This policy provides comprehensive insurance to all types of Crops/Trees grown and maintained by the farmer against direct losses.
What We Cover
The farmer shall be indemnified for losses caused by:
- Drought (only for non-irrigated crops)
- Uncontrollable pests and diseases
- Hailstone damage
- Flooding of the crop field
- Fire and lightning
- Windstorm
- Frost
- Excessive rainfall
Exclusions
The policy does not cover the following:
- Consequential losses (e.g., due to delay, detention, confiscation, etc.)
- Negligence or poor crop management
- Loss or damage due to birds and wild animals
- Loss or damage due to arson
- Loss due to fall armyworm or any other controllable but stubborn pests
- Theft, except while in direct transit between the insured’s premises and a recognized buyer within the insured territory
- Loss or damage due to the crop’s own fermentation, natural heating, or spontaneous combustion
- Burning of the crop by order of any public authority or due to subterranean fire
- If, at the time of cover inception, the crop is not the insured’s bona fide property or if the insured has no financial interest in the crop
Types of Crop Insurance
Crop insurance is offered under two main categories:
1. Multi-Peril Crop Insurance (MPCI)
- Indemnity-based: The insured is restored to their original financial position.
- Covers a single crop per risk.
- The sum insured is calculated based on the cost of production (e.g., land preparation to harvesting, excluding land clearing and stump removal).
- Inclusions and exclusions remain as stated above.
2. Parametric Insurance
This insurance uses specific, measurable parameters (e.g., weather data) to determine payouts.
Weather Index Insurance
- Designed to mitigate risks from changing weather conditions.
- Payouts are triggered automatically when weather exceeds predefined thresholds (e.g., precipitation, temperature, wind, humidity).
- Based on historical and current weather data in the insured location.
Area Yield Index Insurance
- Payouts are based on yield shortfalls compared to the average yield for a specific ecological zone.
- If a farm's actual yield is below the standard for the zone, a payout is triggered based on the percentage of loss.
