Rainfall Insurance Scheme for Coffee (RISC)

The Rainfall lnsurance Scheme for Coffee (RISC) is a unique rainfall based insurance scheme proposed for the welfare of coffee growers across the country. This scheme has been designed by the Agriculture lnsurance Company of India Limited (AlC) in collaboration with Coffee Board and the Coffee Growers Associations. Under this scheme, Agriculture lnsurance Company of India Limited provides insurance coverage for losses in coffee yield arising out of adverse rainfall. In this article, we look at the Rainfall Insurance Scheme for Coffee (RISC) in detail.

Also, read about Weather Based Crop Insurance Scheme

Objectives

The objectives of the Rainfall Insurance Scheme for Coffee (RISC) are listed below:

• To provide protection against adverse rainfall incidence in terms of both deficit and excess.
• To stabilise the income of coffee growers, especially during the disastrous years.
• To allow for speedy settlement of claims, within 45 days after the indemnity period.

Eligibility Criteria

The eligibility criteria to obtain the insurance benefit of the Rainfall Insurance Scheme for Coffee (RISC) are explained in detail below:

• Any coffee growers across the country are eligible to obtain this insurance.
• Any small coffee growers with plantation size up to 10 hectares are eligible for a subsidy towards premium payable by them from the Government of India and the respective State Government.

Note: In the case of medium and large coffee growers can apply for the scheme by paying the full premium.

Scope of Coverage

Rainfall Insurance Scheme compensates the insured persons against the diminished coffee output, yield resulting from excess or shortfall in the actual rainfall for which different coverage options within a specific geographical location are provided. RISC covers the following four coverage options:

• Blossom Shower Insurance which covers risks against deficit rainfall.
• Backing Shower Insurance which covers risks against deficit rainfall.
• Monsoon Rainfall Insurance which covers risks against excess rainfall.
• Post- Monsoon Rainfall Insurance which covers risks against excess rainfall.

Sum Insured

For Coffee grown in the Traditional Areas

The maximum sum insured per hectare for robusta and arabica coffee varieties would be of Rs.30,000 and Rs.40,000 respectively for covering all risk options like backing, blossom, monsoon and post-monsoon phases. The following are the phases tabulated below:

S. No	Phases	Arabica	Robusta
1.	Backing Showers	Rs.6,000	Rs.4,000
2.	Blossom Showers	Rs.10,000	Rs.8,000
3.	Monsoon Showers	Rs.14,000	Rs.10,000
4.	Post-Monsoon Showers	Rs.10,000	Rs.8,000
	Total	Rs.40,000	Rs.30,000

For Coffee grown in the NTA (AP & Odisha) & NER

The maximum sum insured per hectare for high yielding estates of NTA and other estates of NTA, NER would be of Rs.40,000 and Rs.20,000 for coverage of all risk options like backing, blossom, monsoon and post-monsoon phases. The following are the phases tabulated below:

S. No	Phases	High yielding estates in NTA	Other estates in NTA & NER
1.	Backing Showers	Rs.10,000	Rs.5,000
2.	Blossom Showers	Rs.14,000	Rs.7,000
3.	Monsoon Showers	Rs.8,000	Rs.4,000
4.	Post-Monsoon Showers	Rs.8,000	Rs.4,000
	Total	Rs.40,000	Rs.30,000

Premium

The premium would be calculated based on the type of coffee crop, location, coverage, past rainfall pattern in the specified geographical area under cultivation. Those coffee growers who obtain all four phases together would save on the premium. This would be finalised for every year by the agriculture insurance company in discussion with Coffee Board and Stakeholders before the commencement of the marketing season.

The premium for the coffee zones are tabulated as given below:

State	Andhra Pradesh			Karnataka			Karnataka
District	Visakhapatnam			Chikmagalur			Chikmagalur
Coffee Zone	Araku valley			Mudigere			Mudigere
Variety	Low Yielding Variety			Robusta			Arabica
Option	Sum Insured	Gross Premium	Premium	Sum Insured	Gross Premium	Premium	Sum Insured	Gross Premium	Premium
Blossom	Rs.7000	Rs.322	5%	Rs.8000	Rs.2362	30%	Rs.10000	Rs.1503	15%
Monsoon	Rs.4000	Rs.540	14%	Rs.10000	Rs.744	7%	Rs.14000	Rs.1145	8%
Post Monsoon	Rs.4000	Rs.859	21%	Rs.8000	Rs.368	5%	Rs.1000	Rs.1503	15%
Blossom and Backing	Rs.12000	Rs.552	5%	Rs.12000	Rs.3458	29%	Rs.16000	Rs.3017	19%
Blossom and Monsoon	Rs.11000	Rs.767	7%	Rs.18000	Rs.2818	16%	Rs.24000	Rs.2303	10%
Blossom, Backing and Monsoon	Rs.16000	Rs.989	6%	Rs.22000	Rs.3914	18%	Rs.30000	Rs.3778	13%
Blossom, Backing, Monsoon and Post Monsoon	Rs.20000	Rs.1776	9%	Rs.30000	Rs.4126	14%	Rs.40000	Rs.4610	12%
Monsoon & Post Monsoon	Rs.8000	Rs.1342	17%	Rs.18000	Rs.977	5%	Rs.24000	Rs.2159	9%

Note: The premium varies from zone to zone and year and year as per the historical rainfall of the zone. The farmers can select all four options or combinations of phases or individual option, respectively.

Premium Subsidy

The Coffee Board will extend the premium subsidy to all small coffee growers who possess up to 10 hectares in all coffee growing districts. The insurance premium and subsidy pattern contributed by the State and Central Government are as follows:

• Any small coffee growers possessed with 10 heaters in the North Eastern (NE) states: The subsidy at the rate of 75% will be reimbursed by the Central Government, and 15% would be contributed by State Government, and the balance 10% has to be self-owned by the beneficiary.
• Any SC/ST small coffee growers other than NE states: The subsidy at the rate of 60% will be reimbursed by the Central Government and 25% would be contributed by State Government, and the balance 15% has to be self-owned by the beneficiary.
• Other small coffee growers possessed with 10 heaters: The subsidy at the rate of 50% will be reimbursed by the Central Government, and 25% would be contributed by State Government, and the balance 25% has to be self-owned by the beneficiary.

Note: ln case any State Government is not willing to bear its share of Subsidy, the same has to be borne by the respective coffee growers, in addition to their own contribution.

How to Avail Insurance

Any coffee growers seeking to avail insurance cover can approach the Agriculture Insurance Company of India Limited or their respective agency. The premium subsidy would be reimbursed through demand draft drawn in favour of Agriculture Insurance Company of India Limited within the stipulated time.

Claim Documentation

Claims are automated, and it will be settled based on actual rainfall data received from the concerned institutions or agencies. Claims would be paid at a uniform rate to all the insured persons in the coffee zone, growing a particular variety of coffee. And the claims will be credited directly to the bank account of the insured person.

The insured is required to enclose the copy of the confirmation certificate indicating the proof of insurance and any other proof or document requested by Agriculture Insurance Company of India Limited for the settlement of the claim.