HDFC ERGO participated in a week long “Crop Insurance Week” (for both Kharif and Rabi season respectively) celebration on the occasion of 75th year of Indian Independence, celebrated as "Azadi ka Amrit Mahotsav- India@75" under
the aegis of Governemnt of India, aimed to commemorate the progress made by our Indian farmers over the years by various initiatives of the Ministry of Agriculture & Farmer's Welfare and the success of PMFBY in providing security
to our farmers. As a part of the celebration, we targeted 10 aspirational districts notified under the PMFBY/RWBCIS, having insignificant or low participation of the farmers in the PMFBY scheme. To create comprehensive awareness in
these aspirational districts, about the PMFBY/RWBCIS scheme, extensive marketing activities were planned focusing on educating the farmers about the benefits of the scheme under HDFC ERGO’s initiative “Kisan Pathshala”
. Our team members actively distributed cogent pamphlets and brochures, conducted awareness workshops and trainings were done using an one of it's kind "Digital Bus" equipped with desktops.. HDFC ERGO effectively connected with our
farmers by distribution of plant saplings and thereby also making sustainable efforts towards the environment. Social Media campaigns were used extensively throughout the week long celebration to reach out to the masses through innovative
digital creative contents, audio visuals, informative posts and dedicated hash tags. Further, to commemorate the incessant efforts of our farmers, HDFC ERGO was happy to unveil during the Crop Insurance week celebration, “PIHU”
an industry first WhatsApp Chat BoT equipped with Artificial Intelligence tools offering instant messaging services in regional languages to obtain information regarding enrollment in PMFBY Scheme, farmers application status, claim
intimation, claims status, etc.
I. The scheme provides Insurance coverage to all Farmers for their crops as notified by the State Governments
All farmers including sharecroppers and tenant farmers growing the notified crops in the notified areas are eligible for coverage.
All farmers availing Seasonal Agricultural Operations (SAO) loans from Financial Institutions (i.e. loanee farmers) for the notified crop(s) would be covered compulsorily.
It is mandatory for all loanee cultivators to insist on insurance coverage as per provisions of the Scheme.
b. Voluntary Component
The Scheme would be optional for the non-loanee farmers and cultivators desirous of availing insurance under PMFBY for any notified crop in any notified insurance unit may approach nearest bank branch/ PACS/ authorized channel
partner/ insurance intermediary of insurance company within cut-off date, fill-up proposal form completely in prescribed format, submit form and deposit requisite premium to bank branch/ Insurance Intermediary / CSC Centers along with
necessary documentary evidenceregarding his insurable interest in cultivating land/ crop (e.g.ownership/ tenancy/ cultivation rights) proposed for insurance.
II. Crops Covered
All crops are covered under the scheme such as Food& Oilseeds crops and Annual Commercial/Horticultural Crops for which past yield data is available.
In addition for perennial crops, pilots for coverage can be taken for those perennial horticultural crops for which standard methodology for yield estimation is available.
III. Coverage of Risks and Exclusions under the scheme
The Scheme operates on the principle of “Area Approach” in the selected Defined Areas which are called Insurance Unit (IU) , basis Crops and Defined Areas in accordance with decision taken in the State level coordination
committees on crop insurance of the respective State/UT Government . These units are notified as insurance unit applicable to Village/Village Panchayat or any other equivalent unit for major crops. For other all other crops it may
be a unit of size above the level of Village / village Panchayat.
Following stages of the crop and risks leading to crop loss are covered under the scheme.
a. Prevented Sowing/ Planting Risk: In case of majority of insured crops of a notified area are prevented from sowing/planting due to adverse weather conditions such as deficit rainfall or adverse seasonal conditions, the insured
crops that will be eligible for indemnity claims upto maximum of 25% of the sum-insured.
b. Standing Crop (Sowing to Harvesting): Comprehensive risk insurance is provided to cover yield losses due to non- preventable risks, viz. Drought, Dry spells, Flood, Inundation, Pests and Diseases, Landslides, Natural
Fire and Lightening, Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane and Tornado.
c. Post-Harvest Losses: coverage is available only up to a maximumperiod of two weeks from harvesting for those crops which are allowed to dry in cut and spread condition in the field after harvesting against specific
perils of hailstorm, cyclone and cyclonic rains and unseasonal rains.For the claims arising out of crop damage due to post-harvest losses and localized risks, arising out of cyclone or cyclonic rains / unseasonal rains throughout the
country, resulting in damage to harvested crop lying in the field in ‘cut and spread’ condition for sole purpose of drying only , upto a maximum period of two weeks (14days) from harvesting is also covered and the assessment
of damage will be made on individual farm basis.
d. Localized Calamities: LLoss/ damage resulting from occurrence ofidentified localized risks of hailstorm, landslide, Inundation, cloud burst and natural fire due to lightening affecting isolated farms in the notified
area.
Note: Losses arising out of war and nuclear risks, malicious damage and other preventable risks shall be excluded.
IV. Indemnity Level applicable for different crops
Coverage is provided upto different indemnity levels of 70%, 80% and 90% corresponding to high, moderate and low risk level, respectively, of the areas basis the type of crops and is notified for crops and areas as per
notified unit applicable.
V. Premium
The Maximum Premium payable by the farmers will be 2% for all Kharif Food & Oilseeds crops, 1.5% for Rabi Food & Oilseeds crops and 5% for Annual Commercial/Horticultural Crops or actuarial premium rate whichever is less.
The difference between premium and the rate of Insurance charges payable by farmers shall be shared equally by the Centre and State.
VI. Basis of Claims Settlements
The claims payout would be made, basis the Area Approach, subject to the following:
IMPORTANT NOTE:
The Scheme operates on the principle of “Area Approach” in the selected Defined Areas which are called Insurance Unit (IU), basis Crops and Defined Areas in accordance with decision taken in the State level coordination committees on crop insurance of the respective State/UT Government . These units are notified as insurance unit applicable to Village/Village Panchayat or any other equivalent unit for major crops. For other all other crops it may be a unit of size above the level of Village/ Village Panchayat.
The main claims payout would be made, basis the Area Approach, subject to the following: