Agriculture Insurance Company of India to Launch Insurance Products for Livestock, Aquaculture, & Sericulture
AIC's foray into livestock, aquaculture, and sericulture insurance products marks a significant step forward in the company's commitment to supporting the agricultural sector and safeguarding the livelihoods of farmers and stakeholders.
Agriculture Insurance Company of India (AIC) has announced its plans to introduce insurance products for the livestock, aquaculture, and sericulture sectors, following the approval and licensing received from the Insurance Regulatory and Development Authority of India (IRDAI). With an already established market share of 50 percent in the crop insurance sector through the Pradhan Mantri Fasal Bimal Yojana (PMFBY) scheme, AIC aims to expand its offerings and cater to the diverse needs of the agricultural community.
Established in 2000, AIC boasts a capital base of Rs 200 crore, with contributions from major stakeholders such as GIC Re, Nabard, National Insurance, United India Insurance, New India Assurance, and Oriental Insurance. Despite its plans for expansion, Subramanian clarified that AIC does not foresee an immediate need to raise additional capital.
AIC's foray into livestock, aquaculture, and sericulture insurance products marks a significant step forward in the company's commitment to supporting the agricultural sector and safeguarding the livelihoods of farmers and stakeholders. With its expertise and established market presence, AIC aims to provide comprehensive coverage and contribute to the resilience and growth of these vital industries in India.
Also Read: Chhattisgarh Starts Disbursement of 1st instalment of Rs. 1,895 Crore for 2023-24 Input Subsidy for Farmers
During a recent ASSOCHAM event, CMD of AIC, Girija Subramanian, informed reporters that the company had obtained the necessary licenses from IRDAI in May of the previous year and is currently in the process of developing these insurance products. The forthcoming coverage will provide farmers and stakeholders in the livestock, aquaculture, and sericulture industries with financial protection against various risks and uncertainties.
Under the PMFBY scheme, AIC must qualify through the bidding process to secure business. However, the insurance provider has also obtained a license to offer retail crop insurance, which requires reaching out to farmers located in remote areas. Subramanian acknowledged that developing this aspect of the business would require some time and effort.
Also Read: Odisha Government Announces Free Crop Insurance for Farmers for 3 Years
In the PMFBY scheme, farmers are required to pay a portion of the premium, while the remaining amount is divided equally between the Central and State governments. For the Kharif season, farmers contribute 2.5 percent of the premium, while during the rabi season, they pay only 1.5 percent.
In addition to participating in the tendering process for PMFBY, AIC also bids for similar schemes initiated by various state governments that do not adhere to the PMFBY guidelines, thus expanding its reach and coverage across different regions.
Also Read: Haryana Farmers to Receive 4000 Cash Incentive to Grow Paddy Using DSR Technique
Farmers in MP Discover Substitute for Fertilizers, Dose Crops with Country Liquor
Wrestlers Threaten to Immerse Medals in Ganga, Drawing Parallels to Muhammad Ali’s Protest Against Racism
Tractor Industry Braces for El Nino Impact Amidst Election Buzz
Mahindra & Mahindra Sets Sights on Lightweight Tractors to Expand Market Share