Agriculture Insurance New Final

VIVEK COLLEGE OF COMMERCE
CHAPTER
INTRODUCTION OF AIC INDIA LIMITED
Agriculture Insurance Company of India Limited (AIC) offers yield-based

and weather-based crop insurance programs in almost 500 districts of India. It
covers almost 20 million farmers, making it the biggest crop insurer in the
world in number of farmers served. Agriculture Insurance Company of India
Limited is a limited company headquartered out of New Delhi, India [1]
AIC aims to provide insurance coverage and financial support to the farmers in
the failure of any of the notified crop as a result of natural calamities, pests and
diseases to restore their creditworthiness for the ensuing season; to encourage
the farmers to adopt progressive farming practices, high value in-puts and
higher technology; to help stabilize farm incomes, particularly in disaster years.
AGRICULTURE INSURANCE

The plan provides comprehensive risk insurance for yield losses due to natural
fire and lightning, storms, hailstorms, cyclone, typhoon, tempest, hurricane,
tornado flood, inundation, landslide, drought, dry spells, pests/diseases, etc.[1
CHAPTER
PROFILE OF AIC
Agriculture Insurance Company of India Limited (AIC) has been formed at
the behest of Government of India, consequent to the announcement by the then
Hon'ble Union Finance Minister in his General Budget Speech FY 2002-03 that,
"to subserve the needs of farmers better and to move towards a sustainable
actuarial regime, it was proposed to set up a new Corporation for Agriculture
Insurance".
AIC has taken over the implementation of National Agricultural Insurance
Scheme (NAIS) which, until FY 2002-03 was implemented by General
Insurance Corporation of India. In addition, AIC also transacts other insurance
businesses directly or indirectly concerning agriculture and its allied activities.
Share Capital
Authorised Share Capital - Rs. 1500 Crores
Paid-up Share Capital - Rs. 200 Crores
Promoters (Share Holding)

General Insurance Corporation of India - 35 %
National Bank for AgricultureAnd Rural Development (NABARD) -
30%

National Insurance Company Limited - 8.75 %
The New India Assurance Company Limited - 8.75 %
The Oriental Insurance Company Limited - 8.75 %
United India Insurance Company Limited - 8.75 %
Significant Dates
Incorporation - 20th December, 2002
Commencement of Business - 1st April, 2003
Registered Office and Head Quarters
13th Floor,
AMBA DEEP", 14, Kasturba Gandhi Marg, New Delhi - 110 001,
INDIA
Ph. No
011-46869800
Fax No
011-46869815
E-Mail : aicho@aicofindia.com
CHAPTER
INCORPORATION AND COMMENCEMENT OF BUSINESS
AIC was incorporated on 20 December 2002 with an authorized capital of Rs.
1500 crore. The initial paid-up capital was Rs. 200 crores, which was subscribed
by the promoting companies, General Insurance Corporation of India GIC
(35%), NABARD (30%) and the four public-sector general insurance
companies (8.75%) each, viz., National Insurance Co. Ltd., Oriental Insurance
Co. Ltd., New India Assurance Co. Ltd., and United India Insurance Co. Ltd.[2][3]
AIC is under the administrative control of Ministry of Finance, Government of
India, and under the operational supervision of Ministry of Agriculture,
Government of India. Insurance Regulatory and Development Authority
(IRDA), Hyderabad, India, is the regulatory body governing AIC.
AIC commenced its business operations from 1 April 2003 by taking over the
implementation of the "National Agricultural Insurance Scheme" (NAIS) from
GIC. AIC has been designated by the Govt., of India as the "Implementing
Agency" of NAIS, its country-wide crop insurance program.
CHAPTER
COMPANY'S VISION & MISSION
COMPANY'S VISION
Accelerate the economic momentum of the Nation by bringing
financial
stability to rural India.
innovate and develop rural-oriented and farmer-friendly insurance
products for
all agricultural allied risks.
Cast a protective net over agricultural and allied activities from natural
perils
and risks.
COMPANY'S MISSION
Agricultural insurance products be designed and developed on scientific
basis
and sound insurance principles to address diverse needs of farmers;
Improve delivery and service of agricultural insurance so as to bring the
remotest and poorest farmer under its umbrella in an economical and
effective
manner;
Create widespread awareness about agricultural insurance as the principal
risk
mitigation tool, and thus establish it as an effective bulwark of the rural
economy
CHAPTER
5
COMPANY'S ACTIVITIES
Agriculture and allied insurance products, insuring more than 35 crops
during Kharif and 30 crops during Rabi season.
Implementing Agency for "National Agricultural Insurance Scheme" and
"Weather Based Crop Insurance Scheme", the Crop Insurance Schemes of
the Government.
Create innovative, tailor-made & farmer-friendly insurance products for
specific risk perceptions.
MANAGEMENT OF AIC OF INDIA. LTD.
S No.
Name
Designation
Sh.Plappallil Joseph
Chairman-cum-Managing Director & Chief
Joseph
Executive Officer
Sh.Malay Kumar Poddar
General Manager & Chief of Internal Audit
Sh. Rajeev Chaudhary
General Manager & Chief Risk Officer
Sh. Avinanda Ghosh
General Manager & Chief Finance Officer
Sh. Rampal Singh Rawat
Chief Manager & Chief Investment Officer
Sh. Ajay Singhal
Chief Manager & Chief Marketing Officer
Sh. Sukanta Roy

