Iffco cover against vagaries of weather

Iffco Tokio, a general insurance firm, has launched 'Barish Bima Yojana', a new group insurance product covering farm produce against rain failure, company executives told reporters here on Monday.

Barish Bima Yojana was an index-based re-insurance driven product open to both farmers and the state co-operatives in the country. It covers lower crop yield due to failed or deficient monsoons.

The insurer will compare actual rainfall with a weighted normal figure to determine the extent of payout if any, Ajit Nambiar, managing director of the firm said. The insurance policies will be sold through cooperative societies, banks and some non-governmental organisations.

"We have conducted extensive research in the rural areas before launching the product and we are happy to say that we have got tremendous response from the farmers and the state co-operatives in India," Nair said.

The technical expertise of Tokio Marine in weather-related insurance products and that of Iffco in distributing products to farmers in India, will be leveraged in selling the latest product.

It was first launched as a pilot in nine districts in four states in India. The policy will now be available across 105 districts in seven states in India, a company release said.

Features in the policy include no follow ups from the farmers for their claims. They don't have to measure the actual crop yield at the end of the harvesting season.

Claims are settled on the basis of the amount of deficiency in rainfall as determined by Indian Meteorological Department in the relevant area, the release said.

Iffco Tokio is a joint venture promoted by the Indian Farmers Fertiliser Co-operative (IFFCO) and its associates and Tokio Marine and Nichido Fire, the largest insurance company in Japan. The Indian promoters hold 74 per cent of the Rs 100 crore equity capital in the joint venture.