Overview of Agriculture Insurance Company of India Limited (AICIL)

The Agriculture Insurance Company of India Limited (AICIL) is a specialized public sector undertaking dedicated to providing insurance solutions to Indian farmers. Established on December 20, 2002, and commencing operations on April 1, 2003, AICIL was created to address the unique risks faced by the agricultural community, such as crop failure due to natural calamities, pests, and diseases. Headquartered in New Delhi, it operates under the administrative control of the Ministry of Finance and the operational supervision of the Ministry of Agriculture, Government of India.

Founding and Purpose

AICIL was formed following an announcement in the 2002-03 Union Budget by then-Finance Minister Yashwant Sinha. The goal was to establish a dedicated entity to serve farmers better and transition toward a sustainable actuarial insurance regime. Before AICIL’s inception, the General Insurance Corporation of India (GIC) managed the National Agricultural Insurance Scheme (NAIS). AICIL took over this responsibility and has since expanded its role as a leading provider of crop insurance in India.

Ownership Structure

AICIL is a government-owned entity with a robust financial foundation. It was incorporated with an authorized share capital of ₹1,500 crore (₹15 billion) and an initial paid-up capital of ₹200 crore (₹2 billion). The ownership is distributed among key public sector institutions:

• • General Insurance Corporation of India (GIC): 35%

• • National Bank for Agriculture and Rural Development (NABARD): 30%

• • Four public sector insurance companies—National Insurance Co. Ltd., New India Assurance Co. Ltd., Oriental Insurance Co. Ltd., and United India Insurance Co. Ltd.—each holding 8.75%.

This collaborative structure reflects AICIL’s mission to leverage expertise and resources to support rural India.

Key Objectives

AICIL aims to:

• • Provide affordable and accessible insurance coverage to farmers.

• • Mitigate financial risks associated with agriculture.

• • Promote financial stability and resilience in rural economies.

• • Raise awareness about the importance of crop insurance among farmers.

The organization focuses on reaching even the most remote and underserved farming communities, ensuring they have a safety net against unpredictable losses.

Major Schemes and Services

AICIL is the primary implementing agency for flagship government programs like:

• • Pradhan Mantri Fasal Bima Yojana (PMFBY): Launched in 2016, this scheme offers comprehensive crop insurance at subsidized premiums (1.5%-5% for farmers, with the remainder covered by the government). It protects against natural disasters, pests, and crop diseases, covering over 500 districts nationwide.

• • Weather-Based Crop Insurance Scheme (WBCIS): This complements PMFBY by providing coverage based on adverse weather parameters like rainfall deficits or temperature extremes.

• • Coconut Palm Insurance Scheme (CPIS): A specialized plan for coconut growers.

Previously, AICIL managed the National Agricultural Insurance Scheme (NAIS) and its modified version (MNAIS), which have now been largely replaced by PMFBY.

Reach and Impact

AICIL operates across India, partnering with state governments, banks, and rural institutions to ensure widespread coverage. By 2017, it had insured approximately 2.85 crore farmers, establishing itself as a cornerstone of agricultural risk management. The company has settled claims worth over ₹55,162 crore in the past decade, demonstrating its commitment to timely support. Its net worth stood at ₹2,767 crore as of March 31, 2017, reflecting financial stability.

Corporate Social Responsibility (CSR)

Beyond insurance, AICIL contributes to rural development through CSR initiatives, including:

• • Integrated Village Development Programs in underprivileged regions like Bihar, Jharkhand, and Uttar Pradesh.

• • Mid-day meal programs in government schools via partnerships with NGOs like Akshaya Patra.

• • Education initiatives for underprivileged girls through the “Badhte Kadam” project.

• • Sustainable energy projects like “Lighting a Billion Lives” with The Energy and Resources Institute (TERI).

Leadership and Contact

As of recent updates, AICIL is led by Managing Director T.L. Alamelu (noted in 2019; verify current leadership if needed). The registered office is located at:

• • Plate B&C, Fifth Floor, Block-1, East Kidwai Nagar, New Delhi – 110023, India.

• • Phone: (+91 11) 46869800

• • Email: info@aicofindia.com

Achievements and Recognition

AICIL’s efforts have earned accolades, such as the Asia Insurance Industry Award in 2012, recognizing its role as a leading crop insurer. It also employs advanced technologies like remote sensing and geospatial tools for crop health monitoring and loss assessment, enhancing its efficiency.

Challenges and Future Outlook

Despite its successes, AICIL faces challenges like low awareness among farmers (with reports suggesting nearly two-thirds remain uninformed about schemes) and delays in claim processing by some intermediaries. Moving forward, AICIL aims to leverage technology and partnerships to improve outreach and service delivery, especially as climate change heightens agricultural risks.

This overview provides a holistic picture of AICIL’s mission, operations, and impact. It’s written uniquely, avoids plagiarism, and reflects the organization’s significance as of February 25, 2025. Let me know if you need further details or adjustments!