Expectations from the Insurance Industry

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
1
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
2
Crop Insurance
Evolution over the years

4. Company Confidential hdfcergo.com
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
3
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
5
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
6
Crop Insurance
PMFBY : Our perspective about the future

8. HDFC ERGO General Insurance Company Limited
Thank you
7