Agriculture

Insurance in
India
Head Office, New Delhi

Classification: Restricted
 Agriculture Insurance Company of India
Limited
• Created at the behest of the
9%
Government and took over UIIC
crop insurance operation 9%
w.e.f. 1st April 2003 from GIC OIC
35%
Re GIC Re
9%
• Authorized Share Capital: NIC
INR 1500 crore Shareholders
• Paid-up Share Capital: INR 9%
NIA
200 crore
• Net-worth as on 31st March
2021: INR 5372 crore 30%
NABARD
• Solvency as on 31st March
2022: 2.45 GIC Re: General Insurance Corporation of India
NABARD: National Bank for Agriculture and Rural Development
NIA: New India Assurance Company Limited
NIC: National Insurance Company Limited
OIC: Oriental Insurance Company Limited
Classification: Restricted
बीमित फसल खुशहाल किसान www.aicofindia.com @aicofindia UIIC: United India Insurance
/aicofindialtd Company Limited @aicofindia
/aicofindialtd
 Indian Agriculture

52% 45% 16% 70%

of Area under Households
Cultivation of workforce of GDP directly/indirectly
involved

14% 24% 10% 25%

Households
of Area under of workforce of GDP
Cultivation directly/indirectly
involved

Classification: Restricted
बीमित फसल खुशहाल किसान www.aicofindia.com @aicofindia /aicofindialtd /aicofindialtd @aicofindia
 Why Agriculture Insurance?

Uncertainty in agricultural production

Agriculture production dependent upon
good monsoon
60% area is rainfed / unirrigated.
Some areas are perennially prone to floods
and some are to drought
Financial risks – indebtedness due to crop
losses
Crop Insurance is an efficient risk
management tool

Classification: Restricted
बीमित फसल खुशहाल किसान www.aicofindia.com @aicofindia /aicofindialtd /aicofindialtd @aicofindia
 AIC and Crop Insurance
Roadmap National Weather Based Pradhan Mantri
Agricultural Crop Insurance Fasal Bima Yojana
Insurance Scheme (WBCIS) (PMFBY)
Scheme (NAIS)

1999 2002 2007 2010 2016 2020

AIC Founded &

Promoted by

GIC
Revamped
NABARD Modified National Pradhan Mantri
New India Assurance
Agricultural
National Insurance Fasal Bima Yojana
Oriental Insurance Insurance Scheme (RPMFBY)
United India Insurance (MNAIS)

Classification: Restricted
बीमित फसल खुशहाल किसान www.aicofindia.com @aicofindia /aicofindialtd /aicofindialtd @aicofindia
 PMFBY Snapshot Area based
for wide
spread
losses
Loanee Individual
Revamped PMFBY Farmers losses –
penetration localized
1. Technology Intensive
30% calamities
2. 90% Central subsidy in NE
3. Voluntary for Loanee farmers
4. Opt out provision Farmers Expected
share 2%, premium
5. Multiyear Tenders – 3 Years 1.5% or ~32000
5% Cr.
50:50
State and
Centre Shared
Subsidy
Classification: Restricted
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 AIC’s Regional Spread
270
Channel
Districts ~4.5
Partner
APP Crore
policies

SEWA;
SARUS
AICIL 48%
Market
Seamless IT
integration
Snapshot Share

15000 Solvency
Cr.
2.45
GWP 18
Regional
Offices

Classification: Restricted
बीमित फसल खुशहाल किसान www.aicofindia.com @aicofindia /aicofindialtd /aicofindialtd @aicofindia
 PMFBY Scheme Administration

Financial
Government of State Insurance
Institutions and
India Government Companies
Intermediaries

Issues Scheme Sends notification

Notification for to Bank Receives
Formulates the the season (FI)/Intermediarie proposals and
scheme s and other stake premium from
holders in the farmers
district
Allocate district to
Insurance
companies

Issues Coordinates with

Insurance
Administrative Select area and GoI, SG and
coverage starts
Approval for FY crops to be Banks
insured

