ICICI Lombard General Insurance Company Ltd has been directed to provide insurance for weather-based crops. The crop insurance will cover the Rabi season (2010-11) in 5 districts of Karnataka. These 5 districts are Kopal, Bijapur, Chitradurga, Yadgir and Chikkballapur.
The crops covered under the Rabi season are mango, jowar, wheat, potato, bengal gram and grapes. The production of these crops is mainly dependent on the weather conditions hence; this insurance would provide cover against weather-related risks. The risks could be excessive rainfall or a shortage in the rainfall, fluctuations in humidity and variations in the temperature.
This is a rather unique scheme as the beneficiary will not have to raise any claims. Here, ICICI Lombard will voluntarily get the data from the Indian Meteorological Department (IMD) and National Collateral Management Services Ltd. (NCMSL) and will proactively intimate the beneficiary and settle the claim amount. The entire process will be very transparent.
Mr. Alok Agarwal, Director-Corporate, ICICI Lombard General Insurance states that “Agriculture being the predominant occupation in India, contributes close to 24% of the GDP. It is a privilege to provide insurance to these farmers against financial losses due to adverse weather conditions”.
In 2009-10, ICICI Lombard has insured over 2.87 lakh farmers across 14 states. This move is bound to bring a sigh of relief to farmers who are constantly worried about the changing climatic conditions.
