Rainfall Insurance— “Varsha Bima”

Agriculture Insurance Company of India Ltd. (AICIL) introduced Rainfall Insurance Scheme known as “Varsha Bima” during the 2004 southwest monsoon period.

Varsha Bima is a mechanism for providing effective risk management aid to those individuals and institutions likely to be impacted by adverse rainfall incidence.

Varsha Bima provided for five different options suiting varied requirements of farming community these are:

[1] Seasonal rainfall insurance based on aggregate rainfall from June to September.

[2] Sowing failure insurance based on rainfall between 15 June and 15 August.

[3] Rainfall distribution insurance with the weight assigned to different weeks between June and September.

[4] Agronomic index constructed on the basis of water requirements of crops at different pheno-phases.

[5] Catastrophe option, covering extremely adverse deviation of 50 percent and above in rainfall during the season.

Varsha Bima is a Rainfall based crop insurance scheme and compensation is paid when the actual rainfall recorded during the season falls short of a specified percentage of normal rainfall of the area.

All cultivators – irrespective of Loanee or Non-Loanee; Small / Marginal or Other; Owners or Tenants / Sharecroppers can buy Varsha Bima.

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