Company Overview

• Inception: AIC was incorporated in December 2002 and began operations in April 2003.
• Ownership: It is a public sector entity, jointly promoted by:
  • General Insurance Corporation of India (GIC Re)
  • NABARD (National Bank for Agriculture and Rural Development)
  • Four public sector general insurance companies: New India Assurance, United India Insurance, Oriental Insurance, and National Insurance Company.

Primary Objectives

1. Crop Insurance: Protecting farmers against financial losses caused by natural calamities, pests, and diseases.
2. Rural Empowerment: Supporting rural development through innovative insurance products tailored for farmers and the agricultural sector.
3. Risk Management: Providing risk mitigation solutions to ensure income stability for farmers.

Key Products and Services

1. Crop Insurance

AIC provides insurance solutions under various government-backed and private schemes:

• Pradhan Mantri Fasal Bima Yojana (PMFBY):
  • Covers all food crops, oilseeds, and commercial or horticultural crops.
  • Protection against natural calamities like floods, droughts, hailstorms, and pests.
• Restructured Weather-Based Crop Insurance Scheme (RWBCIS):
  • Protects against adverse weather conditions affecting crop yields.
• Crop Cutting Experiments (CCE):
  • Assessment-based coverage under specific schemes.

2. Livestock Insurance

Coverage for cattle, buffaloes, sheep, goats, and other livestock against diseases, accidents, and natural calamities.

3. Aquaculture and Fisheries Insurance

Insurance products designed for fish and shrimp farmers.

4. Innovative Rural Insurance Products

• Weather insurance for specific crops and regions.
• Comprehensive coverage for farmers, including tools and equipment.

Market Reach and Distribution

• AIC operates through a network of regional offices, corporate agents, intermediaries, and tie-ups with banks.
• The company has established a robust presence in rural and semi-urban areas to serve India’s agrarian population effectively.

Achievements

• Largest Crop Insurer in India: AIC has emerged as a leader in crop insurance, covering millions of farmers annually.
• Global Presence: Recognized as a pioneer in agricultural insurance, AIC has shared its expertise with international organizations and governments.
• Awards and Recognitions: The company has received accolades for innovation and excellence in agricultural insurance.

Challenges

1. Climate Change: Increasing frequency of extreme weather events poses challenges in underwriting and claim settlements.
2. Awareness and Penetration: Ensuring farmers understand the benefits of insurance remains an ongoing task.
3. Operational Issues: Streamlining processes like claim assessments and payouts is critical to improving efficiency.

Future Goals

1. Digital Transformation: Leveraging technology for policy issuance, premium collection, and claim settlements to enhance farmer experience.
2. Expansion of Products: Developing innovative insurance solutions for emerging risks, such as precision farming and organic farming.
3. Global Collaboration: Strengthening partnerships with international agencies to share best practices and enhance agricultural insurance models.

Agriculture Insurance Company of India Limited is pivotal in safeguarding India’s agricultural sector. By reducing risks and promoting financial security, AIC ensures farmers can focus on productivity and innovation, contributing to the nation’s food security and rural development.