trust that takes care of today & tomorrow 1 welcome agriculture insurance company of india ltd....

Trust that takes care of Today & TomorrowTrust that takes care of Today & Tomorrow

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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

Trust that takes care of Today & Tomorrow

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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





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


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


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

trust that takes care of today & tomorrow 1 welcome agriculture insurance company of india ltd....

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