Agriculture Insurance Company of India

Agriculture Insurance Company of India
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Agriculture Insurance Company of India Limited
Type Public Limited
Industry Insurance
Founded 2003
Ambadeep Building, Connaught
Headquarters
Place, New Delhi
M Parshad (Chairman & Managing
Key people
Director)
Products Crop Insurance
Employees 300
Website www.aicofindia.org/
Agriculture Insurance Company of India Limited is a public sector undertaking

headquartered out of New Delhi, India. It currently offers area based and weather based crop
insurance programs in almost 500 districts of India. It covers almost 20 million farmers, making
it one of the biggest crop insurers in the world.
Agriculture Insurance Company Of India Ltd (AIC) is promoted by General Insurance

Corporation of India (GIC), NABARD and the 4 Public Sector General Insurance companies.
AIC has taken over the implementation of National Agricultural Insurance Scheme (NAIS)
which until Financial Year 2002 – 03 was implemented by GIC.
AIC is under the administrative control of Ministry of Finance, Government of India, and under
the operational supervision of Ministry of Agriculture. Insurance Regulatory and Development
Authority, Hyderabad, is the regulatory body governing AIC.
Contents
[hide]
 1 Offices
 2 Business Model
 3 Project AICNET
 4 External links
[edit] Offices
AIC has 17 Regional Offices spread across India. AIC sells various agriculture and allied
insurance products and schemes. A significant amount of business is derived out of National
Agriculture Insurance Scheme. Some other products are:
• Weather Based Crop Insurance Scheme (WBCIS)

• Bio – fuel Tree/ Plant Insurance Policy
• Wheat Insurance
• Mango Insurance
• Varsha Bima
• Coffee Insurance
• Rubber Insurance
[edit] Business Model

An overwhelming majority of AIC's business is derived from the compulsory nature of crop
insurance at the time of an agricultural loan, as directed by the Government of India.
Underwriting & Claims The following depicts the chain of intermediaries involved in
underwriting and claim settlement.
Farmer -> Primary Agricultural Credit Society (PACS) -> Bank Branch -> Nodal Bank -> AIC
A farmer is either categorized as 'Loanee' (has taken an agricultural loan from a participating
financial institution) or 'Non-Loanee' (has only bought insurance cover without a loan involved).
The farmer may interact with a local PACS in his area or with a Bank Branch directly.
A participating bank may be of three types - (1) Regional Rural Bank (2) Commercial Bank (3)
District Central Cooperative Bank (DCCB)
One or two bank branches in each district in India would be designated as a Nodal Bank. This
bank would interact directly with AIC.
A consolidated 'Declaration' which lists insurance parameters for an entire region is forwarded
by the PACS/Bank Branch to the next level until it finally reaches the Nodal Bank. The Nodal
Bank then remits the premium and information to AIC.
At the time of claims disbursement, the cycle reverses.
[edit] Project AICNET

In September 2007 AIC released a tender which solicited consultancy for a comprehensive
technology solution to automate operational aspects of its business. The tender document also
focused on using business analytics extensively. Once completed as described in the tender,
AICNET would facilitate interaction with more than 20 million farmers, and also provide some
detail into the habits of the rural Indian consumer.
[edit] External links

 Company website
 Project AICNET
 [1]
Agriculture Insurance Company of India

From Wikipedia, the free encyclopedia
Jump to: navigation, search
This article needs references that appear in reliable third-party publications. Primary
sources or sources affiliated with the subject are generally not sufficient for a Wikipedia article.
Please add more appropriate citations from reliable sources. (November 2010)
This article needs additional citations for verification.
Please help improve this article by adding reliable references. Unsourced material may be challenged and removed.
(November 2010)
This article is missing citations or needs footnotes. Please help add inline citations to guard
against copyright violations and factual inaccuracies. (March 2009)
Agriculture Insurance Company of India Limited
Type Public Limited
Industry Insurance
Founded 2003
Ambadeep Building, Connaught
Headquarters
Place, New Delhi
M Parshad (Chairman & Managing
Key people
Director)
Products Crop Insurance
Employees 300
Website www.aicofindia.org/
Agriculture Insurance Company of India Limited is a public sector undertaking

headquartered out of New Delhi, India. It currently offers area based and weather based crop
insurance programs in almost 500 districts of India. It covers almost 20 million farmers, making
it one of the biggest crop insurers in the world.
Agriculture Insurance Company Of India Ltd (AIC) is promoted by General Insurance
Corporation of India (GIC), NABARD and the 4 Public Sector General Insurance companies.
AIC has taken over the implementation of National Agricultural Insurance Scheme (NAIS)
which until Financial Year 2002 – 03 was implemented by GIC.
AIC is under the administrative control of Ministry of Finance, Government of India, and under
the operational supervision of Ministry of Agriculture. Insurance Regulatory and Development
Authority, Hyderabad, is the regulatory body governing AIC.
Contents
[hide]
 1 Offices
 2 Business Model
 3 Project AICNET
 4 External links
[edit] Offices
AIC has 17 Regional Offices spread across India. AIC sells various agriculture and allied
insurance products and schemes. A significant amount of business is derived out of National
Agriculture Insurance Scheme. Some other products are:
• Weather Based Crop Insurance Scheme (WBCIS)

