Agriculture Insurance Company of India Ltd

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About Agriculture Insurance Company of India Ltd



The Agriculture Insurance Company of India Ltd has been formed under the aegis of the Government of India. As stated in the union budget speech for 2002-03 the main aim behind its establishment was to assist the farmers and create an actuarial regime that was sustainable.

At present the organization is responsible for implementing the National Agricultural Insurance Scheme, which, till its inception, was being handled by the General Insurance Corporation of India.

The company's paid-up share capital amounts to INR 200 crores and it has authorized share capital worth INR 1500 crores. Its shareholding pattern may be mentioned as below:

Promoters Percentage of shares held
General Insurance Corporation of India 35%
New India Assurance Company Limited 8.75%
National Bank for Agriculture and Rural Development (NABARD) 30%
Oriental Insurance Company Limited 8.75%
National Insurance Company Limited 8.75%
United India Insurance Company Limited 8.75%


The organization was incorporated on December 20, 2002 and started operations on April 1, 2003.

Agriculture Insurance Company of India Ltd Business Profile



The following table lists various important business details of Agriculture Insurance Company:
State/union territory Amount of farmers covered (in thousands) Area under insurance (in thousand hectares) Sum insured (in INR crores) Gross premium (in INR crores) Premium subsidy (in INR crores) Claims (in INR crores) Amount of farmers helped (in thousands)
Andhra Pradesh 26532 40899 48728` 1410 131 4106 5998
Maharashtra 30113 26118 17889 694 92 1898 9760
Assam 252 195 399 11 1 10 39
Manipur 14 15 40 1 0.08 3 14
Andaman and Nicobar Islands 2 3 3 0.07 0.03 0.033 0.11
Meghalaya 26 28 40 2 0.31 0.47 3
Bihar 6025 7359 11867 303 27 2318 2424
Mizoram 0.121 0.134 0.232 0.006 0.001 0.112 0.119
Chhattisgarh 8591 17540 8225 210 11 377 1647
Odisha 12857 12776 15960 400 47 681 1972
Goa 8 13 3 0.05 0.012 0.024 1
Puducherry 32 46 72 1 0.34 2 6
Gujarat 12089 27960 29152 1136 56 3918 3750
Rajasthan 15059 31380 16203 458 7 2622 5201
Haryana 598 695 681 21 0.63 35 119
Sikkim 2 1 2 0.025 0.004 0.013 0.086
Himachal Pradesh 262 197 322 7 3 17 104
Tamil Nadu 4391 5869 10948 266 127 1494 1634
Jammu and Kashmir 31 44 34 0.68 0.05 1 4
Tripura 18 11 25 0.72 0.08 0.013 0.086
Jharkhand 5616 3207 2772 70 4 511 2108
Uttar Pradesh 19782 26698 24902 514 42 983 4136
Karnataka 11490 18745 14038 429 23 1637 4421
Uttarakhand 330 314 690 16 1 41 116
Kerala 394 343 626 13 2 25 75
West Bengal 9861 5009 9646 414 140 897 2078
Madhya Pradesh 23238 58413 31413 927 31 1593 4474


Agriculture Insurance Company of India Ltd Balance Sheet



The following table represents various aspects of the balance sheet of Agriculture Insurance Company of India for the year that ended on March 31, 2012:

Areas Figures in INR thousands
Gross premium written 25768510
Net premium income 13202136
Net income from investments 1488722
Total income 14690858
Commissions 2461463
Operating profit/loss 6482998
Net total income under shareholder's account 962448
Profit before tax 7445446
Profit after tax 5021287
Total funds in policyholders' account 18285876
Total investments in policyholders' account 17213977
Total funds in shareholders' account 13959013
Total investments in shareholders' account 15023513
Net worth 13959013
Total assets 38023578


Agriculture Insurance Company of India Ltd- Management Team



The Chairman-cum-Managing Director of Agriculture Insurance Company is Milind Anna Kharat. He is the chief member of the organization's board of directors that also comprises the following:
  • RK Tiwari
  • SK Mitra
  • Mukesh Khullar
  • Kuldip Singh
  • Sheshank Saxena
  • RK Deka
  • KN Bhandari
  • SK Chanana
  • Gopal Naik
  • PJ Joseph
  • PK Bhagat

Agriculture Insurance Company of India Ltd- Products



Following are the present products of the Agriculture Insurance Company:
  • National Agricultural Insurance Scheme
  • Potato Crop Insurance
  • WBCIS - Weather Based Crop Insurance Scheme
  • PulpWood Tree Insurance Policy
  • MNAIS - Modified National Agricultural Insurance Scheme
  • RainFall Insurance Scheme For Coffee (RISC) - 2011
  • Bio - Fuel Tree / Plant Insurance
  • Rubber Plantation Insurance
  • Cardamom Plant & Yield Insurance
  • Varsha Bima / RainFall Insurance
  • Coconut Palm Insurance Scheme (CPIS)
  • Weather Insurance (RABI)

The organization is planning to bring out these products in the future:

  • Sugarcane Insurance
  • Aromatic and Medicinal Plants Insurance
  • Tea Insurance
  • Contract Farming Insurance
  • Basmati Rice Insurance

Agriculture Insurance Company of India Ltd News



Of late the agricultural sector of Haryana has been facing critical problems like shortage in rainfall and so the state government has decided to avail the following insurance programs to safeguard the paddy farmers' interests:

  • Modified National Agriculture Insurance Scheme (MNAIS)
  • Weather Based Crop Insurance Scheme (WBCIS)
These insurance plans have been formulated by the national government and will be executed by various general insurers. The WBICS program will cover blocks of 12 districts each and the MNAIS plan will account for blocks of 4 districts each.

The premiums of these policies have already been subsidized by the national and state governments and the farmers will only need to pay some basic fees.

The Agriculture Insurance Company is one of the organizations who have been entrusted with the responsibility of executing the WBCIS plan in Haryana. The other companies are as following:

  • ICICI Lombard
  • HDFC Ergo
  • IFFCO Tokio
  • Cholamandalam MS
The following blocks and more will be covered under the program:

  • Ambala II (Ambala)
  • Bilaspur (Yamunanagar)
  • Gohana (Sonepat)
  • Beri (Kurukshetra)

The policies would cover critical risks such as continued drought and inadequate rainfall. The Agriculture Insurance Company will also be implementing the MNAIS program.

Senior officers in the organization have stated that when the two policies are executed the farmers would be in a better position to deal with the risks related to agricultural production.

They feel that with these programs their income will be consistent as well especially in times when crop fails due to natural disasters.

The policies will also cover crop failure due to diseases and pests.

Agriculture Insurance Company of India Contact Details



Following is the contact information of the insurer:

Agriculture Insurance Company of India Ltd
Registered Office - 13th Floor, Ambadeep Building, 14, Kasturba Gandhi Marg,
New Delhi - 110 001, INDIA

Landline Numbers - (+91 11) 46869800
Fax Number - (+91 11) 46869815
E-mail address - aicho@aicofindia.com

Appointed Actuary - Shri S. Chidambaram (e-mail address aicactuary@aicofindia.com)

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