Indian Farmers Find Coconut Insurance Scheme Unattractive

Coconut farmers in India find the country’s insurance scheme for coconut trees unattractive due to conditions laid down for claims, according to a recent news report in The Hindu, Tamil Nadu, on May 26.  In addition, compensation offered under the scheme was paltry.   Reports said only a few farmers in Thanjavur district made inquiries with the Agricultural Department about the scheme after Cyclone Gaja but did not prosper from the inquiry level as none of them applied for coconut insurance policy.

The insurance scheme cover loss due to the following perils leading to death or loss of trees or the trees becoming unproductive due to (i) storm, hailstorm, cyclone, tornado, heavy rain, (ii) flood and inundation (iii) pest and diseases of widespread nature causing irreparable damage (iv) accidental fire, including forest fire and bush fire, lightning (v) earthquake, landslip and tsunami (vi) severe drought and consequential total loss. 

Healthy nut-bearing trees of all varieties - tall, dwarf and hybrids grown as mono or intercropped on farms or home with dwarf and hybrid varieties aged from 4 years to 60 years and tall variety between 7 to 60 years are eligible for coverage.  A maximum of 175 trees can be insured in a hectare and unhealthy and senile crop will not qualify for coverage.