehradun, Uttarakhand
Presentation on Crop Insurance
State: Uttarakhand
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About AIC
Incorporated on 20th Dec., 2002 Taken over business operations from erstwhile
Implementing Agency i.e., GIC w.e.f. 1st April 2003
Promoters: GIC (35%), NABARD (30%) and NIA, NIC, OIC & UIIC (8.75% each)
2-Tier structure - Head Quarters at New Delhi and 17 Regional Offices
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Crop Insurance Programmes
implemented by AIC in Uttarakhand
• National Agricultural Insurance Scheme (NAIS) National Agricultural Insurance Scheme (NAIS) since Rabi since Rabi 2002-032002-03
• Weather Based Crop Insurance Scheme (WBCIS) Weather Based Crop Insurance Scheme (WBCIS) since Kharif since Kharif 20102010
• Modified National Agricultural Insurance Scheme Modified National Agricultural Insurance Scheme (MNAIS) (MNAIS) since Rabi 2010-11 since Rabi 2010-11
• Uttarakhand Seb Bima Yojana (USBY) Uttarakhand Seb Bima Yojana (USBY) during 2008 & 2009.during 2008 & 2009.
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NAIS – salient features
Homogenous Area and Yield Guarantee based
Food crops / Oilseeds (FC/OS) & Annual Commercial / Horti. Crops
Compulsory for Loanee & Optional for Non-Loanee farmers
Sum Insured - Loan amount to 150% of value of Average Yield
Premium – FC/OS – Kharif - 2.5% to 3.5% ; Rabi - 1.5 to 2% and
Actuarial for Annual Commercial / Horticultural Crops
Premium Subsidy - 10% to Small / Marginal farmers
Claims in excess of 100% for FC/OS and 150% for Commercial /
Horti. Crops are shared by Central and State Govts. On 50:50 basis.
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Crops notified and insurance units under NAIS in Uttarakhand
Rabi – Wheat: Hills - Tehsils
Plain -Nyay Panchayats
Kharif - Paddy: Hills - Tehsils
Plain-Nyay Panchayats
Ragi: Hills-Tehsils
Potato & Ginger: Districts Level up to Kharif 2010. Later on covering under WBCIS since 2011
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Year wise Coverage in Uttarakhand under NAIS
(Amount in Rs. Lakhs) Year Farmers
Covered
Sum Insured
Premium
Claim Farmers Benefite
d
Claim Ratio
2002-03 5589 366 5.47 2.92 819 53.38
2003-04 10731 714 15.6 32.63 4,852 210.52
2004-05 2882 238 3.29 1.87 738 56.84
2005-06 15575 2001 27.50 235.51 1,177 856.40
2006-07 20135 4240 73.67 17.28 1,366 23.46
2007-08 33293 6225 103.17 297.12 7,657 287.99
2008-09 53008 12611 243.34 1388.75 28,487 570.66
2009-10 93174 18237 442.02 959.78 37,320 217.13
2010-11 74315 19142 574.38 1171.34 24886 203.93
2011-12 36485 9330 189.55 16.56 1628 8.74
2012-13 40148 11001 225.43 58.61 3113 26.00
Total 385335 84105 1903.42
4182.37
112043 219.73
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Kharif & Rabi Season Coverage in Uttarakhand under NAIS
(Amount in Rs. Lakhs) Kharif & Rabi Seasons Farme
rs Covere
d
Sum Insured
Premium
Claim
Farmers
benefited
Total Kharif (Kharif 2003 to Kharif 2012)Crop: Paddy, Ragi, Potato &
Ginger
203831 45272 1320.80 3006.30
74114
Total Rabi(Rabi 2002 to Rabi 2012)
Crop: Wheat
181504 38833 582.62 1176.07
37929
Total 385335 84105 1903.42 4182.37
112043
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WBCIS: Key Features
Based on Weather parameters like Frost, Heat, Humidity, Un-seasonal Rainfall & Combinations
Compulsory for Loanee & Voluntary for Non-loanee Sum insured is pre-defined and broadly equivalent to cost of
production Actuarial rates are capped at 8% for Food crops & Oilseeds & 12%
for Other crops (Commercial / Hort. Crops) Premium rates payable by farmers is the same as NAIS for FC/OS
and up to a maximum of 6% for Commercial / Horticultural crops Claims is the responsibility of Insurance Company NAIS would not be available for Loanee farmers in the Pilot areas /
crops, while Non-loanee have choice of NAIS & WBCIS
Weather Indexed ParametersWeather Indexed Parameters
Rainfall: Deficit rainfall, Excess rainfall, Unseasonal rainfall, Rainy Days.