Chowdhury
Smt. Megha Garg
Manager & Chief Compliance Officer
Appointed Actuary
CHAPTER
CROP INSURANCE
Background and early attempts at Crop Insurance
Crop insurance as a concept for risk management in agriculture has emerged in
India since the turn of the twentieth century. From concept to implementation, it
has evolved sporadically but continuously through the century and is still
evolving in terms of scope, methodologies and practices.
India is an agrarian country, where the majority of the population depends on
agriculture for their livelihood. Yet, crop production in India is dependent
largely on the weather and is severely impacted by its vagaries as also by attack
of pests and diseases. These unpredictable and uncontrollable extraneous perils
render Indian agricultural and extremely risky enterprise. It is here that crop
insurance plays a pivotal role in anchoring a stable growth of the sector.
CHAPTER
DIFFERENT TYPES OF CROP INSURANCE SCHMES
FIRST EVER CROP INSURANCE SCHEME - 1972
From beginning of the seventys decade, different experiments on crop
insurance were undertaken on a limited, ad-hoc and scattered scale. The first
crop insurance program was introduced in 1972-73 by the General Insurance
Department of Life Insurance Corporation of India on H-4 cotton in Gujarat.
Later, the newly set up General Insurance Corporation of India took over the
experimental scheme and subsequently included Groundnut, Wheat and Potato
and implemented in the states of Gujarat, Maharashtra, Tamil Nadu, Andhra
Pradesh, Karnataka and West Bengal.
This experimental scheme was based on "Individual Approach". It continued
upto 1978-79 and covered only 3110 farmers for a premium of 4.54 lakhs
against claims of 37.88 lakh.
It was realized that crop insurance programs based on the individual farm
approach would not be viable and sustainable in this country.
10
CHAPTER
PILOT CROP INSURANCE SCHEME (PCIS) - 1979
Professor V. M. Dandekar, often referred to as the Father of Crop Insurance in
India, suggested an alternate Homogeneous Area approach for crop
insurance
in
the
mid-seventies.
11

Based on this Area approach, the General Insurance Corporation of India (GIC)
introduced a Pilot Crop Insurance Scheme (PCIS) from 1979. Participation by
the State Govts. was voluntary. The scheme covered cereals, millets, oilseeds,
cotton, potato, gram and barley. The risk was shared by GIC and the respective
State Govt. in the ratio of 2:1. The insurance Premium ranged from 5 to 10 per
cent of the Sum Insured.
This PCIS ran till 1984-85 by which 13 States had participated. The scheme
covered 6.27 lakh farmers for a Premium of 1.97 crore against Claims of 1.57
crore.
12
CHAPTER
COMPREHENSIVE CROP INSURANCE SCHEME (CCIS) 1985
Based on the learnings from PCIS, the Comprehensive Crop Insurance Scheme
(CCIS) was introduced with effect from 1 st April 1985 by the Government of
India with the active participation of State Governments. The Scheme was
optional for the State Governments. The CCIS was implemented on
Homogeneous Area approach and was linked to short-term crop credit, that is,
all crop loans given for notified crops in notified areas were compulsorily
covered under the CCIS.
The salient features of the Scheme were:
1.
It covered farmers availing crop loans from Financial Institutions for

