SESSION 58
BANKING & INSURANCE
Submitted by:
Prerna Chamaria 08D1169
Shipra Agarwal 08D1171
Urja Ojha 08D1172
Crop Insurance
Crop Insurance Scheme
This scheme is also known as the ‘Rashtriya Krishi
Bima Yojana’.
Came into existence from 22 June 1999.
Primary objective of the scheme is –
1. To provide a measure of financial support to farmers
in the event of crop failure due to drought, flood etc.
2. To restore credit eligibility of farmers after a crop
failure, for the next crop season.
3. To support and stimulate production of pulses and oil
seeds.
Features
Crops to be covered
Farmers to be covered
Risk covered against
Extensions of schemes
Sharing of risk
Area approach
Sum insured
Threshold yield of crop for ‘defined area’
Central crop insurance funds
To meet the catastrophic losses a Corpus Fund is created
with contribution from the Central Government and
State/ Union Territory on 50:50 basis.
Main Objectives
To receive crop insurance premium from financial
institutions and issue policy
To settle claim promptly
To notify crop-wise areas and premium rates well in
advance of the season
To maintain communication with financial institutions
Strengthen crop estimation survey machinery in order
to furnish accurate estimates
To keep excess of crop insurance charge over
indemnity claim in good crop years
State crop insurance funds
State government will set up the funds
Initial funds of 1-2 crore to be equally
contributed by the state government concerned
and the central government
Size of each state fund is decided in consultation
with the state government, ministry of finance
and ministry of agriculture of the central
government
Agricultural Pumpset Insurance
It applies to centrifugal and submersible pumpsets for
agricultural purpose only upto 25 HP
It indemnifies the insured against unforeseen and
sudden physical damage to the pumpsets caused by
fire or lightning, theft, mechanical or electrical break
down etc.
Minimum premium is Rs.50 for electric pumpsets and
Rs.70 for diesel pumpsets
Important exclusion
Normal wear and tear, gradual deterioration due to
atmosphere conditions or otherwise
Willful act or gross negligence of insured or his
representative
Loss or damage for which the manufacturer or supplier
is responsible either by law or under contract
Cost of dismantling transport to workshop and back, as
also cost of re-erection.
Horticulture/Plantation (Input) Insurance
This scheme is applicable to the following horticulture
and plantation crops:
a. Horticulture crops- grape, citrus, chikoo,
pomegranate and banana.
b. Plantation crops- rubber, eucalyptus, peepal,
teakwood, oil palm plantations, all types of trees,
sugarcane, tea, coffee and apple.
Period of insurance
Crop duration of twelve months (1 year) whichever is
shorter subject to the following:
a. This policy is valid for one season.
b. Period of insurance in case of sugarcane crop shall
be extendable from 12 months to 18 months.
c. In case of rubber, eucalyptus and other trees where
plants are first required to be raised in nurseries and
then fields, the period of insurance shall commence
after expiry of twelve months of transplanting.
Policy for these crops can be issued on annual basis.
Premium rates
Premium rates shall be charged for different insurable
crops at the following rates:
a. Horticulture crops- 5% of sum assured
b. Plantation crops- 1.25% of sum assured
c. Sugarcane- 1.25% of sum assured
d. Oil palm- Part A- 1.5% of sum assured
Part B- 2% of sum assured
Hut insurance- Individual
This scheme is applicable to dwelling huts in rural areas
constructed with financial aid from banks, cooperatives
and government institutions.
A maximum of 200 huts situated in one contiguous area
are covered under this plan.
It indemnifies the insured against all accidental losses or
damages
Under this policy the maximum sum assured is Rs.6000
Minimum premium is Rs.15 per policy
This applies only in cases where individual huts are
covered
Hut Insurance-Group
This policy indemnifies the insured against all accidental
losses or damages due to fire, lightning, storm, flood etc.
