Satish Kanagaraj

AGRICULTURE INSURANCE COMPANY OF INDIA LIMITED

Agriculture Insurance Company of India Limited (AIC) has been formed at the behest of Government of India, consequent to the announcement by the then Hon'ble Union Finance Minister in his General Budget Speech FY 2002-03 that, "to sub-serve the needs of farmers better and to move towards a sustainable actuarial regime, it was proposed to set up a new Corporation for Agriculture Insurance". AIC has been promoted as a specialty Crop Insurance provider to the Indian farming community, by 6 Public Sector Companies, viz General Insurance Corporation of India (35% share), NABARD (30% share), National Insurance Co. Ltd. (8.75% share), The New India Assurance Co. Ltd. (8.75% share), Oriental Insurance Co. Ltd. (8.75% share), United India Insurance Co. Ltd. (8.75% share). AIC was incorporated on 20th December, 2002 with an authorized Share Capital of INR 1500 crore (15 billion) and a Paid-up Capital of INR 200 crore (2 billion). AIC commenced its business operations from 1st April, 2003. Currently, AIC covers around 25 million farmers under various crop insurance schemes and products, making it one of the largest Crop Insurance Companies in the world. Of these, more than 86% belong to the "small & marginal" category, i.e. those holding 2 hectares of land or less.