- First private sector general insurance company to be given mandate for pilot project for weather based crop insurance of wheat for farmers in Haryana
- Covers risk of high temperature and excess rainfall which can affect the produce of wheat cultivators
- At a premium amount of as low as Rs. 248 per acre, the farmer gets coverage upto Rs. 15,000 per acre.
- Claims settlement process is transparent and quick, as claims are automatically calculated based on the certified data received from independent third party bodies such as IMD and NCMSL
ICICI Lombard General Insurance Company Ltd., the country’s largest private sector General Insurance Company, is the first private sector general insurance company to be given mandate for weather based crop insurance of wheat for farmers in Haryana. The scheme offers opportunity to cover losses caused by adverse weather conditions.
This weather based insurance of wheat has been taken up as a pilot project in Ambala II block of Ambala district. The Government of Haryana has made it mandatory for the farmers who have taken loans, to take this weather based insurance cover. The scheme covers risk of high temperature and excess rainfall which can affect the produce of wheat cultivators.
Under this scheme, of the total premium of Rs. 1158 per acre of land, government (Central Government and Govt. of Haryana) pays subsidy of Rs. 910 and the farmer has to pay only Rs. 248. At a premium amount of as low as Rs. 248 per acre, the farmer gets coverage of upto Rs. 15,000 per acre.
The claim settlement is a hassle-free process, as the beneficiary is not required to file a claim for loss to receive a payout. Instead ICICI Lombard will compensate the beneficiary at the end of the crop season for any deviations from the normal conditions on the basis of the certified data collected from independent third party bodies such as Indian Metrological Department (IMD) and National Collateral Management Services (NCMSL). This transparent and objective method of claim settlement, removes the need for carrying out field surveys.
Weather based crop insurance, which is an index based insurance product pioneered by ICICI Lombard in India in the year 2003-04, is now successfully running in14 states comprising of 64 districts covering as many as 26 variety of crops. ICICI Lombard has extended weather insurance benefits to more than 5 lakh farmers across India and insuring 14 lakh acres of land. In the loanee segment of farmers, particulary large area of land is covered under this scheme in 6 states of Karnataka, Rajasthan, Bihar, Tamil Nadu, Madhya Pradesh and Haryana. In 2009, ICICI Lombard received the 'Golden Peacock Eco-Innovation Award - 2009' for the technological innovation in the claim settlement process for weather insurance products
According to Mr. Dilip Jashnani, Head – Financial Inclusion Solutions Group, ICICI Lombard GIC Ltd, “Wheat is the main Rabi crop of Haryana and it has not been brought under the umbrella of any crop insurance program so far in the state. We consider it to be our privilege to have been chosen to insure the crop against adverse weather conditions. For the convenience of the farmers, special care has been taken to incorporate a simple and transparent claim process”
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About ICICI Lombard General Insurance Company Ltd.
ICICI Lombard GIC Ltd. is a 74:26 joint venture between ICICI Bank Limited, India’s second largest bank with USD 75 billion in assets and Fairfax Financial Holdings Limited, a Canada based USD 27 billion diversified financial services company engaged in general insurance, reinsurance, insurance claims management and investment management.
ICICI Lombard GIC Ltd. is the largest private sector general insurance company in India with a Gross Written Premium (GWP) of Rs. 37,492 million for the year ended March 31, 2009. As on February 28, 2010, the company has 4,640 employees and 359 branches. In the financial year ended March 31, 2009, the company issued over 4 million policies and serviced over 33 lakh claims. The company has a claim disposal ratio of 97% (percentage of claims) settled against claims reported) as on March 31, 2009.
The company has been assigned a domestic rating of ‘iAAA’ by ICRA (an associate of Moody’s Investors Service) for highest claim paying ability and a fundamentally strong position, for the fourth consecutive year. ICICI Lombard Auto Insurance has been rated highest in customer satisfaction by J.D. Power Asia Pacific in India among 11 auto insurance providers. The company has been conferred the Golden Peacock- Eco Innovation Award of 2009 for weather insurance and the Customer and Brand Loyalty award in the “Insurance Sector - Non-Life” at the 3rd Loyalty awards, 2010. It was awarded the ‘General Insurance Company of the Year’ at the 11th Asia Insurance Industry Awards. The company also won the NDTV Profit Business Leadership Award 2007 and was adjudged as the most Customer Responsive Company in the Insurance category at the Economic Times Avaya GlobalConnect Customer Responsiveness Award 2006. It has the Gold Shield for “Excellence in Financial Reporting” by the ICAI (Institute of Chartered Accountants of India) for the year ended March 31, 2006.
ICICI Lombard allows instant policy issuance and renewal through its website www.icicilombard.com for all retail insurance products including Car Insurance, Health Insurance, Travel Insurance, Two Wheeler Insurance and Home Insurance. There are multiple payment options available including internet banking, credit card, debit card and cash card.
For more details about the company, log on to the website www.icicilombard.com