IFFCO-Tokio introduces weather insurance in state

The Indian Farmers Fertiliser Co-operative Ltd (IFFCO)-Tokio General Insurance, a company providing insurance scheme to farmers, has announced a special weather insurance scheme to protect farmers from the vagaries of the weather here on Saturday.

The 'Barish Bima Yojana' enables the farmers to insure their crops and avoid losses during shortage of rainfall.

N K Kedia, executive director, marketing - of IFFCO-Tokio said, "The product has been launched keeping in view the fact that Indian economy is an agrarian economy with over two-third of the country's population being dependent on agriculture for livelihood. Farmers cultivating 70 per cent of total cultivated area of India are dependent on rainfall for their water requirements as there are no assured alternative sources of irrigation."

A unique feature of the Barish Bima Yojna is its claim settlement process. The farmer doesn't have to follow up for the claim neither does he have to prove the actual loss to crop on account of deficiency in rainfall.

The sum insured is based on the area of land under cultivation and the kind of crop being cultivated, added Kedia.

"Our weather insurance policy will be operative for four months of Kharif season starting from June 1 and would help farmers a great deal in withstanding the risk and uncertainties arising from dependence on weather and further this policy is not linked to declaration or non-declaration of drought by the government," said Pawan Mediratta, head of Gujarat operations - IFFCO-Tokio.

He added that for the purpose of convenience, IFFCO-Tokio has taken the onus of informing the insured for any triggering of claim.

IFFCO-Tokio will souce the actual rainfall data for the subject areas for the monsoon months on periodical basis from the met department.

At the end of the monsoon period, this rainfall data will be collated for the purpose of calculation of deficiency and determination of claim. In case of any claim, IFFCO-Tokio shall inform the insured directly and all he has to do is to submit the filled up claim form.

N P Patel, vice-chairman - IFFCO, R K Dhami, vice-chairman - KRIBHCO and Jairam Patel, chairman, Gujarat State Co-operative Bank Ltd were present during the launch.