ICICI Lombard has got the go ahead to expand the reach of its index-based crop weather insurance program for farmers in India. The insurer has been given the mandate to provide weather based crop insurance for the 2010-2011 Rabi season (one of the two crop cultivation seasons in India) to eight new states; Madhya Pradesh, Bihar, Tamil Nadu, Karnataka, West Bengal, Chattisgarh, Jharkhand and Himachal Pradesh.
ICICI Lombard will be covering crops such as winter paddy, cotton, wheat, mustard, barley, maize, onion, potato, tomato, lentil, peas, arhar, jowar, fenugreek, coriander, cumin, methi, isabgol and brinjal during this season.
The weather index-based crop insurance from ICICI Lombard will provide cover for farmers against weather risks such as excess or deficit rainfall, variations in temperature and fluctuations in humidity. The scheme allows for instant compensation payout due to the index-based nature using data from meteorological agencies. This removes the need for claims assessment and facilitates quick payouts to help get farmers back on their feet after crop failure.
These weather insurance schemes run by ICICI in India are fast becoming the most widespread microinsurance schemes using index-based methods and are used as an example for schemes being set up in other developing countries.