1. Trust that takes care of Today & Tomorrow 1 WELCOME Agriculture Insurance Company of India Ltd. Regional Office – Dehradun, Uttarakhand Presentation on Crop Insurance State: Uttarakhand

2. Trust that takes care of Today & Tomorrow 2 About AIC  Incorporated on 20th Dec., 2002  Taken over business operations from erstwhile Implementing Agency i.e., GIC w.e.f. 1 st April 2003  Promoters: GIC (35%), NABARD (30%) and NIA, NIC, OIC & UIIC (8.75% each)  2-Tier structure - Head Quarters at New Delhi and 17 Regional Offices

3. Trust that takes care of Today & Tomorrow 3 Crop Insurance Programmes implemented by AIC in Uttarakhand National Agricultural Insurance Scheme (NAIS) since Rabi 2002-03National Agricultural Insurance Scheme (NAIS) since Rabi 2002-03 Weather Based Crop Insurance Scheme (WBCIS) since Kharif 2010Weather Based Crop Insurance Scheme (WBCIS) since Kharif 2010 Modified National Agricultural Insurance Scheme (MNAIS) since Rabi 2010-11Modified National Agricultural Insurance Scheme (MNAIS) since Rabi 2010-11 Uttarakhand Seb Bima Yojana (USBY) during 2008 & 2009.Uttarakhand Seb Bima Yojana (USBY) during 2008 & 2009.

4. Trust that takes care of Today & Tomorrow 4 NAIS – salient features  Homogenous Area and Yield Guarantee based  Food crops / Oilseeds (FC/OS) & Annual Commercial / Horti. Crops  Compulsory for Loanee & Optional for Non-Loanee farmers  Sum Insured - Loan amount to 150% of value of Average Yield  Premium – FC/OS – Kharif - 2.5% to 3.5% ; Rabi - 1.5 to 2% and Actuarial for Annual Commercial / Horticultural Crops  Premium Subsidy - 10% to Small / Marginal farmers  Claims in excess of 100% for FC/OS and 150% for Commercial / Horti. Crops are shared by Central and State Govts. On 50:50 basis.

5. Trust that takes care of Today & Tomorrow 5 Crops notified and insurance units under NAIS in Uttarakhand  Rabi – Wheat: Hills - Tehsils Plain -Nyay Panchayats  Kharif - Paddy: Hills - Tehsils Plain-Nyay Panchayats Ragi: Hills-Tehsils Potato & Ginger: Districts Level up to Kharif 2010. Later on covering under WBCIS since 2011

6. Trust that takes care of Today & Tomorrow 6 Year wise Coverage in Uttarakhand under NAIS (Amount in Rs. Lakhs) YearFarmers Covered Sum Insured PremiumClaimFarmers Benefited Claim Ratio 2002-0355893665.472.9281953.38 2003-041073171415.632.634,852210.52 2004-0528822383.291.8773856.84 2005-0615575200127.50235.511,177856.40 2006-0720135424073.6717.281,36623.46 2007-08332936225103.17297.127,657287.99 2008-095300812611243.341388.7528,487570.66 2009-109317418237442.02959.7837,320217.13 2010-117431519142574.381171.3424886203.93 2011-12364859330189.5516.5616288.74 2012-134014811001225.4358.61311326.00 Total 385335841051903.424182.37112043219.73

7. Trust that takes care of Today & Tomorrow 7 Kharif & Rabi Season Coverage in Uttarakhand under NAIS (Amount in Rs. Lakhs) Kharif & Rabi SeasonsFarmers Covered Sum Insured PremiumClaim Farmers benefited Total Kharif (Kharif 2003 to Kharif 2012) Crop: Paddy, Ragi, Potato & Ginger 203831452721320.803006.3074114 Total Rabi (Rabi 2002 to Rabi 2012) Crop: Wheat 18150438833582.621176.0737929 Total 385335841051903.424182.37112043

8. Trust that takes care of Today & Tomorrow 8 WBCIS: Key Features  Based on Weather parameters like Frost, Heat, Humidity, Un- seasonal Rainfall & Combinations  Compulsory for Loanee & Voluntary for Non-loanee  Sum insured is pre-defined and broadly equivalent to cost of production  Actuarial rates are capped at 8% for Food crops & Oilseeds & 12% for Other crops (Commercial / Hort. Crops)  Premium rates payable by farmers is the same as NAIS for FC/OS and up to a maximum of 6% for Commercial / Horticultural crops  Claims is the responsibility of Insurance Company  NAIS would not be available for Loanee farmers in the Pilot areas / crops, while Non-loanee have choice of NAIS & WBCIS

