Coconut Palm Insurance Scheme

Details about Coconut Palm Insurance Scheme

The Coconut Palm Insurance Scheme (CPIS), launched by the Coconut Development Board under the Ministry of Agriculture and Farmers Welfare, aims to protect coconut palms against natural calamities, pests, diseases, and other risks. This scheme ensures financial relief to farmers while encouraging sustainable and profitable coconut farming.

Key Features:

• Coverage:
  • Insures healthy nut-bearing coconut palms aged 4 to 60 years for Dwarf and Hybrid varieties, and 7 to 60 years for Tall varieties.
  • Covers palms grown as monocrops, intercrops, on bunds, or in homesteads.
  • Excludes unhealthy or senile palms.
• Risks Covered:
  • Natural calamities like storms, cyclones, floods, and drought.
  • Pest and disease outbreaks causing severe damage.
  • Earthquakes, landslides, and tsunamis.
  • Fire incidents, including accidental, bush, and forest fires.
• Exclusions:
  • Losses due to theft, war, or negligence.
  • Damage from animals, birds, or improper maintenance.
  • Palms becoming unproductive due to natural aging or uprooting.

Benefits for Farmers:

1. Income Protection: Provides compensation for loss of palms due to insured risks.
2. Encourages Replanting: Minimizes financial risk, promoting rejuvenation and replanting of coconut palms.
3. Wide Applicability: Available for farmers in all coconut-growing regions across India, ensuring holistic coverage.

Implementation:

The scheme is implemented by the Agriculture Insurance Company in partnership with state governments. It targets cluster villages to ensure maximum coverage of bearing and healthy palms in coconut-growing states and union territories.

Why CPIS is Important:

The scheme not only safeguards farmers’ livelihoods but also supports the coconut industry’s growth by ensuring uninterrupted cultivation despite unforeseen challenges.

For more details or to apply, contact your nearest Coconut Development Board office or state agricultural department.

Benefits of Coconut Palm Insurance Scheme

The Coconut Palm Insurance Scheme (CPIS) offers financial security to coconut farmers by covering risks like natural calamities, pests, and diseases. Here are the key benefits of this scheme:

1. Affordable Premiums with Subsidies

• Premium Sharing:
  • 50% by Coconut Development Board (CDB)
  • 25% by State Government
  • 25% by Farmers
• Premium Rates and Coverage:
  • For palms aged 4–15 years: ₹9 per palm/year. Farmers pay only ₹2.25, with a sum insured of ₹900.
  • For palms aged 16–60 years: ₹14 per palm/year. Farmers pay only ₹3.50, with a sum insured of ₹1,750.
• Flexible Payment Options:
  If the State Government does not contribute, farmers pay 50% of the premium, ensuring accessibility for all. Farmer associations can also cover the premium on behalf of growers.

2. Multi-Year Policies with Discounts

• Two-Year Policy: 7.5% rebate on premiums.
• Three-Year Policy: 12.5% rebate on premiums.
• Long-term coverage ensures consistent protection and reduced costs.

3. Comprehensive Risk Coverage

The scheme compensates for the total loss or unproductivity of coconut palms caused by insured risks.

• Immediate Loss: Full sum insured is paid upon complete damage.
• Gradual Loss: Compensation is provided when palms are declared unproductive due to insured perils, certified by authorities.
• Salvage Value: Farmers retaining unproductive palms receive 50% of the sum insured after deductions.

4. Inclusive Eligibility and Flexibility

• Farmers can join the scheme anytime during the year, with risk coverage starting the following month.
• Available to individual growers or associations with an “insurable interest.”

5. Hassle-Free Claims Process

Claims are settled upon certification from the Coconut Development Board (CDB) or Agriculture/Horticulture Department. This ensures transparency and timely support for farmers.

What is the eligibility criteria for Coconut Palm Insurance Scheme?

