Coconut Palm Insurance Scheme in Andhra Pradesh during 2015-16 1

Notification of National Crop Insurance Programme (NCIP) – Coconut Palm Insurance Scheme (CPIS) in Andhra Pradesh

Coconut Palm Insurance Scheme in Andhra Pradesh during 2015-16:

Ministry of Agriculture, the Government of India (GoI) vide communication No: 13015/02 2012-Credit-II, Dt. 1-11-2013 issued the administrative sanction for implementation of National Crop Insurance Programme (NCIP) in all the states and Union Territories of India with Coconut Palm Insurance Scheme (CPIS) as one component

Further Government of India has given approval for implementation of the Coconut Palm Insurance Scheme (CPIS) for the year 2015-16 vide their communication No: 13015/02 2012-Credit-II, Dt. 20-03-2015.

In the meeting of State Level Monitoring Committee on CPIS, Government of Andhra Pradesh held on 17-6-2015, the committee has decided to implement National Crop Insurance Programme (NCIP) – Coconut Palm Insurance Scheme in East Godavari, West Godavari, Srikakulam, Visakhapatnam, Vizianagaram and Chittoor districts of Andhra Pradesh during the year 2015-16.

The important details of the notification with respect to the CPIS are described below:

Implementing Agency

 CPIS will be implemented by Agricultural Insurance Company of India (AIC) which is the implementing agency for insurance programmes NAIS, MNAIS, CPIS and WBCIS in Andhra Pradesh.

Eligibility Criteria

As per the Scheme, individual farmer / grower offering at least 5 healthy nut bearing palms for insurance in specified age group, (4-60 years for dwarf, hybrid and 7-60 years for tall) contiguous area / plot will be eligible for insurance.


Healthy “Nut” bearing coconut palm varieties i.e., Tall, Dwarf and Hybrids grown can be covered.

  • Dwarf and Hybrid coconut palms in age range of 4 to 60 years and Tall variety coconut palms in age range of 7 to 60 years are eligible for coverage. Unhealthy and senile palms will be excluded from coverage.
  • Self-Declaration of age group by insured planter/grower in insurance proposal is acceptable. However, AIC may get the insured palms verified for authenticity, at any time and Insurance becomes void in the event of wrong declaration of age or any material fact by insured, concerning the Insurance.
    • The scheme covers following perils leading to death / loss of palm or palms becoming un-productive:
  • Storm, hailstorm, cyclone typhoon, tornado, heavy rains
  • Flood and inundation.
  • Pest and diseases of widespread nature causing, irreparable damages to palm.
  • Accidental fire, including forest fire and bush fire, lightening.
  • Earth quake, landslide and tsunami.
  • Severe drought and consequential total loss.
    • This Insurance policy pays for total loss of palm on account of happening of perils insured leading to death of insured palm or it’s becoming unproductive. In case, death of palm is not immediate, payment of sum insured will be payable on production of certificate from Coconut Development Board (CDB) / Horticulture Department justifying cause for declaring palm unproductive.  A palm can be declared ‘unproductive’ only when further growth / rejuvenation of palm is not possible after the same has been damaged by peril(s) insured, provided palm is removed. In case farmer/grower wishes to retain unproductive palm as it is (without felling), salvage value of 50% of sum insured will be deducted from claim.  Remaining case, loss of palm will have to be established to occurrence of peril insured.


  • No claims shall be payable under the scheme, if number of palms lost due to operation of peril insured i.e., within ‘Franchise’ clause as mentioned below. Insurer will not be liable for any payment, under this policy, for any expenses incurred by insured in connection with or in respect of loss other than on account of perils insured.  The insurance does not cover following events, in so far as they are applicable, keeping in view scope of insurance cover.
  • Loss by Theft, War, Invasion, Civil war, Rebellion, Revolution, Insurrection, Mutiny, Lock out, Malicious Damage, Conspiracy, Military/Usurped power, Civil commotion, Confiscation, Requisition/destruction/damage by order of any Government de-jure/de-facto/by any public/municipal/local authority including damage due to power transmission.
  • Nuclear reaction, nuclear radiation or radioactive contamination.
  • Impact damage due to aircraft or other falling objects.
  • Willful negligence of insured and any one acting on his behalf.
  • Damage caused by human, bird or any animal action.
  • [Improper maintenance of palms].
  • [Palm becoming unhealthy & senile].
  • Natural mortality of the palm, up-rooting of palm traceable to chiseling of roots.
  • Loss of capital investment like land cost loss or damage to structures supporting insured palm, irrigation system, agricultural equipment or implements.
  • The Sum Insured and premium under Coconut palm Insurance under different age groups will be follows:
          Coconut palm age in years Sum insured per palm          (Rs.)


