Iffco-Tokio launches Rajasthan rural policy

IFFCO-TOKIO General Insurance Co Ltd (ITGI), a leading player in general insurance, has announced the launch of 'Barish Bima Yojana' (BBY), a weather insurance policy for the rural areas of Rajasthan.

The new policy provides insurance cover to farmers against damage to crops due to deficiency in rainfall. This will be available in surrounding areas of 30 weather stations across the districts of Jhunjhunu, Sikar, Jaipur, Hanumangarh, Chittorgarh and Ganganagar.

Distributing the first few policies to farmers here, Surinder Kumar Jakhar, IFFCO chairman said, "We are proud of our association with ITGI. Their vision and initiatives have supported us in our endeavour to raise the standards of the Indian farmer. We hope to continue working together to provide new value added products customised for the Indian market."

K. Srinivas Gowda, ITGI chairman said, "Barish Bima Yojna aims to secure the livelihood of Indian farmers by reducing the risk and uncertainties arising from dependence on weather which perceives to be the biggest problem facing them. Our endeavour is to serve the farmers with better products and services to ensure that they are protected from risks of any kind."

Talking about the importance of the policy , Mr. Ajit Narain, managing director and CEO of ITGI said, "The BBY policy has received tremendous response from the farmers and state co-operatives across India. In 2005 - 06, it touched the lives of 16,430 farmers by a sale of 1,231 policies, a sharp rise from 3, 237 farmers and 75 number of policies in 2004-05, when it was launched under a pilot project. We hope to get the same response from Rajasthan as well, considering the state is rainfall deficit."

BBY is an index based reinsurance driven product that caters to the needs of the farmers as well as the state co-operatives in India.

The policy provides cover for anticipated deficiency in crop yield due to deficient rainfall during the monsoon months (June-September). At the end of the policy period, the weighted actual rainfall is compared to the weighted normal rainfall and the graded claim payout is made as per claim payout table.

The policy is sold as a group policy through co-operative societies and banks.

ITGI is a joint venture promoted by IFFCO, its associates and the Tokio Marine and Nichido Fire, one of the largest insurance company in Japan.

The technical expertise of Tokio Marine in weather products and IFFCO's commitment for farmers had led to the inception of ITGI's BBI. The Indian promoter's contribution is 74 per cent, while Tokio Marine has contributed 26 per cent.

The policy was launched last year in 6 states across India successfully. The new policy has various unique features and benefits such as its claim settlement process.

The farmers are not required to follow up for the claim and measure the actual crop yield at the end of the harvesting season.