growing food crops & oilseeds on compulsory basis. The coverage was
restricted to 100% of crop loan subject to a maximum of ` 10,000/- per
farmer.
2.
The Premium rates were 2% for Cereals and Millets and 1% for Pulses and
Oil seeds. 50% of the Premium payable by Small & Marginal farmers was
subsidized by Central and State Governments in equal proportion.
3.
Premium & Claims were shared by Central & State Government in 2:1
ratio.
4.
The Scheme was optional to State Governments.
5.
The maximum Sum Insured was 100% of the crop loan, which was later
increased to 150%.
6.
CCIS was a multi-agency scheme, involving Government of India,

Departments of State Governments, Banking Institutions and GIC.
13

15 States and 2 UTs had participated in the CCIS during its tenure from
Kharif 1985 to Kharif 1999. These were Andhra Pradesh, Assam, Bihar, Goa,
Gujarat, Himachal Pradesh, Karnataka, Kerala, Madhya Pradesh,
Maharashtra, Meghalaya, Orissa, Tamil Nadu, Tripura, West Bengal,

Andaman & Nicobar Islands and Pondicherry.
The States of Rajasthan,UttarPradesh, Jammu & Kashmir, Manipur and Delhi
had initially joined the Scheme but opted out after few yearIn this entire period,
the Scheme covered 7.63 crore farmers under an area of 12.76 crore hectares,
for a Sum Insured of 24,949 crore at a premium of 403.56 crore.
Correspondingly, the total claims outgo was 2303.45 crore, thus having a Claim
Ratio of 1 : 5.71. About 59.78 lakh farmers were benefitted, and the majority of
the claims were paid in the States of Gujarat - 1086 crore (47%); Andhra
Pradesh - 482 Crores (21%); Maharashtra - 213 Crores (9%); & Orissa - 181
Crores (8%).CCIS was eventually discontinued after Kharif 1999, to be
replaced by the improved and expanded National Agriculture Insurance
Scheme (NAIS), which is being continued till date.
14
CHAPTER
EXPERIMENTAL CROP INSURANCE SCHEME (ECIS) - 1997
While the CCIS was being implemented, attempts were made to modify the
existing CCIS from time to time as demanded by the States. During the Rabi
1997-98 season, a new scheme, viz. Experimental Crop Insurance Scheme
(ECIS) was introduced in 14 districts of 5 States. The Scheme was similar to
CCIS, except that it was meant only for all small / marginal farmers with 100%
subsidy on Premium. The Premium subsidy and Claims were shared by the
Central and respective State Governments in the ratio of 4 : 1. The Scheme was
discontinued after one season due to its many administrative and financial
difficulties.
During its one season, the ECIS covered 4,54,555 farmers for a Sum Insured
of 168.11 crore at a Premium of 2.84 crore against which the Claims paid
were 37.80 crore.
15
CHAPTER
PILOT SCHEME ON SEED CROP INSURANCE (PSSCI) - 2000
A Pilot Scheme on Seed Crop Insurance (PSSCI) was introduced in Kharif 2000
season in 11 States to provide financial security & income stability to the Seed
Growers in the event of failure of seed crop. It was also the objective to provide
stability to the infrastructure established by the State owned Seed Corporations
and State Farms, and to give a boost to the modern seed industry by bringing it
under scientific principles. All seed-producing organizations, under Govt. or
private
control,
producing
certain
classes
of
seed
for
identified
Crops/States/Areas were eligible. All farmers growing the Foundation &

