Agriculture Insurance Company of India

Agriculture Insurance Company of India Limited (AIC) is an Indian public sector undertaking headquartered in New Delhi. It is a government-owned agricultural insurer under ownership of the Ministry of Finance, Government of India.

AIC was designated by the Government of India as the sole “Implementing Agency” for its flagship Crop Insurance Program, “National Agricultural Insurance Scheme” (NAIS). NAIS was implemented in most of the States till Rabi 2015-16. AIC also implemented National Crop Insurance Program (NCIP) w.e.f. November 2013 to Rabi 2015-16. There were 3 components of NCIP i.e. Modified National Agricultural Insurance Scheme (MNAIS), Weather Based Crop Insurance Scheme (WBCIS) and Coconut Palm Insurance Scheme.

From Kharif 2016, the Govt. has launched a new Crop Insurance Scheme – Pradhan Mantri Fasal Bima Yojna (PMFBY). AIC is the leading Implementing Agency of this Scheme.

Since inception, AIC is the leading crop insurer of the country and is the largest insurer in term of number of farmers insured in the world and presently the Market Leader with more than 50% market share of Crop Insurance in India.

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 GIC (35%), NABARD (30%) and the four public-sector general insurance companies (8.75%) each, viz., National Insurance Co. Ltd., Oriental Insurance Co. Ltd., New India Assurance Co. Ltd., and United India Insurance Co. Ltd.

AIC is under the administrative control of Ministry of Finance, Government of India, and under the operational supervision of Ministry of Agriculture, Government of India. Insurance Regulatory and Development Authority (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 distributes agriculture and allied insurance products and schemes throughout the country. A significant amount of business is derived from Government’s Flagship Crop Insurance Schemes viz. Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS).

Schemes & Products of AIC are:

Government Crop Insurance Schemes:


 * Pradhan Mantri Fasal Bima Yojana (PMFBY) - PMFBY is a Yield-Guarantee scheme which operates on the basis of homogenous area being the unit of insurance. However, losses due to localised perils (Hailstorm, landslide & inundation) and Post-Harvest losses due to specified perils, (Cyclone/Cyclonic rain & Unseasonal rains) are assessed at the affected insured field of the individual insured farmer.
 * Restructured Weather Based Crop Insurance Scheme (RWBCIS) - RWBCIS aims to mitigate the hardship of the insured farmers against the likelihood of financial loss on account of anticipated crop loss resulting from adverse weather conditions relating to rainfall, temperature, wind, humidity etc. RWBCIS uses weather parameters as “proxy‟ for crop yields in compensating the cultivators for deemed crop losses. Payout structures are developed to the extent of losses deemed to have been suffered using the weather triggers.
 * Bangla Shasya Bima Scheme (BSBS) - This Scheme of Government of West Bengal is implemented by AIC, with technology support from NRSC (ISRO). This Scheme covers Prevented Sowing, Mid-Season Adversity, and End of Season claims.
 * Coconut Palm Insurance Scheme (CPIS) - 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 Drought, 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%.

In-House Crop and Agriculture Allied Insurance Products:


 * Sampoorna Ritu Kawach (SRK) - This insurance product will compensate the policyholder against the possibility of crop loss whenever any extreme weather condition beyond a fixed limit occurs. The weather parameters considered for this product are Rainfall, Temperature, Humidity, Sunshine, etc. The product will provide cover based on single or a combination of these parameters. Customisation as per the client requirement may be done.
 * Sampoorna Fasal Kawach (SFK) - This product covers both parametric indices (such as rainfall, temperature, windspeed, etc.) and satellite-based indices (such as NDVI, LAI etc.). Add-on perils such as Landslide, Hailstorm, Inundation, Tree Fall Consequent to High Winds and Cloud Burst can also be covered. This insurance product is applicable to corporates or an affinity group including farmers, producer organisations engaged in farming of selected crop. The product shall be offered for all crops not covered under mainstream government schemes in any geographic location within India with adequate infrastructure and facilities to grow the crop.
 * Laghu Fasal Kawach (LFK) - This micro insurance product covers damage to crop yield pertaining to unfavourable weather conditions. The covers provided under the product are based on weather parameters, from which a single or a combination of covers can be chosen.


 * Fasal Bhavantar Kawach (FBK) - The product provides protection to policyholders against unexpected fall in market price of the insured crop. i.e., if market prices fall for insured crop to a level below the threshold support price AIC will indemnify the policyholder by compensating the difference between this threshold support price and the market modal price. The basic benefit will depend upon various parameters which will be decided mutually by policyholder and AIC at the onset of the policy. These parameters include the threshold support price, exit price, indemnity level, notional yield and area insured with respect to the insured crop.


 * Consequential Crop Loss (CCL) - This innovative index-based product by Agriculture Insurance Company of India Limited (AIC) shall compensate the insured, against the indirect financial losses in various business activities (i.e., consequential losses) incurred due to diminished crop output/yield, estimated though proxy indicators of indices and/or through individual loss assessment for insured crops. Weather Indices are used as proxy indicators, which are based on the weather parameters.


 * WBCIS for Cardamom - Spices Board, India under Ministry of Commerce & Industry is implementing Weather Based Crop Insurance Scheme for Cardamom in Kerala through Agriculture Insurance Company of India Ltd. This scheme is intended to provide insurance protection to Cardamom Growers against adverse weather incidence which are deemed to adversely impact the cardamom crop as per the weather data recorded in the notified Reference Weather Stations (RWS). This scheme also indemnifies farmers from specific notified localised calamities on individual basis through survey as per scheme provisions.


 * Saral Krishi Bima - A unique and comprehensive parametric insurance product covering and compensating the insured against the economic losses suffered on account of occurrence of perils as indicated by several direct proxy indicators like extreme weather conditions or notified calamities and indirect proxy indicators like deviation in NDVI, LSWI, fAPAR etc., either in isolation or concurrently. All activities in agricultural and allied sector namely Livestock, Aquaculture, Sericulture, Lac Culture, Apiculture, Vermiculture, Silviculture, Forestry & Logging, Structures, Machinery and Labour and any other activity falling under the purview of agriculture and allied sector are covered under this product.


 * Sampoorna Pashudhan Kawach - This policy covers the risk faced by the farmers in livestock rearing. This policy covers various breeds and varieties of livestock like Milch cows, Milch buffaloes, Calves/Heifers, Stud Bulls, Bullocks (castrated bulls)/ Castrated Male buffaloes, pigs, camel, sheep & goat, horse/pony/mule/donkey/yak/others and poultry; whether indigenous, cross-bred or exotic. This is an indemnity policy where the claims are payable as per the covers mentioned in Policy.


 * Shrimp Insurance Policy - The Policy is applicable to Prawn/Shrimp farms either Fresh water or Brackish water duly registered with Licensing Authority and complying with relevant guidelines (State/Central Agencies) and culturing Prawns/Shrimps of the below mentioned species as per the recommended practices by State/Central agencies.


 * Sinchai Pranali Bima - The Policy is applicable to all individual farmers, sharecroppers, contract farmers, corporates and affinity groups operating in agriculture and allied sectors, co-operative societies, self-help groups, joint liability groups, Farmer Producer Organisations (FPOs) and individual agriculturalists, Central Government and/or State Government organisations, Micro finance institutions, Banks, Regional Rural banks, Non-Government Organisations etc. using Irrigation Systems for Agriculture & Allied Activities, or involved in Agriculture Farming. This product is offered to indemnify the insured for financial losses arising due to total loss or partial damage of the listed irrigation systems due to perils mentioned in policy.