Agriculture Insurance Company of India Limited

CIN: U74999DL2002PLC118123

SARAL KRISHI BIMA

UIN: IRDAN126RP0001V012202223
(A RETAIL INSURANCE PRODUCT)
 Benefits provided under the product

A unique and comprehensive parametric insurance product covering and compensating the
insured against the economic losses suffered on account of occurrence of perils as indicated by
several direct proxy indicators like extreme weather conditions or notified calamities and indirect
proxy indicators like deviation in NDVI, LSWI, fAPAR etc., either in isolation or concurrently.
All activities in agricultural and allied sector namely Livestock, Aquaculture, Sericulture, Lac
Culture, Apiculture, Vermiculture, Silviculture, Forestry & Logging, Structures, Machinery and
Labour and any other activity falling under the purview of agriculture and allied sector are
covered under this product.

The weather parameters considered for The satellite-based parameters considered

this product are as follows: for this product are as follows:

Rainfall Normalized Difference Vegetation

Index (NDVI)
Temperature
Land Surface Water Index (LSWI)
Sunshine hours
Soil Adjusted Vegetation Index (SAVI)
Relative humidity
Soil Moisture Content Index
Wind speed
Microwave Backscatter
Pest-diseases congenial climate
Flood Index
The notified calamities considered for Drought Index
this product are as follows:
fAPAR
Drought
Any other satellite-based indices that
Cyclone may be relevant for a particular risk
Flood may also be considered on a
case-to-case basis.
Earthquake

The product will provide cover based on single or a combination of these parameters to ensure
adequate risk coverage.

Eligibility Unique Selling Proposition of this product

This insurance product is applicable to all No need for individual loss surveys. No need
corporates and affinity groups operating in for policyholder to intimate AIC for the
agriculture and allied sectors, co-operative losses as claims are automated and hassle
societies, self-help groups, joint liability groups free.
and individual agriculturalists, Central
Government and/or State Government Customized Cost No loss Automatic
organisations, Microfinance institutions, product Effective survey claim settlement

Banks, Regional Rural banks, Non-Government

Organizations etc.
 Product can be purchased from Cover Period

Brokers Policy term may be annual/seasonal (less

Agents than or more than 1 year)/multi-year

Banking Partners Documents required

Common Service Centre
Completely and correctly filled up
Direct purchase from AIC website
Offline/Online Proposal Form
Other entities licensed by IRDAI
Aadhaar details
Document proving insurable interest
Any other document required as per
IRDAI guidelines

Payment Basis

The claim payment will be made through online mode. Claims will be directly credited to the
Bank account of policyholder through online mode

Salient Features and Benefits

This product is based on weather and satellite parameters and has extensive use of
technology, thus offering various parametric coverage as per the choice of the
policyholder.
The policyholder needs to choose the weather and satellite parameters and the natural
calamity cover, the source from where the weather and satellite data may be collected and
the cover at the time of purchasing the product.
 Sum Insured

Sum Insured will be based on the economic values of the risk covered which will be arrived at
using factors like input cost, production cost, probable maximum loss.

Premium Cancellation by the policyholder

The premium amount will be mainly based Policyholder can cancel the policy within 15
on the following: days of receipt of policy document as per
Risk profile of the covered risk IRDAI guidelines. Full premium will be
refunded after deduction of stamp duty and
Nature of risks covered expenses incurred. If policyholder cancels
Geographical location the policy after 15 days, the premium will be
Deductibles refunded based on pro rata basis with
adjustment of expenses. No refund of
The premium amount may vary depending premium in case of cancellation of policy
on the combination of perils covered under after expiry of half of the policy period. No
the policy. refund of premium in case of cancellation of
policy after claim arises.

Claim Payment

The policyholders are not required to inform AIC about the occurrence of loss as the process
of payment of claims is automated, based on the weather/satellite indices/calamity
notification data and the covers purchased.
The claim payment will be made through online mode within 30 days from the end of the risk
period or of receiving the required data whichever is later.