Eligibility Requirements:

1. Minimum Number of Palms:
   • Farmers must offer at least 5 healthy, nut-bearing palms for insurance.
2. Insurable Age Groups:
   • Dwarf and Hybrid varieties: Palms aged 4 to 60 years.
   • Tall varieties: Palms aged 7 to 60 years.
3. Individual Palms Coverage:
   • Insurance is applicable to individual palms, not on an area basis.
   • Partial plantation coverage is not allowed—farmers must insure all eligible palms within a contiguous area or plot.

Scope of Coverage:

• Covers all healthy palms in the specified age group within the districts selected for implementation.
• Premium and sum insured are categorized into two age groups:
  • 4–15 years and 16–60 years.
• Farmers must declare the age of palms during the proposal. The insurance company reserves the right to verify the palms’ age and condition at any time.

Franchise Clause (Minimum Loss Threshold):

Claims are assessed only if the number of palms damaged in a contiguous area exceeds the following thresholds:

Insured Palms in Contiguous Area	Minimum Palms Lost (Franchise)
Fewer than 30	1 palm
31–100 palms	2 palms
More than 100 palms	3 palms

Waiting Period:

• Loss or death of palms occurring within 30 days from policy inception is not covered, except for policy renewals without a time gap.

How to apply for Coconut Palm Insurance Scheme?

Here’s How to Apply:

1. Contact Points:
   • Reach out to representatives or authorized agents of the insurance company.
   • Alternatively, visit the nearest Agriculture or Horticulture Department office for assistance.
2. Payment of Premium:
   • Farmers pay the premium amount after deducting the applicable subsidy.
   • Payments can be made via cash, cheque, or bank draft in favor of the insurance company.

Claim Assessment and Settlement Procedure

In case of loss or damage to insured coconut palms, the following steps ensure a smooth claims process:

1. Intimation of Loss:
   • Notify the insurance company within 15 days of the event causing the damage.
   • Provide all relevant details, including the type of loss and affected palms.
   • Claims can also be reported through State Government Call Centers until the insurance company establishes its own helpline.
2. Loss Assessment Certification:
   • A certification is required from the Coconut Development Board (CDB) or authorized agencies such as the Agriculture/Horticulture Department or State Agriculture University.
   • The assessment must justify the cause of loss and be submitted within 15 days of the claim intimation.
3. Inspection:
   • The insurance company may send representatives for a joint assessment with the certifying agency to verify the loss.
4. Claim Settlement:
   • The insurance company will release the claim amount within one month after receiving all certified documents.
   • Claim release depends on the receipt of premium subsidies from both the CDB and the State Government.
   • Once a full claim is paid, the insurance policy ceases to operate for the affected palms.

Additional Benefits:

• Personal Accident Coverage:
  • Coconut climbers registered with the CDB or State Government may receive personal accident coverage arranged with public sector insurance companies.
  • The premium and sum insured are negotiated based on the number of climbers insured.

What are the documents required to apply for Coconut Palm Insurance Scheme?

Farmers or growers interested in insuring their coconut palms under the CPIS must provide the following documents:

Essential Documents:

1. Identity Proof:
   • A valid ID proof of the farmer (e.g., Aadhaar card, voter ID, or other government-issued ID).
2. Proposal Form and Premium Payment:
   • Complete the proposal form and submit it along with the premium amount (preferably through a demand draft).
3. Proof of Land Ownership or Plantation:
   • Provide a land record or a certificate issued by revenue authorities.
   • The certificate may be routed through the Agriculture Department, Coconut Development Board (CDB), or Horticulture Department, as per state requirements.
4. Declaration of Healthy Palms:
   • A signed declaration confirming that only healthy palms are being insured.
5. Sketch of the Plantation:
   • A rough sketch of the plantation indicating:
     • Land identification numbers.
     • Number of plots and palms in each plot.
     • Preferably, assign a unique number to each palm.
6. Bank Account Details:
   • Submit bank account details for claim settlements and related transactions.
7. Additional Documents (if required):
   • Any other documents as specified by the Coconut Development Board or relevant authorities.

Source and References

• Official Website
• Guidelines