Agriculture insurance company of india

Infobox Company
company_name = Agriculture Insurance Company of India Limited
company_
company_type = Public Limited
company_slogan = Sampann Bharat Ki Pehchan, Beemit Phasal Kushal Kisan and Krishak Yatna Rakshan
foundation = 2003
location = Ambadeep Building, Connaught Place, New Delhi
industry = Insurance
key_people = M Parshad (Chairman & Managing Director)
num_emplyees = 300
products = Crop Insurance
net_premium = $129 MillionUSD (2007)
net_profit = $11 Million USD (2007)
homepage = [http://www.aicofindia.org/ www.aicofindia.org/]

Agriculture Insurance Company of India Limited is a public sector undertaking headquartered out of New Delhi in India. It currently offers area based and weather based crop insurance programs in almost 500 districts of India. It covers almost 20 million farmers, making it one of the biggest crop insurers in the world.

Agriculture Insurance Company Of India Ltd (AIC) is promoted by General Insurance Corporation of India (GIC), NABARD and the 4 Public Sector General Insurance companies. AIC has taken over the implementation of National Agricultural Insurance Scheme (NAIS) which until Financial Year 2002 – 03 was implemented by GIC.

AIC is under the administrative control of Ministry of Finance, Government of India, and under the operational supervision of Ministry of Agriculture. Insurance Regulatory and Development Authority, Hyderabad, is the regulatory body governing AIC.

AIC has 17 Regional Offices spread across India. AIC sells various agriculture and allied insurance products and schemes. A significant amount of business is derived out of National Agriculture Insurance Scheme. Some other products are:

• Weather Based Crop Insurance Scheme (WBCIS)
• Bio – fuel Tree/ Plant Insurance Policy
• Wheat Insurance
• Mango Insurance
• Varsha Bima
• Coffee Insurance
• Rubber Insurance

Business Model

An overwhelming majority of AIC's business is derived from the compulsory nature of crop insurance at the time of an agricultural loan, as directed by the Government of India.

Underwriting & ClaimsThe following depicts the chain of intermediaries involved in underwriting and claim settlement.

Farmer -> Primary Agricultural Credit Society (PACS) -> Bank Branch -> Nodal Bank -> AIC

A farmer is either categorized as 'Loanee' (has taken an agricultural loan from a participating financial institution) or 'Non-Loanee' (has only bought insurance cover without a loan involved). The farmer may interact with a local PACS in his area or with a Bank Branch directly.

A participating bank may be of three types - (1) Regional Rural Bank (2) Commercial Bank (3) District Central Cooperative Bank (DCCB)

One or two bank branches in each district in India would be designated as a Nodal Bank. This bank would interact directly with AIC.

A consolidated 'Declaration' which lists insurance parameters for an entire region is forwarded by the PACS/Bank Branch to the next level until it finally reaches the Nodal Bank. The Nodal Bank then remits the premium and information to AIC.

At the time of claims disbursement, the cycle reverses.

Project AICNET

In September 2007 AIC released a tender which solicited consultancy for a comprehensive technology solution to automate operational aspects of its business. The tender document also focused on using business analytics extensively. Once completed as described in the tender, AICNET would facilitate interaction with more than 20 million farmers, and also provide some detail into the habits of the rural Indian consumer.

External Links

* [http://www.aicofindia.org/ Company website]
* [http://www.aicofindia.org/aicnet.html Project AICNET]