Exclusions

Losses arising out of war, invasion, act of foreign enemies, hostilities or war-like
operations, rebellion, revolution, insurrection, military or usurped power or civil
commotion or loot or pillage in connection herewith.
Consequential loss of any kind or description.
Direct or consequential loss due to nuclear weapons material, ionizing radiation or
contamination by radioactivity from any nuclear fuel or from any nuclear waste from the
combustion of nuclear fuel.
Losses arising due to any other reasons which are not specifically included in the policy
Any weather parameter not specifically covered under the policy.
Any natural calamity covered in the policy which is not notified by the concerned authority
 Grievance Redressal

In case the policyholder has any query or grievance, he/ she may contact the regional office of
the state to which he/ she belongs or may call on 1800-116-515. The policyholder may also
send an email at [email protected]. If he/ she is unsatisfied with the response, he/ she
may contact the nodal grievance officer at head office.
If the policyholder or his/her legal heirs or nominee is/ are unsatisfied with the action taken by
AIC, he or she may approach insurance ombudsman with his/ her grievance. For any further
contact details, policyholder may log on to the official website.

Illustrative Sample termsheet and claim payout structure

Deficit rainfall cover indemnifies the policyholder against the likelihood of financial loss on
account of shortfall in rainfall. Cover against adverse deviation in:
Aggregate of rainfall
A sample term sheet is provided below for reference:
Phase-I Phase-II
Period/Phase 16-Jul to 31-Jul 01-Aug to 15-Aug
Aggregate Rainfall
STRIKE I (<) 35 mm 50 mm
STRIKE II (<) 10 mm 20 mm
EXIT 0 mm 0 mm
RATE I (Rs/mm) 20.00 20.00
RATE II (Rs/mm) 100.00 57.50
Maximum Pay-out 1500 1750

Scenario Claim Pay-out

During Phase-I i.e., during A pay-out will trigger because 8 mm is less than strike-I as well as strike-II
the period 16-Jul to 31- of phase-I i.e., 35 mm and 10 mm respec�vely. Therefore, the pay-out for
Jul rainfall is 08 mm this phase will be calculated as (10 - 8) X 100 + (35 - 10) X 20 which is equal
to Rs 700.00.
During Phase-II i.e., A pay-out will trigger because 30 mm is less than strike-I of the phase-II
during the period 01-Aug i.e. 50 mm. The pay-out for this phase is calculated as (50 - 30) X 20 which
to 15- Aug is 30 mm is equal to Rs 400.00.
Total Pay-out Rs.700 + Rs.400
 Sample Illustration – Notified Natural Calamity

Major natural calamities affecting agriculture and allied sector namely Drought, Cyclone,
Flood, Earthquake, are generally notified by the concerned District Disaster Management
Authority (DDMA)/ State Disaster Management Authority (SDMA), or National Disaster
Management Authority (NDMA).
This Cover indemnifies the insured against the likelihood of economic loss on account of
losses happened to the named natural calamities by only verifying if the same has been
notified by the authority to notify the said calamities.
A sample term sheet is provided below for reference:

Phase-I Phase-II
Period 16-Aug to 30-Sep 1-Oct to 31-Oct
Category 2 or higher Cyclone No�fied by DDMA/SDMA/NDMA
Strike-I (>=) 2 hours 2 hours
Exit 8 hours 8 hours
PAY-OUT(Rs./hour) 5000 10000
Maximum Pay-out (in Rs.) 40000 80000
Total Maximum pay-out: Rs. 80000.00

Calculation

Check the duration of cyclone as notified by the DDMA/SDMA/NDMA

Scenario Claim Pay-out
Assume that in phase I, a In Phase-I, the Pay-out will trigger as hours the cyclone hit (i.e., 4) is more
category 3 cyclone was no�fied than strike but less than exit. Therefore, Pay-out of this will be 4 X 5000 =
for 4 hours. Rs.20000.00
Similarly, in phase-II, a category 2 In Phase-II, the Pay-out will trigger as hours the cyclone hit (i.e., 2) is more
cyclone was no�fied for 2 hours. than strike but less than exit. Therefore, Pay-out of this will be 2 X 10000
= Rs.20000.00
Total Pay-out Rs. 20000 + Rs. 20000 = Rs. 40000