SALIENT FEATURES:-
1. This group cover is given to state governments only in
respect of huts/semi-rural areas of the state provided
all huts are covered.
2. The amount of sum assured should not be more than
Rs.5000 for fire and allied perils.
3. The premium rate is Rs.3 per mille p.a.
4. 50% of the premium shared by the government
5. The total aggregate claim amount shall be limited to (a)
Rs.2 crore per event and (b) Rs.10 crore in any one year
during the currency of the policy.
6. For ordinary claims the State Government may nominate
claim enquiry cum settlement officer.
7. For major claims- the insurer will constitute a task force to
survey and assess major floods and fire claims.
8. The hut insurance business will be shared by the leader
and other companies in the ratio of 40:20:20:20.
9. The scheme provides compensation not exceeding Rs.
1000 for a hut and Rs. 500 for belonging therein the entire
premium cost is being borne by the Central Government.
CARGO AND HULL INSURANCE
CARGO INSURANCE
Cargo insurance covers physical damage to, or loss of
goods whilst in transit and offers considerable opportunities
and cost advantages
The policy is meant to indemnify the policy holder
It includes cover for the land transit commencing from the
moment the goods leave the storage until they arrive at the
final warehouse.
NEED OF CARGO INSURANCE
The insurance cost is legitimately passed on to the
customer, who also gets the benefit of the insurance
This virtually amounts to free insurance which the
exporter controls.
Many foreign buyers see this as essential service
provided by the exporter
Exporters who do not provide a 'package' which
includes insurance, can lose business to competitors
who do.
CLASSES OF CARGO
INSURANCE
Cargo insurance is usually provided by the means of
one of three Institute Cargo Clauses-
I. Clause A
II. Clause B
III. Clause C
TYPES OF CARGO INSURANCE
1) Open Cover
2) Specific (Voyage) policy
3) Contingency (seller’s interest)
Insurance
PARTIES PROVIDING IT
Insurance company, or some freight forwarders
Other trade service intermediaries
Bank will offer cargo insurance as part of a trade
finance package
Specialist cargo insurance broker
BENEFITS
More and more companies recognise the long term
advantage of buying cargo insurance in the
If one is a small or medium sized trader you need to look
more closely at this area of your international trading
operations.
One could reap benefits for your business through
enhanced protection of your interests, improved
international trade administration, better trading
relationships and increased competitiveness, resulting
in greater profitability.
HULL INSURANCE
Is the coverage of the machine that usually pertains to
chances of physical loss or damage to the carrier
It can be of various types
1. Marine Hull Insurance
2. Aircraft Hull Insurance
3. Motor Hull Insurance
Exceptions
HEALTH INSURANCE
MEANING
Insurance against loss by illness or bodily injury. Health
insurance provides coverage for medicine, visits to the
doctor or emergency room, hospital stays and other medical
expenses. Policies differ in what they cover, the size of the
deductible and/or co-payment, limits of coverage and the
options for treatment available to the policyholder. Health
insurance can be directly purchased by an individual, or it
may be provided through an employer.
Types of Policies
Individual Mediclaim Policy
Group Mediclaim policy
Jan Arogya Bima Policy
Cancer policy
Bhavishya Arogya Policy
Overseas Medical Policy
Videsh Yatra Mitra Policy
Miscellaneous Insurance
Personal Accident Insurance
A contract of personal accident insurance is a contract
whereby a sum of money is secured to the assured or
his legal representative in the event of his disablement
or death by accident. It is a contract against injury or
death resulting from accident.
RATING
The rate of premium charged depends mainly on the type
of cover desired and the insured person’s occupation.
This is non-tariff business.
CLAIMS
For the settlement of insurance claims under
personal Accident Insurance, the following
procedure is required to be adopted:-
Submit claim form along with other documents
Investigation of relevant facts and necessary
documents
Sent for approval of claim
Insurance company determines the extent of its
liability and the loss is indemnified.
THANK YOU