Certified seed crops in the identified States /Areas, who had offered the seed
crop for certification and had got registered with the concerned Certification
Agency were eligible for coverage.
16
CHAPTER
FARM INCOME INSURANCE SCHEME (FIIS) - 2003
NAIS protects the farmers only against the yield fluctuations. The price
fluctuations are outside the purview of this scheme. Farmers income is a
cumulative function of yield and market prices. In other words, a bumper
harvest tends to bring down the market prices of grains and vice versa.
Therefore, despite normal production, farmers often fail to maintain their
income level due to fluctuations in market prices. To take care of variability in
both the yield and market price, the government introduced a pilot project, viz.
Farm Income Insurance Scheme (FIIS) during Rabi 2003-04 season.
The objective of the scheme was to protect not only the income of the farmer,
but also to reduce the government expenditure on procurement at Minimum
Support Price (MSP).
FIIS was implemented on the basis of homogeneous area approach in respect
of rice and wheat crops only. The scheme was compulsory for loanee farmers
and voluntary for non-loanee farme` The premium rates were actuarial,
determined for each State at the District level, to be subsidised by the Govt. of
India.
Claims would arise if the actual income (current yield X current market price)
was lower than the guaranteed income (7 years average yield X level of
indemnity [80% or 90%] X MSP).
The Scheme was implemented during 2 seasons only, viz. Rabi 2003-04 season
in 18 Districts of 11 States for wheat/rice, and Kharif 2004 season in 19
17

Districts of 4 States for rice alone. In all, the scheme covered 4.15 lakh farmers
for an area of 4.02 lakh hectares for a Sum Insured (i.e. guaranteed income)
of 420crore, collecting a premium of 28.5 crore and paid claims of 28.75 crore.
From Rabi 1999 season, the CCIS was discontinued and replaced by the
National Agriculture
Insurance
Scheme
(NAIS),
which
is
being
implemented to date as the flagship yield based crop insurance program of

the Government.
Parallelly, the implementation and administration of crop insurance
schemes, which were being done by General Insurance Corporation of
India (GIC), was taken over by Agriculture Insurance Company of India
Ltd. (AIC) since its commencement of business from 1st April 2003.
18
CHAPTER
ROLE OF VARIOUS AGENCIES:
(A). ROLE & RESPONSIBILITIES OF FINANCIAL
INSTITUTIONS (FIs) :
For the purpose of the Scheme, the Scheduled Institutions engaged in disbursing
SAO loans as per the relevant guidelines of NABARD / RBI will be reckoned
as Financial Institutions.
Each scheduled Commercial bank shall with concurrence of IA fix Nodal points
which would deal with IA on behalf of branches in the division / district / state.
The Nodal points for Commercial banks will be minimum one level above the
Branch office. The Nodal points for Cooperative banks will be DCC Banks and
those for RRBs, their Head Office.
Nodal Points Would Be Designated For Implementation And These Banks
Would Attend To The Following Functions:
1. On receipt of the communication on notification of crops and areas from
the State Govt./ UT, the Nodal banks will communicate the same to the
branch offices under their control.
2. The FIs would advance additional loan to Loanee farmers to meet
requirement of Insurance charges / premium as applicable upto the extent
of crop loan.
3. Each such Nodal point would submit crop-wise, defined area-wise,
monthly Crop insurance Declarations to the Office of IA, in the
19

prescribed format, along with Insurance charges payable on all crop loans
coming under the purview of the Scheme in case of Loanee farmers and
based on Proposals received in case of other farmers.
4. The Apex FIs shall issue appropriate instructions to Nodal banks as well
as crop loan disbursing branches to ensure smooth functioning of the
Scheme.
5. For insurable crop loans disbursed under Kissan Credit Card (KCC), the
FIs shall maintain all controls and records as
20
CHAPTER
OTHER RESPONSIBILITIES OF FIS WILL BE:
To educate the farmers on the Scheme features.
To guide the farmers in filing the proposal forms and collecting the
required documents.
Following the guidelines while disbursing crop loans and ensuring
proper end-use of loan disbursed.
To prepare the consolidated statements for Loanee and Non-Loanee
members, forwarding the same to the branch along with the premium
amount
Maintaining the records of proposal forms, other relevant documents,
statements for the purpose of verification by the district committee or
representative of the insurer.
21
SPECIAL CONDITIONS FOR FIS / NODAL BANKS / LOAN

