ICICI Lombard to provide crop insurance for farmers in Jaunpur
- For the first time ever, the Uttar Pradesh Govt. has given notification for Weather based crop insurance scheme for farmers.
- Awarded mandate for pilot project for weather based crop insurance for 7 crops in Jaunpur
- Farmers protected against variability in weather and agricultural production.
- Quick and transparent claim settlement. Claims are automatically calculated based on the certified data received from independent third party bodies such as IMD and NCMSL
ICICI Lombard General Insurance Company Ltd., the country’s largest private sector General Insurance Company has been awarded the mandate by Govt. of Uttar Pradesh to provide weather based crop insurance for farmers in Jaunpur. The scheme offers opportunity to cover losses caused by adverse weather conditions.
This is the first time ever Uttar Pradesh Govt. has given notification for Weather based crop insurance scheme for farmers. Under this scheme the Govt. has notified 7 crops like Paddy, Maize, Jowar, Arhar, Seasum, Bajra and Urad to be covered for Kharif 2010 season. Premium subsidy for Paddy, Maize, Jowar, Arhar and Urad is upto 75% and for Seasum and Bajra subsidy is upto 65%.
Weather based crop insurance provides cover against weather-related risks faced by crops such as excess or deficit rainfall, variations in temperature and fluctuations in humidity. This scheme facilitates immediate compensation based on certified data collected from independent third party bodies such as Indian Metrological Department (IMD), Ingen Technologies Pvt. Ltd. and National Collateral Management Services (NCMSL). This transparent and objective method of claim settlement removes the need for carrying out field surveys. This makes the claim settlement a hassle-free process, as the beneficiary is not required to file a claim for loss to receive a payout. The Government of Uttar Pradesh has made it mandatory for the farmers who have taken loans, to take this weather based insurance cover.
Weather based crop insurance, which is an index based insurance product pioneered by ICICI Lombard in India in the year 2003-04, has been now successfully adopted in 14 states comprising of 64 districts covering as many as 26 variety of crops.
According to Mr. Alok Agarwal, Director-Corporate, ICICI Lombard General Insurance, “We consider it to be our privilege to have been chosen to provide weather based crop insurance in Uttar Pradesh. Agriculture is a significant contributor to the Indian economy accounting for 24% of the Indian GDP. The rural economy faces economic strain due to the variability in agriculture production and weather insurance protects the farmer against financial loss arising out of adverse weather conditions. ICICI Lombard believes in providing a fair and hassle-free service to its customers and the process has been made as objective as possible with third party government agencies monitoring the process.”
ICICI Lombard in 2009-10 insured over 287,000 farmers and 1,962,000 acres across 14 states. In 2009, ICICI Lombard received the 'Golden Peacock Eco-Innovation Award - 2009' for the technological innovation in the claim settlement process for weather insurance products.
About ICICI Lombard General Insurance Company Ltd.
ICICI Lombard GIC Ltd. is a 74:26 joint venture between ICICI Bank Limited, India’s second largest bank with consolidated total assets of over USD 100 billion at March 31, 2010 and Fairfax Financial Holdings Limited, a Canada based USD 30 billion diversified financial services company engaged in general insurance, reinsurance, insurance claims management and investment management.
ICICI Lombard GIC Ltd. is the largest private sector general insurance company in India with a Gross Written Premium (GWP) of Rs. 3,694.7 crore for the year ended March 31, 2010. The company issued over 44 lakh policies and settled over 62 lakh claims and has a claim disposal ratio of 96% (percentage of claims settled against claims reported) as on March 31, 2010. The company has 4,305 employees and 350 branches as on July 31, 2010.
The company has been assigned a domestic rating of ‘iAAA’ by ICRA (an associate of Moody’s Investors Service) for highest claim paying ability and a fundamentally strong position, for the fourth consecutive year. The company has been awarded CNBC Awaaz Consumer Award 2010 for being the ‘most preferred brand’ in the General Insurance category. ICICI Lombard Auto Insurance has been rated highest in customer satisfaction by J.D. Power Asia Pacific in India among 11 auto insurance providers. The company has been conferred the Golden Peacock- Eco Innovation Award of 2009 for weather insurance and the Customer and Brand Loyalty award in the ‘Insurance Sector - Non-Life’ at the 3rd Loyalty awards, 2010. It was awarded the ‘General Insurance Company of the Year’ at the 11th Asia Insurance Industry Awards. The company also won the NDTV Profit Business Leadership Award 2007 and was adjudged as the most Customer Responsive Company in the Insurance category at the Economic Times Avaya GlobalConnect Customer Responsiveness Award 2006. It has the Gold Shield for ‘Excellence in Financial Reporting’ by the ICAI (Institute of Chartered Accountants of India) for the year ended March 31, 2006.
ICICI Lombard allows instant policy issuance and renewal through its website www.icicilombard.com for all retail insurance products including Car Insurance, Health Insurance, Travel Insurance, Two Wheeler Insurance and Home Insurance. There are multiple payment options available including internet banking, credit card, debit card and cash card.