The “Coconut Palm Insurance Scheme (CPIS)” is being implemented by the Coconut Development Board, Ministry of Agriculture and Farmers Welfare, Government of India with the objective of insuring coconut palms against natural calamities, climatic risks, pests, diseases, and other perils.
Coconut Palm Insurance Scheme - Introduction
The “Coconut Palm Insurance Scheme (CPIS)” is being implemented by the Coconut Development Board, Ministry of Agriculture & Farmers Welfare, Government of India, with the objective of insuring coconut palms against natural calamities, climatic risks, pests, diseases, and other perils. Under this scheme, all healthy nut‑bearing coconut palms in the age group of 4 to 60 years in a contiguous area (mono/mixed) can be insured against natural perils leading to death/loss of palm or becoming unproductive. The scheme is being implemented in all coconut‑growing states through the Agriculture Insurance Company and implementing state governments.
Objectives
- Assist coconut growers in insuring coconut palms against natural and other perils.
- Provide timely relief to farmers who suffer income loss due to sudden death of palms.
- Minimize risk and encourage replanting and rejuvenation to make coconut farming remunerative.
Applicability
The all healthy nut‑bearing coconut palms grown as mono or intercropped, on bund farms or homesteads, and to all varieties of coconut, including Tall, Dwarf, and hybrids. Since dwarf and hybrid varieties begin to yield fruit from the fourth year of planting, this variety of coconut palms in the age range of 4–60 years will be covered under the scheme, but tall variety coconut palms will be eligible for coverage in the age range of 7–60 years. Unhealthy and senile palms will be excluded from coverage.
- Storms, hailstorms, cyclones, typhoons, tornadoes, heavy rains.
- Flood and inundation.
- Pests and diseases of widespread nature causing irreparable damage to palm.
- Accidental fire, including forest fire and bushfire, lightning.
- Earthquakes, landslides, and tsunamis.
- Severe drought and consequential total loss.
States & Areas Covered
- This insurance scheme will be implemented in selected districts of all states and union territories that grow coconut palms.
- All bearing and healthy palms will be insured in a contiguous area by farmers/growers, and every effort will be made by the CDB to insure all bearing and healthy palms in cluster villages of the district(s).
Benefits
Sum Insured & Premium: Under this scheme, 50% of the premium is borne by the Board and the balance is shared between the State Government and farmers at 25% each, as below:
| Age group of Palms | Premium per plant/year | Board’s Share (50%) | State Govt. Share (25%) | Farmer’s Share (25%) | Sum insured per palm |
|---|---|---|---|---|---|
| 4-15 years | ₹9 | ₹4.50 | ₹2.25 | ₹2.25 | ₹900/- |
| 16-60 years | ₹14 | ₹7 | ₹3.50 | ₹3.50 | ₹1750/- |
Premium Subsidy:
- Of the amount above, 50% will be paid by the Coconut Development Board (CDB) and 25% by the State Government concerned, and the remaining 25% will be paid by the farmer/grower.
- If the State government does not agree to bear 25% of the premium, farmers/growers will be required to pay 50% of the premium if they are interested in the insurance scheme. If a planters/growers’ association wishes to bear the premium on behalf of planters/growers, such associations may do so if they have an insurable interest.
- In any case, planters/growers shall have to bear a minimum of 10% of the premium. The premium subsidy amount (50% by CDB and 25% by participating states) will be released to the insurance company in advance based on estimates, which will be replenished or adjusted on a quarterly or yearly basis.
Insurance Term:
- A policy can be issued for a maximum period of three years. A rebate in premium of 7.5% will be provided for a two-year policy and 12.5% for a three-year policy.
- Effort will be made to ensure that all eligible farmers/growers join the scheme by 31st March of the year. However, those farmers/growers who do not join the scheme by 31st March may join the scheme subsequently, and in that case, the risk is covered from the first day of the succeeding month.