Temperature: Hourly Chilling units ,
Temperature fluctuation
Wind Speed: High Wind Speed
Humidity: Relative Humidity
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• Automated – no need for claim lodgment• Based on the weather data received, claims are
calculated on degree of adverse deviation of weather parameters as defined in the term sheet
• WBCIS Claims = Quantum of deviation from trigger value * payout per unit of deviation, subject to ceiling of maximum payout
• WBCIS claims are disbursed within 45 days of end of contract period
• NODAL Banks / Insured Non-Loanee farmers receive the claim & details thereof through RTGS/NEFT etc
• Banks/PACS credit the claim to the beneficiary farmers’ a/c, display their name on the notice board
Claim Processing - WBCISClaim Processing - WBCIS
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WBCIS - Advantages
Trigger events can be independently verified
Moral Hazard, Adverse Selection problems can be controlled
Relatively inexpensive to operate
Wide variety of crops can be covered
Expeditious claim settlement (within 45 days of expiry of risk)
Can also be implemented for crops with no past yield data
No adverse impact of previous low yields / lower indemnity
limit
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Coverage under pilot WBCIS Since Kharif 2010- Uttarakhand
SEASON/CROPS COVERED Farmers covered
Sum Insured
Gross premium Claims
Farmers benefited
Kharif 2010 Apple & Mango 1153 564.34 67.72 124.24 1143
Rabi 2010-11 Apple,Mango, Litchi, Potato & Tomato 2246 1788.21 214.58 46.58 518
Kharif 2011 Potato, Tomato & Ginger 19858 4707.43 564.90 293.44 6536
Rabi 2011-12 Apple,Mango, Litchi, Potato & Tomato 737 506.03 60.72 153.05 736
Kharif 2012 Potato, Tomato & Ginger 17639 4745.01 569.40 2313.16 17639
Rabi 2012-13 Apple,Mango, Litchi, Potato & Tomato 1712 1304.53 156.54 83.31 1287
Kharif 2013 Potato, Tomato & Ginger 21697 5818.01 698.16 209.66 7706
Total 66807 20188.11 2368.04 3510.04 37198
Rs. In Lakhs
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APPLE INSURANCE POLICYIES / APPLE INSURANCE POLICYIES / SCHEMESSCHEMES
UTTARAKHAND SEB BIMA YOJANA (USBY) – 2007 - This was a unique hybrid product developed by
and implemented by AIC on behalf of Govt. of Uttarakhand.
Hail and Weather parameters were covered. Weather parameters covered were – chilling
requirement, temperature fluctuation, and Rainfall.
Premium was 2.5% of SI, and claims in excess of premium was paid by the Govt., --- as per NAIS.
Claims due to Hail was determined by physical verification of insured apple orchard.
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APPLE INSURANCE POLICYIES / APPLE INSURANCE POLICYIES / SCHEMESSCHEMES
UTTARAKHAND SEB BIMA YOJANA (USBY) – 2009
- This was a non-subsidized policy developed by AIC.
- Farmers had to pay premium @16% of SI. It was a single named peril policy – covering
losses due to HAIL.
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Coverage under Uttarakhand Seb Bima Yojana (USBY)-State Uttarakhand
SEASON/CROPS
COVERED Farmers covered Sum Insured
Gross premium Claims
Farmers benefited
Rabi 2007-08 Apple 1411 626.85 15.67 221.52 1279
Rabi 2009-10 Apple 354 127.70 20.35 65.08 354
Total 1765 754.55 36.02 286.60 1633
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Overall Coverage under NAIS,USBY& WBCIS-State Uttarakhand
Schemes Farmers covered Sum Insured
Gross premium Claims
Farmers benefited
NAIS 385335 84105 1903.42 4182.37 112043
WBCIS 66807 20188.11 2368.04 3510.04 37198
USBY 1765 754.55 36.02 286.60 1633
Total 453907 105047.7 4307.48 7979.01 150874
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NamaskarNamaskar