Revenue Insurance Scheme for Plantation Crops (RISPC)

The Revenue Insurance Scheme for Plantation Crops (RISPC) is an initiative by the Department of Commerce designed to shield growers of tea, rubber, coffee, cardamom, and tobacco against the impacts of adverse weather conditions and price volatility. This scheme compensates income losses by leveraging a comprehensive crop insurance mechanism.

Coverage of the Scheme

The insurance premium subvention under RISPC is available to small growers of tea, rubber, coffee (Robusta and Arabia), tobacco, and cardamom with holdings of 10 hectares or less. The scheme exclusively covers mature standing crops.
For registered growers within the designated Commodity Boards (CBs) of pilot districts, participation in the scheme is mandatory to access benefits from other government initiatives. Loans can be secured through public financial institutions, including CBs. Participation is optional for other small growers, while large growers may join by paying the actuarial premium without subsidy eligibility.
The scheme initially covers eight selected districts across seven states, aiming to secure around 1.8 lakh small growers and encompassing an area coverage of approximately 2.10 lakh hectares.
Adhering to the 'Area Approach' principle, the scheme designates Insurance Units (IUs) such as villages, panchayats, or equivalent units with the collaboration of the Commodity Board and State Government.
Income loss due to yield loss or price fluctuation is covered. Yield loss arises from non-preventable risks like drought, floods, pest invasions, etc., while price fluctuations are based on a five-year average price comparison.
Risks from war, nuclear events, malicious damage, and preventable occurrences are excluded from coverage.

Summoning of Meeting

Two months before the crop season, meetings are convened by Commodity Boards and State Governments to finalize bid notices, terms, conditions, and designate insurance companies for the scheme's implementation.

Publicity

Promotional efforts include extensive media coverage, grower's fairs, exhibitions, and workshops in pilot districts to raise awareness. Collaboration among Commodity Boards, Insurance Companies, and State Governments ensures appropriate training and sensitization.

Provision of Yield

Commodity Boards provide five years of authentic yield and price data to insurance companies for indemnity and premium calculations. Where data is unavailable, substitute data is utilized. Yield estimates are refined with inputs from IASRI and NSSO. The insured sum is not less than 80% as determined by the concerned Commodity Board. Average income calculation is based on the past five years, subject to indemnity levels.

Rate of Insurance Premium

The premium cost-sharing splits into a 75:15:10 ratio among the Government of India, State Governments, and growers. Grower contributions increase if the State Government forgoes its share.

Circulation of Details

Commodity Boards and State Governments ensure the circulation of details regarding insured crops, coverage areas, premium rates, government subsidies, and seasonal guidelines. This information is disseminated digitally and archived on the websites of the involved authorities a month before the crop season begins.

Seasonability Discipline

- Submission of insurance proposals by growers through various channels, including banks and PACS.
- Consolidated proposals are sent from regional offices to the Commodity Boards or nodal banks.
- Commodity boards submit consolidated proposals to insurance companies.
- Yield and price data are provided by Commodity Boards to insurance companies.
- Legal claims are credited to growers' accounts, and insured growers' lists are publicly displayed and uploaded digitally.

Receiving Proposals

Designated agencies and banks receive grower proposals, while non-loanee growers benefit from services provided by IRDA-approved insurance intermediaries.

Disbursement

Substandard or disputed claims must be reported within three months of disbursement. All claims are settled within three weeks post-receipt of complete data from the Commodity Board, with date extensions considered by the board if necessary.

For more information on plantation crop insurance schemes, explore the RISPC overview or related schemes such as the Rainfall Insurance Scheme for Coffee and the Weather Based Crop Insurance Scheme. Additionally, learn about other agricultural protections through the National Agricultural Insurance Scheme.

Entrepreneurs and business-focused individuals can also look into the Insurance Scheme for Entrepreneurs, or for a broader insurance package, consider the Unified Package Insurance Scheme. Similarly, rural posts and target groups can dive into the Rural Postal Life Insurance Scheme for additional insights.

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Frequently Asked Questions

Common questions about Revenue Insurance Scheme for Plantation Crops Coverage.

The Revenue Insurance Scheme for Plantation Crops (RISPC) is a crop insurance scheme launched by the Department of Commerce to protect growers of tea, rubber, coffee, cardamom, and tobacco from risks of weather and price fluctuations that could lead to income loss due to a fall in domestic or international prices.

The insurance premium subvention under RISPC applies to small growers of tea, rubber, coffee (Robusta and Arabica), tobacco, and cardamom having 10 hectares or less landholding.

The scheme is compulsory for those growers registered with the concerned Commodity Boards (CBs) in the pilot districts or member growers to avail the benefits of other Government schemes through the said board. However, the project is optional for other small growers.

The scheme operates with the principle 'Area Approach' in certain districts. Commodity Boards along with the concerned State Government designate an area as an Insurance Unit (IU) that could be a village, village panchayat, or any equivalent unit.

The scheme covers income loss that arises from yield loss due to non-preventable risks such as drought, dry spells, inundation, flood, pest, diseases, landslides, lightning, storm, hailstorm, natural fire, cyclone, etc., as well as price fluctuations due to a fall in international or domestic prices below an average price of the last five years, excluding the current year.

The rate of insurance premium is shared by the Government of India, State Government, and growers in the ratio of 75:15:10. The share of premium by growers increases if the State Government in the area/region covered by the scheme does not contribute its premium share.

Adequate publicity is given in all villages of the pilot districts through electronic and print media, grower's fairs, exhibitions, SMS, short films, documentaries, etc. The Commodity Boards, along with Insurance Companies and the concerned State Government, organize training, workshops, and sensitization programs.

The sum insured for the crop is the average income of the past five years multiplied by the applicable indemnity level of that crop. The average income is calculated as the average yield (per hectare of the last 5 years) multiplied by the average price (Rs. per hectare of the last 5 years).

Commodity Boards play a crucial role in the implementation of the RISPC scheme. They provide historical yield and price data, finalize the issuance of bid notices, terms and conditions, designate insurance companies, provide seasonality discipline, submit price data/yield to insurance companies, and facilitate the overall implementation process.

All claims have to be settled within three weeks from the filing date of receipt of yield/price data from the Commodity Board. Disputed claims or substandard claims have to be informed to the Commodity Boards within three months of claim disbursement for consideration and decision.