DISBURSING POINTS:
1. FIs will submit Crop Insurance Declarations to IA on monthly basis,
where sum insured is on the basis of amount of loan disbursed and within
one month time from cut-off date for receipt of proposals, where sum
insured is on any other basis.
2. Claims received by the Nodal points, will be remitted to individual
branches/PACS with all particulars within seven days and these
branches/PACS will in turn credit the Accounts of beneficiary farmers
within seven days. The list of beneficiary farmers with claim amount will
be displayed by the branch / PACS.
3. The IA will have access to all relevant records/ledgers at the Nodal
point/Branch/PACS at all times.
4. The IA will be provided with all the norms / guidelines relating to SAO
crop loan disbursements as formulated by RBI / NABARD. Any
5. amendments / simplification of procedures / norms from time to time will
be duly made available to IA by the concerned institutions. In the absence
of such communication, IA shall be free to not take cognisance of such
modifications.In case a farmer is deprived of any benefit under the
Scheme due to errors / omissions / commissions of the Nodal Bank
22

6. In case a farmer is deprived of any benefit under the Scheme due to errors
/omissions/ commissions of the Nodal Bank/Branch/PACS, the concerned
institutions only shall make good all such losses.
7. If the farmer is adopting mixed cropping, the sum insured of a crop
should be on the basis of it's proportionate area.
23
CHAPTER
(B). ROLE & RESPONSIBILITIES OF STATE GOVERNMENT
UT ADMINISTRATION:
1. The State Government / UT will notify crop wise notified areas and
premium rates as applicable (in case of commercial/horticultural crops)
well in advance of each crop season.
2. The State Government / UT administration would, in advance provide to
the IA, Unit Area-wise yield data of immediate past 10 years for all crops
notified under the Scheme.
3. To the extent possible, the State Government / UT administration would
notify smaller defined areas for various crops, keeping in mind that
smaller areas will be more homogeneous and would be more reflective of
all crop losses, including localized perils like hailstorm, landslide etc.
4. The State Government shall issue the requisite Notification and
communicate to all participating FIs during every crop season. The
Notification of the State Government may essentially contain the
following information:
i. Crops and Defined areas notified in various districts.
ii. Premium rates and subsidy, if and as applicable for various
groups of farmers and crops.
iii. The cut-off dates for collection of proposals and remittance
of premium with Crop Insurance Declarations to IA.
24

5. The State / UT administration will release it's contribution to Corpus
Fund as per the scale and dates fixed by MOA, the Government of India.
6. The State / Union Territory administration would ensure that Crop
Estimation Surveys (CES) in general, and estimation procedures in case
of multiple picking crops in particular be strengthened in order to furnish
accurate estimates of yield. Further, the State / UT administration will
assist IA in assessing the extent of crop loss of individual insured farmers

due to operation of localised perils.
7. To set up various monitoring Committees as required.

8. The final Yield data in the standard format for all Unit Areas for notified
crops for the crop season will be furnished to IA within the stipulated
date.
9. In case, the State /UT administration fail to furnish yield data based on
requisite number of CCEs or fail to furnish yield data within the
stipulated date, responsibility of such claims, if any arising out of such
data will totally rest with State / UT administration.
10.The IA will be allowed unrestricted access to records of CCEs at grass
root / District / State level.
11.State Government / UT Administration shall set up District Level
Monitoring Committee (DLMC), headed by the District Magistrate. The
members will be District Agriculture Officer, DCCB, Lead Bank
representative and IA. The committee will monitor implementation of
25

Scheme by providing fortnightly crop condition reports and periodical
reports on seasonal weather conditions, loans disbursed, extent of area
cultivated, etc. The DLMC shall also monitor conduct of CCEs in the
district.
1. As the Scheme is optional to Non-loanee farmers, adequate publicity
will be provided to ensure maximum coverage of farmers through all
means available at the disposal of State / UT administration
CHAPTER
(C).
ROLE
AND
RESPONSIBILITIES
OF
THE
IMPLEMENTING AGENCY (IA):

1. Implementing Agency of the Scheme.
2. The IA shall open separate Accounts to deal with Corpus Fund and also
premiums received under the Scheme.
3. Building up crop yield database and preparation of Actuarial premium
rates through a Professional agency.
4. Underwriting and Claims finalization.
5. Responsibility for claims to the extent mentioned in the Scheme.
6. Negotiating Re-insurance arrangement in the international market.
7. Co-ordination in organizing training, awareness, publicity programmes.
8. Providing returns / statistics to the Government of India.
26

