AIC gets contract to cover crops

Tribune News Service

Shimla, October 23

The Directorate of Horticulture has awarded Agriculture Insurance Company (AIC) of India Limited the contract for running the weather-based crop insurance scheme for 2018-19. 

The crop insurance scheme will be in force in the state from December 31, 2018, to July 31, 2019, officials said. 

Sources in the department said the Directorate had got bids from five companies, including four private companies. But AIC quoted the lowest rates for all three clusters of the 12 districts in the state. The company quoted 9.8 per cent rate for cluster-1, comprising of Kullu, Bilaspur, Chamba and Hamirpur; 14.40 per cent for cluster-2, which consists of Kangra, Kinnaur, Lahaul-Spiti and Mandi; and 9.83 per cent for cluster-3, which includes Shimla, Sirmaur, Solan and Una. 

“The scheme has been finalised and we have written to the government to release subsidies,” said Raghuvanshi, an in charge of the insurance scheme. 

Meanwhile, as many as 64,167 farmers had subscribed to the weather-based insurance scheme in 2017-18 but the companies are yet to disburse the insurance claims worth Rs 37 crore. 

As per the scheme parameters, farmers pay five per cent of the premium, while the balance of premium is paid by the state and Central Government in 50:50 ratio.