Contingency Insured: This insurance policy pays for the total loss of a palm due to perils insured, leading to the death of the insured palm or its becoming unproductive. If the death of the palm is not immediate, payment of the sum insured will be payable upon production of a certificate from the Coconut Development Board (CDB)/Agriculture/Horticulture Department justifying the cause for declaring the palm unproductive. A palm can be declared 'unproductive' only when further growth or rejuvenation of the palm is no longer possible after it has been damaged by the perils insured, provided the palm is removed or felled by the insured. If a farmer/grower wishes to retain an unproductive palm as it is (without felling), a salvage value of 50% of the sum insured will be deducted from the claim. In any case, the loss of the palm must be established as a result of the occurrence of a peril insured.
Eligibility
Individual farmers/growers offering at least five healthy nut-bearing palms for insurance in the specified age groups—4–60 years for dwarf and hybrid palms, and 7–60 years for tall palms—within contiguous area or plots will be eligible for insurance.
Insurance is for individual palms and not area-based.
Partial insurance of the plantation is not allowed.
A minimum of five healthy nut-bearing palms is the criterion to come under the insurance scheme.
The scheme will cover all healthy palms within the insurable age group in areas or districts selected for implementation of the scheme. Partial insurance of plantations in contiguous areas is not allowed. Insurance coverage is from the 4th/7th year to the 60th year, and is split into two age groups—4–15 years and 16–60 years—for fixing premium and sum insured.
Self-declaration of age group by the insured farmer/grower in the insurance proposal will be acceptable. The insurance company may verify the insured palms for authenticity at any time before the expiry of the policy period or payment of the claim. Insurance becomes void in the event of a wrong declaration of age or any material fact by the insured concerning the insurance.
The claim is assessed only if the number of palms damaged due to insured perils in a contiguous area exceeds the number of palms lost as shown for different slabs:
| Sl. No. | No. of Insured Palms in a contiguous area | Franchise (Palms lost) |
|---|---|---|
| 1 | Less than 30 | 1–100 |
| 2 | More than 100 | 3 |
Loss or death of palms within 30 days from the inception of insurance is not covered under the scheme. However, this condition does not apply to renewals of insurance without a time gap.
Exclusions
No claims shall be payable under the scheme if the palm is lost due to the operation of a peril insured within the ‘Franchise’ clause. Under this policy, the insurer is not liable for any payment for any expenses incurred by the insured in connection with or in respect to loss other than that caused by perils insured. The insurance does not cover the following events, insofar as they are applicable, keeping in view the scope of coverage:
- Loss by theft, war, invasion, civil war, rebellion, revolution, insurrection, mutiny, lockout, 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 the insured and anyone acting on his behalf.
- Damage caused by humans, birds, or any animal action.
- Improper maintenance of palms.
- Palm becoming unhealthy & senile.
- Natural mortality of the palm; uprooting of palm traceable to chiselling of roots.
Application Process
Farmers/growers desiring insurance may directly contact representatives or authorized agents of the insurance company, or may contact the nearest office of the Agriculture/Horticulture Department. Premium will be paid by the farmer/grower, net of the premium subsidy, through cash, cheque or bank draft drawn in favour of the insurance company.
Claim assessment & settlement procedure:
- Loss of insured palms must be intimated by the farmer to the insurance company within 15 (fifteen) days from the occurrence of peril, with all relevant details.
- Claims may also be intimated through the concerned State Government Call Centers until the implementing agency (i.e., the insurance company) sets up its own call centre. Loss assessment certification must be furnished by the Coconut Development Board (CDB), Agriculture/Horticulture Department, or State Agriculture University (SAU), as authorized by the insurance company for each district, justifying the cause of loss of palm, within 15 days from the intimation of loss.
- The insurance company, at its discretion, may send its representative to assess the loss jointly with the agency designated to certify loss.
- The insurance company will release the claim to the insured farmer/grower within one month from the date the relevant certified details of the claim are received in their office. Release of the claim amount, however, is subject to receiving a premium subsidy from both the CDB and the concerned state.
- Insurance ceases to operate once a full claim is paid.
- Personal Accident cover for climbers registered with the CDB or state government may be arranged with public sector general insurance companies.
- The sum insured and the premium will be negotiated depending on the likely number of climbers to be insured.