Iffco-Tokio General Insurance Company is launching their new insurance policy exclusively for farmers on October 1, 2001. The scheme called 'Sankath Haran Bima Yojana' (farmers personal accident) would be offered to farmers as an add-on product with the purchase of each 50 kg fertiliser bag either of Iffco, Kribhco or Indian Potash Ltd (IPL) through cooperative and farmer service centres.
Sources said that the scheme would provide farmers with benefits such as compensation in the event of injury causing permanent total disablement or death for a sum of Rs 4,000 per bag of 50 kg. "However, the maximum capital sum insured for a farmer will be Rs 1,00,000 irrespective of the number of bags he purchases," the sources added.
The sources said that the policy would be effective for a period of 12 months from the date of purchase. The policy would also be an excellent marketing tool for the fertiliser companies, they added.
The general insurance company is a joint venture between fertiliser co-operatives such as Indian Farmers Fertilisers Cooperatives (Iffco) and Krishak Bharti Cooperative (Kribhco) and Indian Potash Ltd (IPL) and Japanese non life insurer Tokio Marine and Fire Insurance Company Ltd, which is amongst the largest general insurance companies.
Iffco is the largest shareholder in the general insurance venture with about 45 per cent stake and Tokio Marine's holding is capped at the maximum permissible 26 per cent level. The remaining shares are held by Kribhco and other fertiliser cooperatives.
