Horticulture Insurance

India has been traditionally farmer dependent economy and it still contributes more than 30% of India’s GDP. Despite attempts to insure the crops of farmers facing the vagaries of weather n 1972 and 1979, a Comprehensive

Crop Insurance Scheme launched in 1985 was in true sense first of its kind of Crop Insurance. Subsequently in year 2000, a National Agriculture Insurance Scheme expanded the scope of the crop insurance to cover a wide variety of agricultural products.

Horticulture Insurance typically covers the plants, fruits, nuts, flowers, ornamental plantation and vegetables. One of the distinguishing factors with respect to crop insurance is that in Horticulture bearing few exceptional cases, the crop here in question is the plant which gives the fruit/flower on a year on year basis and the whole plant are not re-grown every year.

Horticulture Insurance covers the following plantations:

  • Horticulture Crops:(i) Grape (ii) Citrus (Orange, Lime, Sweet Lime) (iii) Chikoo (iv) Pomegranate (v) Banana
  • Plantation Crops: (i) Rubber (ii) Eucalyptus (iii) Poplar (iv) Teak Wood
  • Sugarcane
  • Mangium
  • Vanilla
  • Arecanut
  • Cocoa
The perils covered include the damage to the tree/plant/crop due to Fire, Lightening, Storm, Cyclone, Typhoon, Hurricane, Hailstorm, Tempest, Flood, Inundation, Riots, Strikes, Acts of Terrorism, and Frost etc. Fire includes Bush fire as well as Forest Fire.

The sum insured covered in Horticulture, unlike crop insurance is not the threshold yield of the area where the plants are grown. It is infect the cost of inputs to grow the tree/plant.

The cost of inputs includes the cost of tilling the land, Pruning, weeding, planting, seeding, dethrashing, soil tillage, fertilizers, manures, spraying of microelements, plant protections charges, maintenance of soil structures, pesticides, insecticides, cost of irrigation and labour charges.

The policy does not cover theft, damage due to insects, pests, disease, climatic variations, damage by birds/animals, earthquake etc.

Weather based insurance products are also available for select fruits/flowers as a separate policy.

The policy is available to individual farmer both loanee as well as non loanee.