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BYRANJIT BEPARI

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Under these provision section 32B and

32C of insurance Act 1938 provides that,

every insurer have to do certainpercentage of life insurance and general

insurance business in the rural or social

sector, as may be specified by theInsurance Regulatory & Development

Authority.

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The underwrite the business in the

rural sector, to the extent of at least2% of the total gross premium in the1st Financial Year, at least 3% of the

gross premium in the 2nd

FinancialYears and 5% of the gross premiumin the 3rd and further Financial

Years. The obligations include cropinsurance also.

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In case of existing  insurers, the

minimum business is to be decidedby the IRDA in consultation withinsurer.

The Rural sector has been defined asany place, which as per latestcensus, rural area is an area in which

the population is not more than 5000and has a population is not morethan 400 per square kilometer and

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at least 7 5% of the male workingpopulation is engaged in agriculturesector.

Crop insurance is classified under´miscellaneousµ category of generalinsurance field, for which it is

mandatory to keep aside 50% ofpremium as reserve.

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Some of the agriculture insurance Schemes presently available in the country are:

i. Crop insurance

ii. Horticulture/ Plantation insurance

iii. Cattle insurance

iv. Sheep /Goat insurancev. Pig  insurance 

vi. Poultry insurance

vii. S

ericulture insuranceviii.Apiculture(shrimp / prawn) insurance

ix. Farmers· Packag e insurance

x. Agriculture pump-set insurance

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Organizations transacting Agriculture 

Insurance in India:

i. National Insurance Corporation of India

ii. New India Assurance Company Limited

iii. Oriental Insurance Company Limited

iv. United India Insurance CompanyLimited

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With passing of Insurance Regulatory &Development Act (IRDA)-1999, a door has

opened for entry of private insurers. TheLicense for a private insurer was issued duringOctober,2000. Some of the private insurers inthe in the general insurance are:

a. Reliance

b. Tata-AIG

c. Royal Sundaram

d. Iffico-Tokio Marinee. Bajaj-Allianz

f. ICICI-Lombard , etc.

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As per the stipulations and norms ofIRDA, every new insurer in the generalinsurance industry, shall do at least aminimum amount of business in thesocial sector, which includes crop andagriculture sector.

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