Premium per plant/Year            (Rs.)
4th – 15th 900 9.00
16th – 60th 1750 14.00



On premium, 50% subsidy will be paid Coconut Development Board (CDB) and 25% by State Government concerned and balance 25% of the premium will be paid by farmer/grower:

Coconut Palm age in years Premium per plant/year               (Rs.) Farmers share @ 25%
4th – 15th 9.00 2.25
16th – 60th 14.00 3.50

In case some planters/growers association wishes to bear the premium on behalf of planters/growers such association may do so if they have “insurable interest”.  However, in any case, the planters/growers shall have to bear a minimum of 10% premium.

Premium subsidy amount (50% by CDB and 25% by State Government) will be released to AIC in advance based on estimates, which will be replenished/ adjusted on quarterly/ yearly basis.

  • Polices may be issued on annual basis. However, growers/farmers may obtain a policy for a maximum period of three years for which rebate in premium @ 7.5% for two year policy and 12.5% for three year policy will be provided to the planters/growers.

The premium break up for three years is as under.

Coconut Palm age in years Premium per plant/first year (Rs.) Farmers share @ 25% per palm Premium per plant /two years (Rs.) Farmers share @ 25% per palm Premium per plant/three years     (Rs.) Farmers share @25% per palm
4th -15th 9.00 2.25 16.65 4.16 23.63 5.90
16th–60th 14.00 3.50 25.90 6.48 36.75 9.19
  • Planters/growers can join the scheme any time during the year. However efforts should be made to insure all eligible farmers/growers by 31st  In case, farmers/growers join the scheme after 31st March, then the risk is covered from 1st day of succeeding month.

However, loss/death of palms, within 30 days from inception of Insurance, claim is not payable under the scheme, but this condition is not applicable in case of renewal of insurance before expiry of the policy ( i.e., without time gap)


The claim is assessed only if number of palms damaged, due to perils insured are in a contiguous area is more than the palms lost as shown for different slabs:

S.No. No. of Insured Palms in a contiguous area Franchise (Palms lost)
1 60-100 2
2 >100 3



Insurance may be obtained through Coconut Development Board (CDB), directly from representations/ authorized agents of AIC or nearest office of Horticulture Development or Coconut Producers/Growers Societies registered under Societies Act or registered with CDB.

Farmers/Grower who needs to insure his palms should submit the following documents to the CDB/Hort. Dept., as the case may be:

  • Proposal forms along with premium amount (by way of DD) (Annexure-I).
  • Proof of land record / Plantation or a certificate issued by revenue authorities to / CDB / Hort. Dept.,
  • Declaration by farmer that only healthy palms are insured in the proposal forms.
  • A rough sketch of the plantation with land identification number of each plot and number of palms therein.
  • Premium will be paid by planter/grower, net off premium subsidy, through bank draft, drawn in favour of “AIC of India Ltd A/c no.008010200023922 payable at Hyderabad.
  • Certificate of Insurance / cover note will be issued by AIC to all individual insured farmers/growers, within 30 days from the receipt of proposal, with requisition premium.
  • AIC shall also furnished a consolidated list of insure farmers/growers district wise to Coconut Development Board (CDB) and Department of Agriculture, GOI, on quarterly basis.
  • Loss of insured palms will be intimated by insured farmers / Growers to AIC within fifteen days from occurrence of peril, with all relevant details.
  • Farmers will not move or shift damaged/ lost palms till inspection of crop by loss assessors is complete.
  • Loss assessment certification is required to be furnished by Coconut Development Board (CDB) / Horticulture Department / State Agriculture
    University (SAU) as authorized by AIC for each district, justifying cause for loss of palm, within fifteen days from loss intimation.
  • AIC, at its discretion may send its representative to assess the loss jointly with the agency designated to certify the loss.
  • AIC will release claim to insured planter / grower within one month from date, all relevant certified details of claim are received in their office. Release of claim amount, however, is subject to receiving premium subsidy from CDB, and State Government.
  • Insurance ceases to operate once a full claim is paid.
  • AIC shall pay service charge to Horticulture Department @ 7.5% of the premium procured by them from the farmers/growers (i.e., on farmers share only).
  • Horticulture Department or State Agriculture University (SAU) who are involved in certification of losses may also be paid service charges at rate mutually agreed between concerned agency and AIC.
  • These service charges shall be shared equally between AIC and GoI/CDB.

             Roles and responsibilities of Central Government, State Government, Coconut Development Board and Agricultural Insurance Company of India Limited are as defined in the point number 16 of operational modalities of coconut palm insurance scheme (CPIS) under National crop Insurance programme for successful and a smooth implementation of the scheme


                   CPIS is exempted from payment of Service Tax.

G.O.RT.No. 65 Dated: 27-01-2016

  1. From the COH, A.P., Hyderabad, Lr.No. Fruits/18/2014, Dated:.13/08/2015.
  1. From the COH, A.P., Hyd, Lr.No. ITDM & Publicity /18/2014, dt.03.12.2015.
  1. From the COH, A.P., Hyd, Lr.No. ITDM & Publicity /18/2014, dt.20.01.2016

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