9. Examining and exploring possibilities of setting up separate agency for
implementation of the Scheme.
27
CHAPTER
(D). DUTIES OF FARMERS:
1. As the Scheme is compulsory for all Loanee farmers availing SAO loans
for notified crops, it is mandatory for all Loanee farmers to insist on
coverage of all eligible loans (as per the Scheme provisions) under the
Scheme.
2. If the farmer is adopting mixed cropping, the proportion of different crops
in a mixed cropping will have to be compulsorily declared.
3. In respect of Non-loanee farmers, the Proposals will be accepted only
upto stipulated cut-off date, which will be decided in consultation with
StateGovernment/UTadmn.
The important duties in case of Non-loanee farmers are as follows:
o The farmer desiring coverage should have an Account in the
branch of the designated bank.
o The farmer must approach the designated branch / PACS and
submit the proposal form in the prescribed format.
o The farmer must provide documentary evidence in regard to the
possession of cultivable land (copy of the pass book, 7/12 / land
extract or land revenue receipt should be enclosed).
o The farmer must furnish area sown confirmation certificate, if
required.
28
29
CHAPTER
NATIONAL AGRICULTURE INSURANCE SCHEME
(Rashtriya Krishi Bima Yojana - RKBY)
Objectives
The objectives of the NAIS are as under:1.
To provide insurance coverage and financial support to the farmers in the

event of failure of any of the notified crop as a result of natural calamities,
pests & diseases.
2.
To encourage the farmers to adopt progressive farming practices, high

value inputs and higher technology in Agriculture.
3.
To help stabilise farm incomes, particularly in disaster years.
Salient Features Of The NAIS Scheme

1. Crops Covered
2 States & Areas to be Covered
3. Farmers to be Covered
4. Risks Covered & Exclusions
5. Sum Insured / Limit of Coverage
6. Premium Rates
7. Premium Subsidy
8. Sharing of Risk
9. Area Approach and Unit of Insurance
30

10. Seasonality Discipline
11. Estimation of Crop Yield
12. Levels of Indemnity & Threshold Yield
13. Nature of Coverage and Indemnity
14. Procedure for Approval & Settlement of Claims
15. Financial Support Towards Administration & Operating (A&O) Expenses
16. Corpus Fund
17. Reinsurance Cover
18. Management of the Scheme, Monitoring and Review
19. Implementing Agency
20. Benefits Expected from Scheme
21. Operational Modalities
31
CHAPTER
GRIEVANCE REDRESSAL POLICY [GRP]

I. REGULATORY REQUIREMENT
According to Section 5 of the Insurance Regulatory and Development Authority
(Protection of policyholders' interests) Regulations 2002, every insurer shall
have in place proper procedures and effective mechanism to address complaints
and grievances of policyholders, efficiently and with speed.
II. DEFINITIONS
1. 'Grievance' shall mean any written communication by a Complainant that
expresses dissatisfaction about an action or lack of action by, or about the
standard of service of, the Company and/or its representative, in relation to
his/her insurance coverage by the Company.
Illustrations: Policy issuance (e.g. non-issuance, delay), Premium refund (e.g.
admissibility, quantum, delay), Claims (e.g. admissibility, quantum, delay)etc.
2. 'Company' shall mean Agriculture Insurance Company of India Limited
[AIC]
3. 'Complainant' shall mean any policyholder (including legal heirs, assigns, and
authorized representatives) who has a Grievance.
32

4. 'Redressal' shall mean the final disposal of the Grievance through
communication to the Complainant (in case of non-redressal, stating reasons for
the same).
5. 'Regulator' shall mean the Insurance Regulatory and Development Authority
[IRDA].
6. 'Working Day' shall mean any day (other than Saturday, Sunday or Public
Holiday) on which the Company is open for business.
7. 'Week' shall mean consecutive seven Working Days.
III. GRIEVANCE REDRESSAL SET-UP OF AIC

1. Chief Grievance Redressal Officer [CGRO] - a designated Officer at HO, as
the representative of the Company for its Grievance Redressal Policy [GRP]
2. Grievance Redressal Officer [GRO] - a designated Officer at HO and each
RO, as the implementing officer of GRP at the respective office
3. Grievance Redressal Register [GRR] - in the prescribed format to keep track
of the Grievances and their Redressal, to be maintained by each designated
GRO at his respective office.
33
OFFI
OFFIC
OFFIC
CE
ER
HO
LEVEL
NOT
CGR
O

