Agri Insurance

Crop Insurance: Bio-Fuel Tree or Plant Insurance

About 80 % of the world’s energy requirements are met by fossil fuel which is depleting day by day due to increase in demand. This has led us to explore alternative energy sources, the most promising amongst which are bio-fuels. To promote this environment friendly fuel, the government is giving various incentives and subsidies to Bio-fuel tree/plant growers to attain the energy security.


This insurance scheme is applicable to Bio-fuel tree / plant growers and producers, whose produce/ yields are likely to be affected by the specified perils.

The trees / plants covered under the policy are: Jatropha curcas (Jatropha),Pongamia pinnata (Karanja) ,Azadirachta indica (Neem), Bassia latifolia (Mahua), Callophyllum inophyllum (Polanga) & Simarouba glauca (Paradise Tree).

Scope of Cover:

The policy shall cover and indemnify the insured against pecuniary loss suffered by the insured in respect of cost of inputs on account of the total loss or damage to the trees/ plants occasioned by natural calamities like Flood, Cyclone, storm, Frost and Pest & diseases etc., either in isolation or concurrently. Total loss shall mean loss or damage to individual Bio-fuel plant or entire plantation or part thereof leading to death of the plant or making the plant economically unproductive.

Sum Insured:

Sum insured is based on cost of inputs per unit area of insurance covered which will depend on nature of tree / plant and age of tree / plant. Sum Insured is broadly equivalent to input cost, and can extend up to 125% / 150% of the input cost


The premium rate has been arrived at on the basis of (a) risk profile of the tree / crop; (b) nature of risks covered; (c) geographical location; (d) rate charged by other insurers for similar risks; (e) deductibles, and (f) loading for various costs and expenses of the insurer.

Period of insurance:

The Policy period is annual, with a provision to go for policy of 3 or 5 years duration.

Loss Assessment Procedure:

On occurrence of any insured perils leading to the total loss of damage to the plant /plants the insured has to submit the claim form to Agriculture Insurance Company of India Limited (AIC). AIC shall send a licensed surveyor along with an Agriculture Expert to the field for assessing the loss to facilitate claim processing. For the purpose of claims, death / totally damaged plants making the plant economically unproductive shall be considered as loss under the policy. Decline and / or retardation of growth shall not be deemed as loss.