Notices

Any notice, direction or instruction given under this product by AIC shall be in writing and
delivered by hand, post, facsimile or email to:
(i) In case of the policyholder, at the address specified in the Schedule.
(ii) In case of Agriculture Insurance Company of India Limited, at the contact details provided
 Glossary

Deductible: Part of insurance claim to be paid by the policyholder

fAPAR - Fraction of Absorbed Photosynthetically Active Radiation: fAPAR is the fraction of
incoming solar radiation in the spectrum of 400–700 nm that is absorbed by vegetation
canopy, and it is a ratio that ranges from 0 to 1 with no units.
LSWI - Land Surface Water Index: LSWI indicates the total amount of liquid water vegetation
and its soil background. The LSWI uses Short Wave Infra-Red (SWIR) and the NIR regions of
the electromagnetic spectrum.
Microwave Backscatter: When a radar system transmits a pulse of energy to the ground, it
scatters off the ground in all directions. A portion of the scattered energy is directed back
toward the radar receiver, which is referred to as "backscatter".
NDVI - Normalized Difference Vegetation Index: It is calculated from multispectral
information as normalized ratio between the red and near infrared bands.
Pest Disease Congenial Climate: The climatic variability, which may arise from a combination
of deviation in weather parameters, can lead to increase in pest and disease attack. Therefore,
Disease Congenial Days (DCD) can be covered as combination of temperature, relative
humidity and rainfall taken together when they lie outside their respective defined trigger
ranges.
Relative humidity is the amount of water vapor present in the atmosphere expressed as the
percentage of maximum that could be present at the same temperature.
SAVI – Soil Adjusted Vegetation Index: The Soil Adjusted Vegetation Index (SAVI) is similar to
NDVI but is used in areas where vegetative cover is low (< 40%). When a significant amount of
the soil surface is exposed, the soil reflectance can influence the NDVI values.
Soil moisture index (SMI) of remote sensing technique can be used to assess the moisture
content in soil and soil moisture mapping which is an important part for analysis of vegetation
and drought.
Sunshine Hour: The number of hours of bright sun shines per day as measured as per weather
data.
Wind speed shall mean the average wind speed for a day (km / hour or miles/ hour) recorded
as per weather data.

Disclaimer: This brochure is an extract from the terms and conditions of this insurance policy.
Should there be any discrepancies, misprint and/or misinterpretation thereof, the terms and
conditions of the insurance policy will prevail.
 Company Profile Our Presence

Agriculture Insurance Company of India Limited AIC has its head office in New Delhi. The
(AIC) was promoted by General Insurance business of the company is spread over 500
Corporation of India (GIC) and National Bank for districts and provides financial support to
Agriculture and Rural Development (NABARD) almost 20 million farmers. The company has 18
and four Public Sector General Insurance regional offices across the country in capital
Companies and incorporated under Companies cities of Andhra Pradesh, Assam, Bihar,
Act on 20th December 2002. Chandigarh, Chandigarh (UT), Gujarat,
AIC is currently implementing Pradhan Mantri Jharkhand, Karnataka, Kerala, Madhya Pradesh,
Fasal Bima Yojna in various states and has Maharashtra, Orissa, Rajasthan, Tamil Nadu,
many in-house products offering coverage to Telangana, Uttar Pradesh, Uttarakhand and
various agriculture and allied activities. West Bengal. The officers posted at these
offices are constantly in direct contact with the
AIC’s mission is to provide financial security to
farmers and serve them directly.
persons engaged in Agriculture and allied
activities through Insurance Products and other The insurer can be reached out at any time via
Support Services. the following:
Email: [email protected]
AIC is committed to use available technology for
scientific, objective and expeditious Helpline: 1800-116-515 (toll free) 011-24604444
assessment and settlement of legitimate Website: www.aicofindia.com
claims. Address: Plate B & C, Office Block-1, 5th Floor,
East Kidwai Nagar, New Delhi – 110023

www.aicofindia.com

Agriculture Insurance Company of India Limited

CIN: U74999DL2002PLC118123
IRDAI Registration No. 126
Insurance is subject matter of solicitation

Helpline No: 1800-116-515 (toll free) Registered office:

Contact No: 011-24604444 Plate B & C, 5th Floor, Block 1,
E-Mail: [email protected] East Kidwai Nagar, New Delhi - 110023