Public listed Insurance Company, Agriculture Insurance Company of India Limited has announced the launch of its ‘Parametric Insurance’ scheme to protect crops against weather vagaries.
In a statement issued, the Agriculture Insurance Company of India said, “It aims to cover all Indian corporates and affinity groups and/or individuals owning establishments or businesses, income of which can be affected by variation in crop yields due to adverse weather conditions.”
The insurance program entails tracking of various weather and crop parameters through automated weather stations and based on these parameters a crop-specific index is derived and the most suitable insurance product is created for a specific crop.
AIC has worked to gather the data with multiple credible weather data agencies like IMD, Skymet Weather, and private/government vendor/agency that have automatic weather stations installed in various locations PAN India.
“The adverse weather conditions indicated by direct proxy weather indicators are the trigger events for this insurance cover. The pay-outs are made when the weather index deviation exceeds a predetermined threshold which is detrimental to crop growth. For example, rainfall parameters are deficit rainfall cover, excess rainfall cover, unseasonal rainfall cover, cover for inadequate distribution of rainfall, cover for wet spells, and more,” the statement added.