India is an agrarian society with 75% of the population depending on it, for their livelihood. Agriculture or crop insurance has assumed importance with large scale damage caused due to pest attacks, crop diseases and vagaries of weather. The objective is to provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests & diseases. The list of crops being covered for insurance differs from state to state. Generally quite a few Kharif and Rabi season crops are covered. These crops are insured at the community/block/gram panchayat levels. Agriculture insurance schemes are of immense help to farmers, providing them with financial security.
The amount of premium to be paid for crop insurance depends on a number of factors like size of land of the farmer, his financial standing, number of crops being insured and the sum insured.
Agriculture Insurance Claim Procedure
Farmers can claim from the banks by submitting a claim form. The claim representative will analyse the extent of damage caused to the crops. Based on the report of the surveyor, the claim is given to farmers within a month.
Documents Required for Agriculture Insurance Claim
- The farmer must approach the designated branch / PACS and submit the proposal form in the prescribed format.
- The farmer must provide documentary evidence in regard to the possession of cultivable land (copy of the pass book and extract.
- Land revenue receipt should be enclosed
- The farmer must furnish area sown confirmation certificate, if required.
Agriculture Insurance Company of India Limited (AIC)
Agricultural Insurance schemes in India are looked after by Agriculture Insurance Company of India Limited (AIC) that has been promoted by the Government of India. This national corporation of set up exclusively to promote farmers insurance promotes 5 other organizations, each of them having individual percentage of share holdings. The names of these organizations are as follows:
- General Insurance Corporation of India (Share holding: 35 %)
- National Bank for Agriculture And Rural Development or NABARD (Share holding: 30%)
- National Insurance Company Ltd (Share holding: 8.75 %)
- New India Assurance Co. (Share holding: 8.75 %)
- Oriental Insurance Company Ltd (Share holding: 8.75 %)
- United India Insurance Co. Ltd.(Share holding: 8.75%)
For more information on the Agricultural Insurance company of India please check this link www.aicofindia.org