WELCOME

1. WELCOME Agriculture Insurance Company of India Ltd. Regional Office – Dehradun, Uttarakhand Presentation on Crop Insurance State: Uttarakhand Trust that takes care of Today & Tomorrow

2. About AIC • Incorporated on 20th Dec., 2002 • Taken over business operations from erstwhile Implementing Agency i.e., GIC w.e.f. 1st April 2003 • Promoters: GIC (35%), NABARD (30%) and NIA, NIC, OIC & UIIC (8.75% each) • 2-Tier structure - Head Quarters at New Delhi and 17 Regional Offices Trust that takes care of Today & Tomorrow

3. Crop Insurance Programmes implemented by AIC in Uttarakhand • National Agricultural Insurance Scheme (NAIS) since Rabi 2002-03 • Weather Based Crop Insurance Scheme (WBCIS) since Kharif 2010 • Modified National Agricultural Insurance Scheme (MNAIS) since Rabi 2010-11 • UttarakhandSebBimaYojana (USBY) during 2008 & 2009. Trust that takes care of Today & Tomorrow

4. NAIS – salient features • Homogenous Area and Yield Guarantee based • Food crops / Oilseeds (FC/OS) & Annual Commercial / Horti. Crops • Compulsory for Loanee & Optional for Non-Loanee farmers • Sum Insured - Loan amount to 150% of value of Average Yield • Premium – FC/OS – Kharif - 2.5% to 3.5% ; Rabi - 1.5 to 2% and Actuarial for Annual Commercial / Horticultural Crops • Premium Subsidy - 10% to Small / Marginal farmers • Claims in excess of 100% for FC/OS and 150% for Commercial / Horti. Crops are shared by Central and State Govts. On 50:50 basis. Trust that takes care of Today & Tomorrow

5. Crops notified and insurance units under NAIS in Uttarakhand • Rabi – Wheat: Hills - Tehsils Plain -Nyay Panchayats • Kharif - Paddy: Hills - Tehsils Plain-Nyay Panchayats Ragi: Hills-Tehsils Potato & Ginger: Districts Level up to Kharif 2010. Later on covering under WBCIS since 2011 Trust that takes care of Today & Tomorrow

6. Year wise Coverage in Uttarakhand under NAIS(Amount in Rs. Lakhs) Trust that takes care of Today & Tomorrow

7. Kharif & Rabi Season Coverage in Uttarakhand under NAIS(Amount in Rs. Lakhs) 7 Trust that takes care of Today & Tomorrow

8. WBCIS: Key Features • Based on Weather parameters like Frost, Heat, Humidity, Un-seasonal Rainfall & Combinations • Compulsory for Loanee & Voluntary for Non-loanee • Sum insured is pre-defined and broadly equivalent to cost of production • Actuarial rates are capped at 8% for Food crops & Oilseeds & 12% for Other crops (Commercial / Hort. Crops) • Premium rates payable by farmers is the same as NAIS for FC/OS and up to a maximum of 6% for Commercial / Horticultural crops • Claims is the responsibility of Insurance Company • NAIS would not be available for Loanee farmers in the Pilot areas / crops, while Non-loanee have choice of NAIS & WBCIS Trust that takes care of Today & Tomorrow

9. Weather Indexed Parameters Rainfall: Deficit rainfall, Excess rainfall, Unseasonal rainfall, Rainy Days. Temperature: Hourly Chilling units , Temperature fluctuation Wind Speed: High Wind Speed Humidity: Relative Humidity 9 Trust that takes care of Today & Tomorrow

10. Automated – no need for claim lodgment Based on the weather data received, claims are calculated on degree of adverse deviation of weather parameters as defined in the term sheet WBCIS Claims = Quantum of deviation from trigger value * payout per unit of deviation, subject to ceiling of maximum payout WBCIS claims are disbursed within 45 days of end of contract period NODAL Banks / Insured Non-Loanee farmers receive the claim & details thereof through RTGS/NEFT etc Banks/PACS credit the claim to the beneficiary farmers’ a/c, display their name on the notice board Claim Processing - WBCIS 10 Trust that takes care of Today & Tomorrow

11. WBCIS - Advantages • Trigger events can be independently verified • Moral Hazard, Adverse Selection problems can be controlled • Relatively inexpensive to operate • Wide variety of crops can be covered • Expeditious claim settlement (within 45 days of expiry of risk) • Can also be implemented for crops with no past yield data • No adverse impact of previous low yields / lower indemnity limit Trust that takes care of Today & Tomorrow

12. Coverage under pilot WBCIS Since Kharif 2010- Uttarakhand Rs. In Lakhs 12 Trust that takes care of Today & Tomorrow

13. APPLE INSURANCE POLICYIES / SCHEMES UTTARAKHAND SEB BIMA YOJANA (USBY) – 2007 - This was a unique hybrid product developed by and implemented by AIC on behalf of Govt. of Uttarakhand. Hail and Weather parameters were covered. Weather parameters covered were – chilling requirement, temperature fluctuation, and Rainfall. Premium was 2.5% of SI, and claims in excess of premium was paid by the Govt., --- as per NAIS. Claims due to Hail was determined by physical verification of insured apple orchard. 13 Trust that takes care of Today & Tomorrow

14. APPLE INSURANCE POLICYIES / SCHEMES UTTARAKHAND SEB BIMA YOJANA (USBY) – 2009 - This was a non-subsidized policy developed by AIC. - Farmers had to pay premium @16% of SI. It was a single named peril policy – covering losses due to HAIL. 14 Trust that takes care of Today & Tomorrow

15. Coverage under Uttarakhand Seb Bima Yojana (USBY)-State Uttarakhand 15 Trust that takes care of Today & Tomorrow

16. Overall Coverage under NAIS,USBY& WBCIS-State Uttarakhand 16 Trust that takes care of Today & Tomorrow

17. Namaskar Trust that takes care of Today & Tomorrow