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million) Small size of farm-holdings (Average size of 1.3 hectare) Inaccessibility of Farm-holdings Low value per unit Large variety of crops, varied agro-climatic conditions and package of practices Difficulty in collection of small amount of premium from large number of farmers Simultaneous harvesting of crops all over the country Prohibitive cost of Manpower and Infrastructure
Size < 1 ha. 1-2 ha. 2-4 ha. 4-10 ha. >10 ha.
Product Benchmarking
Data Calibration
Scope limited to Parametric Weather Climate Change & Seasonal Forecasts Weather Cycles
WBCIS features
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Available to all States All crops can be covered All farmers can be covered Compulsory for loanee (sanctioned credit limit), optional for others Sum insured based on cost of cultivation, usually predefined. Not less than 50% of defined SI. Premium rates are actuarial (max. 10% for kharif, 8% for rabi for food crops; others 12%) Farmers pay premium at same rate as under NAIS (for Food crops i.e. 2.5 3.5% Kh; 1.5-2.0 Rb)), for others max. 6%. Subsidy upto 75%, (diff between actuarial & farmer premium) shared equally by Centre & State Parameters covered : rainfall, RH, temp, Wind speed, Sun shine hours Risk period : Sowing to harvesting
WBCIS features
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contd.
Reference Weather Station: An AWS installed in the area to which the RUA shall be attached.
Reference Unit Area : Area attached to a RWS whose claims shall be settled on the basis of weather data recorded at the RWS.
Bach up weather Station : Claims solely on the basis of weather data recorded at RWS. Claims usually paid within 45 days from risk period subject to availability of subsidy by Government Claims fully borne by AIC ADD ON Cover for hailstorm & cloudburst Shimla (Apple) & Nasik (Grapes) Individual farm assessment
1 A. RAINFALL VOLUME
PERIOD DAILY RAINFALL TRIGGER (>) EXIT (mm) Payout (Rs. / mm) Max. Payout TOTAL PAYOUT (Rs.)
Note: Franchise of
TOTAL SUM INSURED (Rs.) 15000 PREMIUM (Rs.) 1500 PREMIUM % 10.00% 3.3% of the sum insured shall be apllicable, i.e., total claims of less than Rs.500
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Note: Total payout under this cover shall be capped at INR 11,250 per hectare or INR 4,500 per Acre Continued in Next slide .
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20.0
30.0 40.0 50.0 60.0
0.0
0.0 0.0 0.0 0.0
0.0
0.0 0.0 0.0 0.0
7.0
15.0 20.0 25.0 30.0
5.0
10.0 12.0 15.0 20.0
3.0
5.0 7.0 10.0 10.0
3.0
5.0 6.0 7.0 10.0
Note: Total payout under this cover shall be capped at INR 6,750 per hectare or INR 2,700 per Acre -----------------------------------------------------------------------------------------------------------------------------------------------COVER 3: Frost Cover Objective : To cover anticipated yield loss in the event of frost Cover period : 1st December to 31st January Event Definition : Temperature of 1C or below consecutively for 3 or more number of days Event Duration (no. of days) Payout (% of Sum Insured)
3 10
4 15
5 20
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Product Illustration
Definition: Aggregate of rainfall over Period/Phase Illustration: Consider an example Cover Period: 16-July to 31-August Crop: Paddy
Phase-I
16-Jul to 31-Jul
Phase-II
01-Aug to 15Aug 50 mm 20 mm
Phase-III
16-Aug to 31Aug 60 mm 20 mm
35 mm 10 mm
Rainfall Volume
STRIKE II (<) EXIT RATE I (Rs/mm) RATE II (Rs/mm) MAXIMUM PAYOUT (`)
mm
0 mm
20.00 57.50 1750
mm
4750.00
If, aggregate rainfall during Phase-I = 08 mm. A payout will trigger as 8 mm is less than strike-I as well as strike-II of phase-I The payout would be : (10 - 8) X 100 + (35 - 10) X 20 i.e. Rs 700.00. If, aggregate rainfall during Phase-II is 30 mm. A payout will trigger because 30 mm is less than strike-I of the phase-II The payout would be (50 - 30) X 20 i.e. Rs 400.00.
Product Illustration
Definition: Maximum of 2 consecutive days cumulative rainfall in respective Phases. Illustration: Consider an example Cover Period: 01-July to 15-August.
Crop: Paddy
Period/Phase
Phase-I
01-Jul to 15-Jul
Phase-II
16-Jul to 31-Jul 110 mm 250 mm 7.14 1000
Phase-III
01-Aug to 15Aug 125 mm 250 mm 10.00 1250
3000
If, in any 2 Consecutive days cumulative rainfall is 150 mm (85+65=150 mm), This is greater than Strike for the phase i.e. 90 mm. So, payout for this Phase will be calculated as (150 - 90) X 7.50 i.e. Rs 450.00. Similarly, in phase-II any 2 Consecutive days cumulative rainfall is 210 mm , This is greater than Strike for the phase. The payout for this Phase will be calculated as (210 - 110) X 7.14 i.e. Rs 714.00. In this way total payout under this cover will be Rs 450+714 which is equal to Rs 1164.00.
WBCIS: Performance
Lakh Rs. Season Kharif 2007 Kharif 2008 Kharif 2009 Kharif 2010 Kharif 2011 Kharif 2012 Rabi 2007-08 Rabi 2008-09 Rabi 2009-10 Rabi 2010-11 Rabi 2011-12 Overall SUMINSURED PREMIUM CLAIMS Ratio % 5301.00 703.08 524.12 74.55 31313.05 3168.04 1439.83 45.45 198930.99 19902.79 15314.67 76.95 443617.74 46057.52 15009.02 32.59 834181.40 83701.81 35395.57 42.29 723930.83 72640.33 47303.56 65.12 170495.11 13845.15 9891.70 71.45 42244.20 3559.55 2610.97 73.35 197636.40 16076.43 13790.07 85.78 524668.32 42756.08 28888.11 67.56 669468.05 55741.28 58070.73 104.18 3841787.09 358152.06 228238.33 63.73
Bihar
Paddy, Maize
Haryana
Paddy
West Bengal
Ladies finger, Chilly, cauliflower, Brinja, banana, Bitter gourd & other cucurbits, Marigild, Tomato, Tuberose, papaya, Betel leaf, guava & pineapple
Rajasthan
Bajra, Jowar, Maize, Greengram, Moth, Blackgram, Guar, Sesame, Castor, Groundnut & Cotton
Uttarakhand
Uttar Pradesh
Tomato, Ginger & Potato Pithoragarh, Bageshwar, Champawat, Dehradun, Tihri Garhwal, Pauri Garhwal & Rudra Prayag Paddy, Maize, Bajra, Faizabad Redgram, Blackgram,
Not a substitute for Area Yield Insurance, but a complementary Good crop husbandry practices & agro-meteorological adaptation could be the key for maximizing efficiency of Weather insurance contracts Most suited:
- (iii) perennial crops (usually age-group wise yield estimates are unavailable) - (iv) for crops / areas facing problems of asymmetric information; - (ii) as an index to give an early payout under Area Yield Insurance; - (v) crops experiencing huge time trend in yields;
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L/NL
Farmer type Farmers covered Premium Claim Farmers benefitted % of total
Loanee
20661104
342015
216695
11298857
95%
93%
Non Loanee
1069416
16137
11544
873802
5%
7%
Total
21730520
358152
228239
12172659
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