05-07-2012, 04:39 PM
Agriculture Insurance Company of India (AIC)
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Pilot Weather Based Crop Insurance Scheme
The Weather Based Crop Insurance Scheme intended to provide insurance protection to the cultivator against adverse weather incidence, such as deficit & excess rainfall, frost, heat (temperature), relative humidity, etc., which are deemed to adversely impact the Rabi crops during its cultivation period. The Scheme shall run as a Pilot in selected areas, in selected States, for selected crops.
Season
Insurance coverage under the Scheme would be provided for crops raised between October / November and April (Rabi season). If the cultivation period of a crop does not strictly fall within the above season span or crosses over to the next season, in such cases, the sowing period of the crop shall determine the season in which it has to be categorized.
Area Approach
The Scheme shall operate on the principle of “Area Approach” in selected notified Reference Unit Areas. Area Approach signifies that a “Reference Unit Area” shall be considered as a Unit-Area of Insurance for the purpose of acceptance of risk and assessment of compensation as well. Therefore, all insured-cultivators of a Notified Crop in the notified Reference Unit Area shall be deemed to be on par so far as their terms of insurance coverage and assessment of compensation are concerned.
States
To start with, the Scheme shall be implemented during Rabi 2007-08 seasons in the following States: Bihar, Chhattisgarh, Haryana, Madhya Pradesh, Punjab, and Rajasthan & Uttar Pradesh. Any addition/deletion of States may be considered by the Government of India/ Agriculture Insurance Company of India Ltd. (AIC), based on the willingness and the level of preparedness of the concerned State Government.
Geographical Coverage
1. “Reference Unit Areas” are linked to specific Reference Weather Stations.
2. “Reference Weather Stations” are those which are commissioned for providing “Weather Data” for the purpose of assessment of compensation.
3. “Reference Unit-Area” is a geographical area around a Reference Weather Station, pre-notified by the State Level Coordination Committee on Crop Insurance i.e., SLCCCI, which is deemed to be reflective of the Reference Weather Station’s Weather Data. To the extent practicable, such Reference Unit-Area shall be restricted to 25 km. radius around the Reference Weather Station in case of Rainfall, and 100 km. radius in case of other weather parameters like Frost, Heat (Temperature), Relative humidity, etc.
Crops Covered
Cereals, Millets, Pulses, Oilseeds and annual commercial / horticultural crops grown during Rabi season The main crops could be wheat, barley, gram, lentil, mustard, potato, onion, cumin, coriander, fenugreek, isabgol etc. In respect of each Reference Unit Area, the crops to be covered would be notified by the SLCCCI, whereupon would be referred to as “Notified Crops”. The crops listed above are only indicative & not exhaustive; any addition/deletion may be considered by AIC.
Cultivators Eligible for Coverage
All the cultivators (including sharecroppers and tenant cultivators) growing any Notified Crop in any Reference Unit Area shall be eligible for coverage. The Scheme shall be:
1. Compulsory: For All LOANEE APPLICANT CULTIVATORS i.e., those who have Sanctioned Credit Limit from a Financial Institution [FI] for a Notified Crop in a Reference Unit Area.
2. Voluntary: For NON-LOANEE CULTIVATORS i.e., those who do not have Sanctioned Credit Limit from any FI for a Notified Crop in a Reference Unit Area.
Financial Institution, for the purpose of the Scheme, includes all District Central Cooperative Banks and also the PACS affiliated to them, all Commercial Banks and all Regional Rural Banks, as defined in National Agriculture Insurance Scheme (NAIS).
Perils Covered
Deficit Rains, Un-seasonal / Excess Rains, Frost, Heat (Temperature), Relative humidity, etc are the weather perils, which are deemed to cause “Adverse Weather Incidence”, leading to crop loss, would be covered under the Scheme: The specific “Adverse Weather Incidence” with its timing / duration applicable to a particular Notified Crop shall be notified by the SLCCCI. The perils listed above are only indicative & not exhaustive; any addition/ deletion may be considered by AIC, based on the availability of relevant data. For the purpose of this Scheme, “Adverse Weather Incidence” would be as defined hereinafter.
Risk Period (I.E. Insurance Period)
Risk period would be from “Sowing Period” to “Maturity” of the crop. Risk period, depending on the duration of the crop and the weather parameters chosen, could vary with individual crop and Reference Unit Area, and would be notified by the SLCCCI before the commencement of risk period.
Seasonality Discipline
Risk (insurance coverage) would be accepted till commencement of the risk period. No insurance coverage is allowed once the risk period begins.
Coverage Procedure
1. Insurance coverage of Loanee Applicant Cultivators shall be through the existing network of Financial Institutions [FI] at the grass-root level, using Nodal Bank system as in National Agricultural Insurance Scheme [NAIS].
2. Insurance coverage of Non-Loanee Cultivators shall be through the existing network of FIs at the grass-root level; the Insurance Intermediaries and Authorized Representatives of AIC.
3. Nodal Bank Branches shall be paid by AIC, a Service Charge of 5% on the actual Premium amount remitted by them, being in the nature of sharing the incidental management expenses incurred by them for servicing the Scheme.
4. Insurance Intermediaries engaged by AIC for covering non-loanee cultivators would be paid remuneration at an appropriate percentage on the actual amount of premium collected through them from the farmers.
Sum Insured
Sum Insured is broadly equivalent to the ‘cost of cultivation’ and is predeclared by AIC and notified in the Notification. The Sum Insured for an individual cultivator shall be the product of the cultivator’s declared ‘area under cultivation’ (in hectare) for that Notified Crop and the Sum Insured per hectare as mentioned in the Notification. ‘Area under cultivation’ would always be expressed in terms of ‘hectare’. An individual Cultivator’s ‘area under cultivation’ (in hectare) for a Notified Crop in a notified Reference Unit Area shall be declared by him as follows:
1. Loanee Applicant Cultivators: ‘Area under cultivation’ for the Notified Crop as already declared by him in the Loan Application Form for the purpose of fixing his “Maximum Borrowing Limit [MBL]” by the Lending FI.
2. Non-Loanee Cultivators The cultivator shall declare the ‘area under cultivation’ for each Notified Crop in the Insurance Proposal Form.