More crops to come under weather cover

Agriculture Insurance Co to offer insurance to fruits, vegetables and flowers.

Agricultural Insurance Company of India Limited (AIC) is planning to extend weather insurance cover to other crops including fruits, vegetables and flowers. The company, which launched its weather insurance on a pilot basis in five districts of Tamil Nadu, is currently covering only paddy crop.

Speaking to Business Standard, C Anbarasu, regional manager (Tamil Nadu, Puducherry and Andaman & Nicobar Islands), AIC, said the additional crops would come under the insurance cover from December 15. The insurer has written to the state agriculture department in this regard.

To start with, AIC is planning to offer insurance cover for mango, which will soon be followed by other crops. New insurance plans, which will offer insurance claim against rainfall, temperature, humidity and even wind velocity, are expected to be introduced for such crops, he added.

The pilot project started in September this year and the company has so far collected premium of Rs 18 lakh. Both state and central governments have together contributed Rs 80 lakh as premium for this crop. To increase the penetration in the state, the state government has set aside Rs 2 crore, he added.

The districts, which are currently covered include Virudhunagar, Perambalur, Salem, Dharmapuri and Ariyalur. Tamil Nadu is the tenth state to run a weather insurance plan on a pilot basis. The pilot project will continue for around 2 years and based on its success, it would be extended to other parts of the state.

Meanwhile, farmers cultivating cholam (corn) and groundnut are now being brought under the National Agricultural Insurance Scheme by the state agriculture department. AIC is providing the insurance cover. The scheme will provide comprehensive risk coverage against the yield losses owing to drought, dry spells, pest attacks, diseases, inundation, natural fire and storms.

In 2007-08, the company settled claim to the tune of Rs 279 crore against the collected premium of Rs 20 crore. For the current fiscal, it has set a target of Rs 100 crore as premium, said Anbarasu.