The Hindu : Business : New insurance scheme for coffee growers launched

Online edition of India's National Newspaper
Wednesday, Mar 23, 2005

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Business

New insurance scheme for coffee growers launched

NEW DELHI, MARCH 22. A unique rainfall and yield based insurance scheme for coffee growers operated by the Agriculture Insurance Company of India (AIC) was unveiled here today.

Launching the insurance cover, Oscar Fernandes, Minister of State (Independent Charge) for Statistics and Programme Implementation, said, ``This programme will reach the farmers in nook and corner and such a crop insurance scheme is unique.''

The insurance cover will be extended to other important crops soon and save the farmers from committing suicides because of unbearable losses in farming suffered by them owing to certain features, Mr. Fernandes said.

The insurance cover for coffee is initially available in Hassan, Chikmaglore and Kodagu districts in Karnataka and other coffee growing areas will be added soon to the programme.

The maximum sum insured per hectare for robusta and arabica varieties will be Rs. 25,000 and Rs. 35,000 respectively. The premium would depend on factors such as coffee variety, location, historical rainfall data, past yield data, sum insured, trigger levels chosen and the acreage under cultivation.

The rates start from as low as 2.5 per cent of the sum insured to a maximum of 8 per cent depending on the scope of the cover.

The scheme covers 75 per cent under rainfall and 25 per cent under yield.

Claims are automated and are settled on the basis of the Actual Rainfall Index and Actual Yield. Claims are paid at a uniform rate to all the insured growers in the area.

Earlier, Suparas Bhandari, Chairman-cum-Managing Director of AIC, said, ``In terms of the number of farmers covered, it is the largest insurance programme in the world.'' — PTI, UNI

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