• Bio – fuel Tree/ Plant Insurance Policy
• Wheat Insurance
• Mango Insurance
• Varsha Bima
• Coffee Insurance
• Rubber Insurance
[edit] Business Model

An overwhelming majority of AIC's business is derived from the compulsory nature of crop
insurance at the time of an agricultural loan, as directed by the Government of India.
Underwriting & Claims The following depicts the chain of intermediaries involved in
underwriting and claim settlement.
Farmer -> Primary Agricultural Credit Society (PACS) -> Bank Branch -> Nodal Bank -> AIC
A farmer is either categorized as 'Loanee' (has taken an agricultural loan from a participating
financial institution) or 'Non-Loanee' (has only bought insurance cover without a loan involved).
The farmer may interact with a local PACS in his area or with a Bank Branch directly.
A participating bank may be of three types - (1) Regional Rural Bank (2) Commercial Bank (3)
District Central Cooperative Bank (DCCB)
One or two bank branches in each district in India would be designated as a Nodal Bank. This
bank would interact directly with AIC.
A consolidated 'Declaration' which lists insurance parameters for an entire region is forwarded
by the PACS/Bank Branch to the next level until it finally reaches the Nodal Bank. The Nodal
Bank then remits the premium and information to AIC.
At the time of claims disbursement, the cycle reverses.
[edit] Project AICNET

In September 2007 AIC released a tender which solicited consultancy for a comprehensive
technology solution to automate operational aspects of its business. The tender document also
focused on using business analytics extensively. Once completed as described in the tender,
AICNET would facilitate interaction with more than 20 million farmers, and also provide some
detail into the habits of the rural Indian consumer.
[edit] External links

 Company website
 Project AICNET
 [1]
[edit] Agriculture
Farmers work outside a rice field in Andhra Pradesh. India is the second largest producer of rice in the
world after China,[75] and Andhra Pradesh is the second largest rice producing state in India with West
Bengal being the largest.[76]
Main articles: Agriculture in India, Forestry in India, Animal husbandry in India, and Fishing in India
See also: Natural resources in India
India ranks second worldwide in farm output. Agriculture and allied sectors like forestry, logging
and fishing accounted for 15.7% of the GDP in 2009–10, employed 52.1% of the total
workforce, and despite a steady decline of its share in the GDP, is still the largest economic
sector and a significant piece of the overall socio-economic development of India.[77] Yields per
unit area of all crops have grown since 1950, due to the special emphasis placed on agriculture in
the five-year plans and steady improvements in irrigation, technology, application of modern
agricultural practices and provision of agricultural credit and subsidies since the Green
Revolution in India. However, international comparisons reveal the average yield in India is
generally 30% to 50% of the highest average yield in the world.[78]
India receives an average annual rainfall of 1,208 millimetres (47.6 in) and a total annual
precipitation of 4000 billion cubic metres, with the total utilisable water resources, including
surface and groundwater, amounting to 1123 billion cubic metres.[79] 546,820 square kilometres
(211,130 sq mi) of the land area, or about 39% of the total cultivated area, is irrigated.[80] India's
inland water resources including rivers, canals, ponds and lakes and marine resources comprising
the east and west coasts of the Indian ocean and other gulfs and bays provide employment to
nearly six million people in the fisheries sector. In 2008, India had the world's third largest
fishing industry.[81]
India is the largest producer in the world of milk, jute and pulses, and also has the world's second
largest cattle population with 175 million animals in 2008.[75] It is the second largest producer of
rice, wheat, sugarcane, cotton and groundnuts, as well as the second largest fruit and vegetable
producer, accounting for 10.9% and 8.6% of the world fruit and vegetable production
respectively.[75] India is also the second largest producer and the largest consumer of silk in the
world, producing 77,000 million tons in 2005.[82
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Agriculture Insurance Company of India

From Wikipedia, the free encyclopedia

Agriculture Insurance Company of India Limited is a public sector undertaking

Agriculture Insurance Company Of India Ltd (AIC) is promoted by General Insurance

• Weather Based Crop Insurance Scheme (WBCIS)

[edit] Business Model

At the time of claims disbursement, the cycle reverses.

[edit] Project AICNET

[edit] External links

Agriculture Insurance Company of India

Agriculture Insurance Company of India Limited is a public sector undertaking

• Weather Based Crop Insurance Scheme (WBCIS)

[edit] Business Model

At the time of claims disbursement, the cycle reverses.

[edit] Project AICNET

[edit] External links

See also: Natural resources in India

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