RESPONSBILITIES
NOMINATIN
GG
AUTORITY
Representative of the Company CMD
BELO
for its
Grievance Redressal
Policy [GRP]
Appellate Authority for the
Grievance cases.
To apprise the Board and
SCALE
VI
other
Authorities
about
the
Company's GR
GRO
HO
NOT
Implementation and
BELO
compliance of
W IV
the Grievance Redressal Policy at the
CGRO
respective office. To report to CGRO

periodically about the GR status at
the
respective office.
RO
ANY
To suggest/recommend to CGRO,
OFFIC
Systemic amendments, if any, with a
ER
view to
minimize the incidence of
34
CHAPTER
V. GRIEVANCE REDRESSAL PROCEDURE
1. A Grievance may be communicated by the Complainant to the Company
[GRO] in writing, through post, e-mail, fax, personal submission, etc. In case
of personal submission, a receiving signature is necessary.
2. Upon receipt of a Grievance, the GRO shall enter the details thereof in the
Grievance Redressal Register [GRR].
3. Within 5 (five) Working Days of receipt of a Grievance, an Acknowldgement
shall be sent by the GRO to the Complainant, containing details of the GRO
(name, designation, contact), Grievance (reference no., remarks, if any), and
Redressal (set-up & procedure, AND, estimated Redressal time/finalRedressal).
4. Effort should be made by GRO to redress every Grievance within 5 (five)
Working Days from the date of its receipt. If the same is achieved, it shall be
communicated to the Complainant in the Acknowledgement itself.
5. If the Grievance has not been redressed within 5 (five) Working Days from its
receipt, the Acknowledgement shall mention the estimated time limit of
Redressal (not exceeding 4 (four) Weeks from receipt).
6. If the Grievance has not been redressed by the end of 4 (four) Weeks of its
receipt, the GRO shall send to the Complainant a further letter informing the
reasons for such delay and the further estimated time limit (not exceeding 8
(eight) Weeks from receipt) for Redressal.
35

7. If the Grievance has still not been redressed at the level of the GRO by the
end of 8 (eight) Weeks of its receipt, the matter can be escalated to Appeal by
the Complainant before the CGRO.
36
CHAPTER
VI. APPEAL
1. The Appellate Authority under GRP shall be the CGRO.
2. A Complainant may escalate the Grievance to Appeal in the following
Circumstances:
1. If the Complainant has not received any of the mandated
communiqus (as
3. Per clauses 3 and 6 of Section V) within 2 (two) Weeks of the mandated
time
4. Limits. b) If the Grievance has not been redressed at the level of the GRO
by the end of 8 (eight) Weeks of its receipt.
5. c) If the Complainant is not satisfied with the Redressal of Grievance by
theGRO.
6. An Appeal can be preferred in writing within 12 (twelve) Weeks from the
date of communication of the Grievance to the Company. It is abundantly
clarified here that beyond this time limit the Complainant shall lose his
right to Appeal, and the Grievance shall be deemed to have been closed.
7. The Appellate Authority (CGRO) shall decide the Appeal (and thus close
the Grievance) within 4 (four) Weeks of receipt of Appeal (in case of non6 Redressal, stating reasons for the same). This final decision shall be
communicated to the Complainant by the CGRO.
8. The decision of the Appellate Authority (CGRO) shall be final and shall
close the Grievance. To this end, the Appellate Authority shall be guided
by the principles of natural justice, fair play and equity while deciding the
Appeal.
9. Any Grievance escalated to Appeal shall be automatically (online)

reported to the Regulator through integration of the Company's IT system
with that ofthe Regulator. Till such time as a suitable IT system is
37

