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 SchemeObjectives
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.
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% |
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.
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.Related Guides
Popular Post
Starting a small business can be a transformative venture, offering the exciting opportunity...
Tax deduction at source, shortly and popularly known as TDS, was introduced by the Income Tax...
Goods & Services Tax Certificate is issued to people who are registered under GST...
GST registration applies to all individuals and entities supplying goods or services in India. GST...
Gift tax in India is applied when the value of the received gift exceeds ₹50,000 in the...
The Union Budget 2025 has brought significant changes to India’s personal income tax structure, raising the...
The Goods and Services Tax (GST) is an indirect tax system introduced in India in 2017. It functions...
A trademark search is simply checking if another person or organization does not already own the...
Section 194H of the Income Tax Act in India mandates the deduction of Tax at Source (TDS) on commission or brokerage...
Section 80G Deduction is a facility available in the Income Tax Act which allows taxpayers to...
The Income Tax Department (ITD) has not provided specific guidance on crypto taxes for Indian investors. However...
Internal audit applicability is a critical concept for companies in India, impacting various...
In the business world, two main types of companies exist: private company and public company...
Ministry of Finance vide a Notification No 05/2022- Central Tax (Rate) dated 13.7.2022 has issued...
The Central Board of Indirect Taxes and Customs (CBIC) has recently announced an extension...
Depreciation is a key concept in finance and accounting. It helps us manage how the value of...
Form 10IA of the Income Tax Department must be filed by taxpayers claiming income tax deduction...
The Goods and Services Tax (GST) system in India has been a significant reform in the country's...
India's Gross Domestic Product (GDP) benefits significantly from the substantial...
The Finance Act, 2023 introduced the MSME 45-day payment rule under Section 43B(h) of the Income Tax Act...
The Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024, was announced by Union Finance Minister...