Coconut Palm Insurance Scheme

Coconut cultivation is perennial, and it involves many risks such as climatic changes, natural disasters, insects and pest attacks. At times it may completely wipe out the cultivation at the affected area and bring in the enormous loss for the farmers. The Coconut Development Board, a statutory body formed by the Ministry of Agriculture, Government of India, has been implementing insurance schemes to help small and medium coconut growers in overcoming the losses. In this article, let us have a look at the benefits of Coconut Palm Insurance Scheme (CPIS). Learn more about the

Objective of the Scheme

The purpose of the scheme is to:

• Extend financial assistance to the coconut growers in insuring their coconut palms against the natural and climatic disasters.
• Help stabilise the income for the coconut growers, especially during the disastrous years.
• Ensure risk minimisation
• Encourage coconut palm replanting among the farmers
• Restore coconut farming

Eligibility Conditions

The criteria based on which the insurance is covered under the scheme are:

1. Coconut growers should have a minimum of five healthy nut-bearing palms in any contagious area
2. Dwarf and Hybrid palm trees that are under the age group of 4--60 years
3. Tall palm trees that come under the age group of 7--60 years are eligible for the coverage
4. Unhealthy and old palms will not be entitled to the coverage
5. All the healthy palms within the age group are eligible for the insurance.
6. Partial insurance of plantation in the contagious area is not allowed.
7. Insurance coverage is from 4th/7th year to 60th year.

The insurance is divided into two age groups that fall between four and fifteen years and sixteen and sixty years, for fixing premium and sum insured.

Risks Covered under the Scheme

The risks that the scheme covers are:

• Storm, hailstorm, typhoon, cyclone, tornado, flood and heavy rains
• Pest attack that leads to irrecoverable damage to the coconut palm
• Forest fire, bush fire, accidental fire and lightning that destroys the palm completely
• Earthquake, Tsunami & landslide
• A severe drought that can lead to death and turn the palm unproductive
• Losses occurred due to theft, war, rebellion, revolution, natural perishability or uprooting is not covered under the scheme.

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Sum Insured under the Scheme

Insured sum and the payable premium for the palms vary according to the age group as listed below:

• For the age group between 4 and 15 years palm, the insured sum shall be900 per palm and the premium payable per plant per year isRs.9.
• For the age group between 16 and 60 years, the insured sum will be1750 per palm and the premium payable per plant per year isRs.14.

Premium Allotment

Out of the Insurance amount allotted under the scheme, the premium subsidy will be shared and paid as follows:

1. 50% by the Coconut Development Board (CDB),
2. 25% by the State Government
3. Farmers/growers will pay balance 25%
4. The premium subsidy amount will be released to Agricultural Insurance Corporation of India Ltd (AIC) in advance, which will be replenished/adjusted on a quarterly/yearly basis.

In case of any dispute and if the State Government disagrees to bear 25% share of the premium, farmers/growers should pay 10% of premium on their interest in an insurance scheme.

Insurance Term

The board disburses premium annually during the pilot stage of the insurance. All the eligible farmers/cultivators can enrol by 31st March of every year. On failure of enrolment during the March, they can sign up during the subsequent months and get benefited by the scheme. In case of risk, the insurance will be covered from the first day of the successive month.

Terms and Conditions

The board assesses the coconut palm for its damage and records it before releasing the claim. If the numbers of insured palms in a contiguous area are damaged due to perils, then the permission will be granted under the listed criteria,

• For the insured plan between ten and thirty palm trees, one palm will be permissible for the claim.
• For the insured plan between thirty-one and one hundred palm trees, two palms will be permissible for the claim.
• For the insured plan, more than one hundred, then three palms will be permissible for the claim.

Premium Payment Procedure

• The coconut grower, on account of their loss, should intimate the AIC within 15 days from the date of disaster with all required details.
• Loss Assessment Certification provided by Coconut Development Board/Agriculture/Horticulture Department/State Agriculture University (SAU), to explain the cause of loss of palms, should be submitted within 15 days from the intimation date.
• AIC will send its committee to review and evaluate the loss and release the premium within one month from the date of evaluation.
• If the AIC identifies the wrong declaration of age or any material fact provided by the coconut grower, the insurance will be nullified immediately.
• 50% of the claim amount is paid by CDB, 25% by the concerned State Government and balance 25% by the coconut growers. In case of failure of payment from the concerned State Government, a minimum of 10% premium should be paid by the coconut growers.
• The farmer/Grower may pay the premium through cash, cheque and bank draft, drawn in favour of AIC.
• The insurance scheme will be terminated once the full claim is paid to the coconut grower.