Implementation of Coconut Palm Insurance Scheme Andhra Pradesh


Orders were issued permitting the Commissioner of Horticulture, Hyderabad for implementation of Coconut Palm Insurance Scheme in the entire State of Andhra Pradesh with 50% (Rs.5.00 lakhs) assistance by CDB, 25% (Rs.2.50 lakhs) by State Government share and 25% by farmers (Rs.2.50 lakhs) in an area of 1399 ha. instead of 5200 ha. Earlier proposed during the year 2011-12, in suppression of the earlier orders issued in G.O.Ms.51, A&C (Horti) Dept., dt.30.03.2011, strictly following the guidelines of Coconut Development Board.

The Chairman, Coconut Development Board has requested the Government to grant the administrative approval as well as to release State’s contribution towards premium.

The COH, Hyderabad has stated that, the CDB, GOI, Kochi has informed that, the Coconut Palm Insurance Scheme is being continued in the Andhra Pradesh during the current financial year 2012-13 also on the same terms and condition as in the last year. The scheme will be continued for the implementation in the state with a total outlay of Rs.20.00 lakhs. The share of CDB would be Rs.10.00 lakhs (50%) and the balance will have to be contributed by the State Government and the farmers @ 25% each. GOI has exempted from paying service tax on CPIS from this year onwards. As a result, the premium cost will come down from Rs.4.69 to 4.25 per plam (for the age group of 4th to 15th year) & from Rs.6.35 to Rs.5.75 per palm (for age group 16-60 years). The net premium cost for the farmer after Board & State Government subsidy will only be Rs.1.6 for first group and Rs.1.44 per palm for the second group and also the COH, Hyderabad has requested that, the Government may issue State level Administrative approval for implementation of coconut palm insurance scheme during 2012-13 in the State of Andhra Pradesh.

The main feature of the scheme is as follows:

Objectives:

i) Assist coconut growers in insuring coconut palms, against natural and other perils.
ii) Provide timely relief to farmers, who suffer income loss due to sudden death of palms.
iii) Minimize risk and encourage replanting and rejuvenation to make
coconut-farming remuneration.

Applicability:

a. The insurance scheme is applicable to all healthy nuts bearing coconut palm; grown
as mono or intercropped; on bunds farms or homestead.
b. To all varieties of coconut, Dwarf and Hybrids with age group of 4-60 years will be covered under the scheme.
c. Tall variety coconut palms will be eligible for coverage for age range of 7-60 years.
d. Un healthy and senile palms will be excluded from coverage.

Eligibility Criteria:

Individual farmer / grower offering at least 10 healthy nut bearing palms for insurance in specified age group (4-60 years for dwarf, hybrid and 7-60 years for tall) in contiguous area / plot will be eligible for insurance.

Scope of cover:

Insurance coverage is from 4th/7th year to 60th year and split into two age groups i.e. 4-15 years and 16-60 years, for fixing premium and sum insured.

Risks covered:

The scheme covers following perils leading to death/loss of palm or palm becoming unproductive:

i) Storm, hailstorm, cyclone, typhoon, tornado, heavy rains.
ii) Food and inundation. iii) Pest and diseases of widespread nature causing, irreparable damages to palm.
iv) Accidental fire, including forest fire and bush fire lightening.
v) Earth quake, landslide and tsunami
vi) Severe drought and consequential total loss.

The physical & financial target for 2012-13:
COCONUT PALM INSURANCE SCHEME BUDGET PROPOSED 2012-13
Andhra
Pradesh Physical Target (No. of Palms in lakhs Physical Target (Area in Ha Financial Target (Rs. in lakhs)
CDB Share State Govt Share(25%) Farmer Share (25%) Total Premium amount
3.64 2907 10.00 5.00 5.00 20.00
(125palms/Ha.)
Premium subsidy pattern:

• 50% Coconut Development Board
• 25% State Government
• 25% Farmers share

Insurance Term: Annual policies.

The procedure of insuring the palms, assessment of damage, claim assessment and settlement procedure and other issues shall be as per the operational modalities given by Agriculture Insurance Company of India Ltd

Role of State Government as per scheme:
• Wide publicity to the scheme.
• Motivation of farmers to enroll under the scheme.
• Assessment of extent of damage.

Government after examination of the proposal and hereby accord permission to the Commissioner of Horticulture, AP, Hyderabad for implementation of Coconut Palm Insurance Scheme in the entire State of Andhra Pradesh with 50% (Rs.10.00 lakhs) assistance by CDB, 25% (Rs.5.00 lakhs) by State Government share and 25% by farmers (Rs.5.00 lakhs) in an area of 2907 ha. during the current year 2012-13 strictly following the guidelines of Coconut Development Board.

Government have agreed to the above proposal in principle for the year 2012- 13 subject to condition that the share of farmers contribution is to be paid by farmers themselves.

The Commissioner of Horticulture, Hyderabad shall take further necessary action in the matter.

1. G.O.Ms.No.306, A & C (Hort.) Dept., dt.27.12.2011.

2.From the Chairman, Coconut Development Board,Kochi,    D.O.Lr.No.1539 2012Stat, dt.11.05.2012.

3.From the Commissioner of Horticulture, A.P.,Hyderabad, Lr.No.Spices 80/2012, dt.29.05.2012 & 30.06.2012.

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