Agricultural Insurance Corporation of Indias (AICIL) attempts to expand its network in all the districts in the country have hit a roadblock, with the Government reluctant to clear the proposal.
AICIL had sought permission to strengthen and extend the reach of the farm-specific risk cover, Rashtriya Krishi Bima Yojana. The product was created to cover farmers of food crops, oil seeds, and commercial and horticultural crops. The coverage was extended to all farmers in the country, including sharecroppers and tenants. Besides, small and marginal farmers are eligible for 50 per cent subsidy. Premium rates on this product launched about three years ago ranges from 1.5 per cent to 3.5 per cent depending on the season.
For extending the reach of the farm risk cover product, AICIL had proposed opening at least 550 branches because its existing network remains confined to metros and some class I cities. The aim was also to have an extensive branch network so as to ascertain claims data and accelerate settlements. AICIL plans to expand its business beyond plain-vanilla farm insurance business and provide insurance cover to all farm activities, including livestock and poultry activities.
AICIL was set up three years ago after the cross-insurance business administered by General Insurance Corporation was transferred to it. GIC and Nabard currently hold 35 per cent and 30 per cent respectively of AICILs paid-up equity of Rs 200 crore. The remaining equity held by the four public sector insurers.
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| Posted : 7/8/2006 |
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