developed, the CGRO shall periodically report to the Regulator the
pending Appeal cases.
10.
11.
38
CHAPTER
VII. FINAL REDRESSAL AND CLOSURE OF GRIEVANCE
1. A Grievance shall be treated as finally redressed and/or closed in any of
thefollowing circumstances:
a) Where the Complainant has indicated in writing, his/her acceptance of the
Company's Redressal of Grievance.
b) Where the Complainant has not preferred an Appeal within 12 (twelve)
Weeks from the date of communication of the Grievance to the Company.
c) Where the Appeal decision has been communicated to the Complainant by
the CGRO.
2. The final Redressal and closure of Grievance shall be communicated to the
Complainant by the GRO concerned (in Appeal cases, by the CGRO).
39
CHAPTER
VIII. REVIEW AND REPORTING
1. The GRO shall periodically submit an analytical report to the CGRO in a
prescribed format (prescribed by CGRO from time to time), in respect of
Grievance Redressal status.
2. The GRO may suggest/ recommend to the CGRO, systemic amendments, if
any, with a view to minimizing the incidence of Grievance.
3. The CGRO shall periodically review the Grievance Redressal procedure,
reports submitted by the GRO, cases decided by various Consumer Fora,
Ombudsman and other judicial Bodies, in order to improve
a) The Grievance Redressal Policy of the Company
b) The process, systems & activities of the Company to reduce the incidence
ofthe Grievance.
40
41

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VIVEK COLLEGE OF COMMERCE

Agriculture Insurance Company of India Limited (AIC) offers yield-based

VIVEK COLLEGE OF COMMERCE

Authorised Share Capital - Rs. 1500 Crores

Paid-up Share Capital - Rs. 200 Crores

Promoters (Share Holding)

VIVEK COLLEGE OF COMMERCE

The New India Assurance Company Limited - 8.75 %

The Oriental Insurance Company Limited - 8.75 %

United India Insurance Company Limited - 8.75 %

Incorporation - 20th December, 2002

Commencement of Business - 1st April, 2003

Registered Office and Head Quarters

VIVEK COLLEGE OF COMMERCE

VIVEK COLLEGE OF COMMERCE

VIVEK COLLEGE OF COMMERCE

VIVEK COLLEGE OF COMMERCE

MANAGEMENT OF AIC OF INDIA. LTD.

Chairman-cum-Managing Director & Chief

Sh.Malay Kumar Poddar

General Manager & Chief of Internal Audit

Sh. Rajeev Chaudhary

General Manager & Chief Risk Officer

Sh. Avinanda Ghosh

General Manager & Chief Finance Officer

Sh. Rampal Singh Rawat

Chief Manager & Chief Investment Officer

Sh. Ajay Singhal

Chief Manager & Chief Marketing Officer

Sh. Sukanta Roy

Manager & Chief Compliance Officer

VIVEK COLLEGE OF COMMERCE

VIVEK COLLEGE OF COMMERCE

VIVEK COLLEGE OF COMMERCE

VIVEK COLLEGE OF COMMERCE

VIVEK COLLEGE OF COMMERCE

VIVEK COLLEGE OF COMMERCE

It covered farmers availing crop loans from Financial Institutions for

The Scheme was optional to State Governments.

CCIS was a multi-agency scheme, involving Government of India,

VIVEK COLLEGE OF COMMERCE

Maharashtra, Meghalaya, Orissa, Tamil Nadu, Tripura, West Bengal,

VIVEK COLLEGE OF COMMERCE

VIVEK COLLEGE OF COMMERCE

Crops/States/Areas were eligible. All farmers growing the Foundation &

VIVEK COLLEGE OF COMMERCE

VIVEK COLLEGE OF COMMERCE

implemented to date as the flagship yield based crop insurance program of

VIVEK COLLEGE OF COMMERCE

VIVEK COLLEGE OF COMMERCE

VIVEK COLLEGE OF COMMERCE

VIVEK COLLEGE OF COMMERCE

SPECIAL CONDITIONS FOR FIS / NODAL BANKS / LOAN

VIVEK COLLEGE OF COMMERCE

VIVEK COLLEGE OF COMMERCE

VIVEK COLLEGE OF COMMERCE

assist IA in assessing the extent of crop loss of individual insured farmers

7. To set up various monitoring Committees as required.

VIVEK COLLEGE OF COMMERCE

IMPLEMENTING AGENCY (IA):

VIVEK COLLEGE OF COMMERCE

VIVEK COLLEGE OF COMMERCE