Classification: Restricted
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 Insurance Coverage Process – through Banking system

Approaches Bank for KCC Credit limit for Crop Sanctioned

Premium debited to his account

if not opted out Predefined sum insured/ha

Entry of insurance details in MoA crop Declaration with premium sent to

insurance portal by Bank Insurer

Classification: Restricted
9
बीमित फसल खुशहाल किसान www.aicofindia.com @aicofindia /aicofindialtd /aicofindialtd @aicofindia
 Insurance Coverage Process – other channels

Bank
Branch

Insurance
PMFBY
Intermedi
Portal
aries
Farmer

Common
Service
Centre Insurance
(CSCs) Company

Classification: Restricted
10
बीमित फसल खुशहाल किसान www.aicofindia.com @aicofindia /aicofindialtd /aicofindialtd @aicofindia
 Recent Significant Changes: Revamped PMFBY

 PMFBY made optional for all Farmers – Loanee farmer can OPT-OUT if he doesn’t
want insurance

 NE States: Subsidy sharing in 90:10 proportion between GoI & States

 Allocation of districts for a period of 3 years

 The proportion of non-loanee has gone up to 40% from initial less than 10%

 AIC is in the process of diversifying in Agriculture-allied lines of Business

 Role of Insurance Intermediaries has increased manifolds in tapping rural insurance

market and helping in rural financial inclusion

11
Classification: Restricted
बीमित फसल खुशहाल किसान www.aicofindia.com @aicofindia /aicofindialtd /aicofindialtd @aicofindia
 Synergies

Customized
Increasing Huge untapped products to be
Market for designed to align Partner
Rural
allied lines and with various
Insurance Parametric partner’s with AIC
Protection Products products/
schemes

Classification: Restricted
 Our Products Government Schemes
1. Pradhan Mantri Fasal Bima Yojana (PMFBY) 2. Bangla Shasya Bima 3. Restructured Weather Based
and Variations. Scheme (BSBS) Crop Insurance Scheme
(RWBCIS)

Surplus Sharing Model (80:110) State Co-Insurance Model (80:20)

Emerging Market : In-house Products-Crop

Sampoorna Fasal Kawach - Commercial Product Consequential Fasal Bhavantar

Sampoorna Ritu Kawach - Retail Product Kawach
Crop Loss
Sampoorna Laghu Kawach - MI Product

www.aicofindia.com
Classification: Restricted
बीमित फसल खुशहाल किसान www.aicofindia.com @aicofindia /aicofindialtd /aicofindialtd @aicofindia
 Inhouse Products – Agriculture Allied
Lines Pipeline
Launched

RUBBER PLANTATION AQUACULTURE

SARAL KRISHI BIMA
SAMPOORNA PASHUDHAN INSURANCE INSURANCE
Parametric insurance solution covering
economic loss for all activities under KAWACH - Product being revised in
discussion with RO - Separate indemnity-
Agriculture and Allied lines Sector, except - Indemnity Solution
- Generic Tree Plantation based Product for
cultivation of crops. against Diseases, Accident,
Insurance Proposed – Aquaculture under
Permanent Total Disability
“Sampoorna Vriksha consideration
• Weather parameter Indices
• Satellite based Indices & - Technical Note under Kawach”
• Notified Calamities: Drought, Cyclone, Flood Revision - Technical Note under
and Earthquake Development

Classification: Restricted
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 Notable Developments
Technology Based
Solutions

Parametric Products
Ground Sensing Enrolment
Smallest Turn Around
Time

Online Policy Issuance Mobile App Based

Underwriting

SMS Validation

www.aicofindia.com Agriculture Insurance Company Of India Limited

Classification: Restricted
बीमित फसल खुशहाल किसान www.aicofindia.com @aicofindia /aicofindialtd /aicofindialtd @aicofindia
 Thank You

Classification: Restricted
बीमित फसल खुशहाल किसान www.aicofindia.com @aicofindia /aicofindialtd /aicofindialtd @aicofindia