9. Weather Indexed Parameters Rainfall: Deficit rainfall, Excess rainfall, Unseasonal rainfall, Rainy Days. Temperature: Hourly Chilling units, Temperature fluctuation Wind Speed: High Wind Speed Humidity: Relative Humidity Trust that takes care of Today & Tomorrow 9

10. 10 Automated – no need for claim lodgment Based on the weather data received, claims are calculated on degree of adverse deviation of weather parameters as defined in the term sheet WBCIS Claims = Quantum of deviation from trigger value * payout per unit of deviation, subject to ceiling of maximum payout WBCIS claims are disbursed within 45 days of end of contract period NODAL Banks / Insured Non-Loanee farmers receive the claim & details thereof through RTGS/NEFT etc Banks/PACS credit the claim to the beneficiary farmers’ a/c, display their name on the notice board Claim Processing - WBCIS Trust that takes care of Today & Tomorrow

11. 11 WBCIS - Advantages  Trigger events can be independently verified  Moral Hazard, Adverse Selection problems can be controlled  Relatively inexpensive to operate  Wide variety of crops can be covered  Expeditious claim settlement (within 45 days of expiry of risk)  Can also be implemented for crops with no past yield data  No adverse impact of previous low yields / lower indemnity limit

12. Trust that takes care of Today & Tomorrow 12 Coverage under pilot WBCIS Since Kharif 2010- Uttarakhand SEASON/CROPS COVEREDFarmers covered Sum Insured Gross premiumClaims Farmers benefited Kharif 2010 Apple & Mango1153564.3467.72124.241143 Rabi 2010-11 Apple,Mango, Litchi, Potato & Tomato22461788.21214.5846.58518 Kharif 2011 Potato, Tomato & Ginger198584707.43564.90293.446536 Rabi 2011-12 Apple,Mango, Litchi, Potato & Tomato737506.0360.72153.05736 Kharif 2012 Potato, Tomato & Ginger176394745.01569.402313.1617639 Rabi 2012-13 Apple,Mango, Litchi, Potato & Tomato17121304.53156.5483.311287 Kharif 2013 Potato, Tomato & Ginger216975818.01698.16209.667706 Total6680720188.112368.043510.0437198 Rs. In Lakhs

13. 13 APPLE INSURANCE POLICYIES / SCHEMES  UTTARAKHAND SEB BIMA YOJANA (USBY) – 2007  - This was a unique hybrid product developed by and implemented by AIC on behalf of Govt. of Uttarakhand.  Hail and Weather parameters were covered.  Weather parameters covered were – chilling requirement, temperature fluctuation, and Rainfall.  Premium was 2.5% of SI, and claims in excess of premium was paid by the Govt., --- as per NAIS.  Claims due to Hail was determined by physical verification of insured apple orchard. Trust that takes care of Today & Tomorrow

14. 14 APPLE INSURANCE POLICYIES / SCHEMES  UTTARAKHAND SEB BIMA YOJANA (USBY) – 2009  - This was a non-subsidized policy developed by AIC.  - Farmers had to pay premium @16% of SI.  It was a single named peril policy – covering losses due to HAIL. Trust that takes care of Today & Tomorrow

15. 15 Coverage under Uttarakhand Seb Bima Yojana (USBY)-State Uttarakhand SEASON/CRO PS COVEREDFarmers coveredSum Insured Gross premiumClaims Farmers benefited Rabi 2007-08 Apple1411626.8515.67221.521279 Rabi 2009-10 Apple354127.7020.3565.08354 Total1765754.5536.02286.601633

16. Trust that takes care of Today & Tomorrow 16 Overall Coverage under NAIS,USBY& WBCIS-State Uttarakhand SchemesFarmers coveredSum Insured Gross premiumClaims Farmers benefited NAIS385335841051903.424182.37112043 WBCIS6680720188.112368.043510.0437198 USBY1765754.5536.02286.601633 Total453907105047.74307.487979.01150874

17. Trust that takes care of Today & Tomorrow 17 Namaskar