This document summarizes HDFC ERGO's crop insurance policies and the evolution of crop insurance in India. It discusses: - Coverage for crop losses due to weather conditions and insured amounts based on loan amounts or cultivation costs. - Types of crop insurance including yield-based and weather-based policies. - Key features like government subsidies, mandatory coverage for loan recipients, and voluntary coverage for others. - The history of crop insurance in India from 1972 to the present, culminating in the Pradhan Mantri Fasal Bima Yojana launched in 2016.

1. HDFC ERGO General Insurance Company Limited
Crop Insurance:
HDFC ERGO GIC LTD

2. Company Confidential hdfcergo.com
Coverage
• Covers crop losses
due to aberrant
weather conditions
like deficit rainfall,
excess rainfall,
high/low temperature
• Sum Insured is the
loan sanctioned
amount/cost of
cultivation
Types
• Yield based crop
insurance covers
crop losses based on
actual yield
estimation
• Weather Based crop
insurances covers
crop losses based on
the actual weather
data procured for
specified perils
Features
• Area approach basis
• Substantially,
subsidized by Govt to
make it affordable to
farmers
• Loanee farmers are
covered mandatorily
and non loanee
farmers voluntarily
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Crop Insurance
A key inclusion objective of Government running since 1972

3. Company Confidential hdfcergo.com
1965-1972
• GIC launched 1st ever crop insurance scheme in 1972 in 5 states
• Yield based cover
1972-1999
• Comprehensive crop insurance scheme launched in 1985 in 15 states
• Yield based, with two third risk sharing by Government
1999 -2007
• Agriculture Insurance Company (AIC) was formed and National Agriculture
Insurance Scheme(NAIS) launched
• Yield based and area approach
• Claim liability beyond 100% shared by Govt
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Crop Insurance
Evolution over the years

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2007-2009
• Pilot WBCIS(Weather Based Crop Insurance Scheme) launched
• Area approach, premium subsidy and claim liability with insurance company
• Private insurers allowed to participate
2009-2015
• WBCIS and MNAIS became full fledged scheme under (National Crop
Insurance Program) NCIP in 2013
• Area approach, premium based subsidy and claim liability with insurance
company
2016>
• Pradhan Mantri Fasal Bima Yojana (PMFBY)- the flagship agri inclusion
scheme of the current Government launched
• Improved amalgamation of existing crop insurance schemes
• 16 implementing agencies allowed including 11 private players
• One scheme for the entire country, marked improvements both for insured
and insurers
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Crop Insurance
National Crop Insurance Program Emerges: Directional shift from claim
subsidy mechanism to insurance solution

5. Company Confidential hdfcergo.com
 Scheme based on core contours of yield based crop insurance scheme
with some additional coverage
 NAIS and MNAIS redrafted to bring in improvements from farmers perspective
 Only crop insurance scheme to be implemented in the country, thereby
expanding the universe of crop insurance
 All existing schemes folded under PMFBY, save for weather based niche schemes
 Focus on making the scheme more affordable to the farmers
 Enhancement of level of premium subsidy up to 90%
 Comprehensive coverage solutions
 Focus on making the scheme a sustainable insurance solution
 Complete shift from loss subsidy plan to an actuarially designed
insurance scheme
 Use of technology for crop yield estimations, minimising
discrepancies in yield estimations
 Involvement of insurance companies in yield estimations
 Use of Mobile phones for capturing crop cutting data
 Usage of remote sensing & drone based imagery for claim settlements
4
Crop Insurance
PMFBY-a new dimension to crop insurance : An effort to make scheme more
beneficial as well as sustainable

6. Company Confidential hdfcergo.com
 Scheme expected to stabilise over the next couple of years
 One scheme for the entire country
 Targeted penetration of 50% expected to achieve in next 2 years
 Larger time window for coverage
 Early issuance of notification
 Time window of 2-3 months for coverage of loanee and non loanee farmers
 Defined guidelines for claim settlement
 Water tight guidelines for settlement of claims under the provisions of localised
risks, mid season adversity and post harvest losses with key deliverables from each
stakeholders
 Strong push on customer awareness programme
 Large scale mass marketing programme involving press releases, press ad, Radio
ad, TV ad, brochures, pamflets, posters, banners, wall paintings etc
 Involvement of District administrations(DM, District and Block agriculture officers),
State Govt along with Insurance companies)
 Conducting district/block level seminars/workshops, bankers training , local level
farmers meeting
 Special focus on coverage of non loanee farmers
 Multi channels points for increasing the coverage
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Crop Insurance
PMFBY : Our perspective about the future

7. Company Confidential hdfcergo.com
 System based booking and MIS reporting
 100% Uploading of individual farmer list in crop insurance portal by banks replacing
the manual farmer list reducing the timeline for bankers
 Crop Insurance portal providing compete details of Notification
 System based flow of coverage data from crop insurance portal
 System based acknowlgement copy provided to farmers
 Direct access of crop insurance portal to non loanee farmers for taking policy
 List of individual farmers and beneficiaries details are uploaded in Company
websites
 Provision of multi-year allotment
 Provides chance to insurers to diversify portfolio over the years in a State
 Setting up of infrastructure to service farmers covered under the scheme
 Tech based claims management
 Development of CCE app for CCE monitoring
 Direct flow of CCE data to server from the ground with geo stamping reducing timeline of
data flow and improves transparency
 Usage of satellite based/ drone based study for settlement of claims under localised
risks and mid season adversity
 Usage of satellite based images for crop area estimation to remove area
discrepancy
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Crop Insurance
PMFBY : Our perspective about the future

8. HDFC ERGO General Insurance Company Limited
Thank you
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