IAS Gyan

Daily News Analysis

Agriculture Insurance Company of India

23rd January, 2023 Economy

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In News:

  • Agriculture Insurance Company of India (AIC) has released compensation against claims for damage of kharif crops of 2021 to farmers in Rajasthan’s Barmer district.
  • The AIC had released ₹311 crore for the purpose, which was far less than the claims made by the agriculturists.
  • And now Bank accounts of farmers in the district were credited with the amounts such as 4 paise, ₹1, ₹10 and ₹20 as compensation.
  • The discrepancies in disbursement have left the farmers baffled and agitated.

About AIC:

  • Agriculture Insurance Company of India Limited(AIC) is a central public sector undertaking under the ownership of the Ministry of Finance. It is under the operational supervision of the Ministry of Agriculture.
  • It offers yield-based and weather-based crop insurance programs in almost 500 districts of India. It is the biggest crop insurer in the world in number of farmers served.
  • Agriculture Insurance Company of India Limited is headquartered out of New Delhi.
  • AIC aims to provide insurance coverage and financial support to the farmers.
  • In the failure of any of the notified crop as a result of natural calamities, pests and diseases to restore their creditworthiness for the ensuing season;
  • To encourage the farmers to adopt progressive farming practices, high-value in-puts and higher technology;
  • To help stabilize farm incomes, particularly in disaster years.
  • Note: The plan also provides comprehensive risk insurance for yield losses due to natural fire and lightning, storms, hailstorms, cyclone, typhoon, tempest, hurricane, tornado flood, inundation, landslide, drought, dry spells, pests/diseases,
  • AIC was incorporated on 20 December 2002.  Insurance Regulatory and Development Authority(IRDA), Hyderabad, is the regulatory body governing AIC.

Insurance Regulatory and Development Authority of India (IRDAI)

The Insurance Regulatory and Development Authority of India (IRDAI) is a statutory body under the jurisdiction of Ministry of Finance . It is tasked with regulating and licensing the insurance and re-insurance industries in India. It was constituted by the Insurance Regulatory and Development Authority Act, 1999. The agency's headquarters are in HyderabadTelangana, where it moved from Delhi in 2001.

IRDAI is a 10-member body including the chairman, five full-time and four part-time members appointed by the government of India.