Agriculture Insurance Company of India (AIC) Overview & Future Plans

Overview

Agriculture Insurance Company of India Limited (AIC) is a Central Public Sector Undertaking (CPSU) under the Ministry of Finance, Government of India. Established on December 20, 2002, AIC is headquartered in New Delhi and specializes in crop insurance services. The company plays a crucial role in supporting India’s agricultural sector by providing financial security to farmers against crop losses due to natural calamities, pests, and diseases.

• Industry: Agricultural Insurance
• Headquarters: Plate B & C, 5th Floor, Block 1, East Kidwai Nagar, New Delhi – 110023, India
• Chairman & Managing Director: Ms. Girija Subramanian
• Owner: Ministry of Finance, Government of India
• Number of Employees: 283
• Website: www.aicofindia.com

Agriculture Insurance Company of India Financial Performance

• Net Income (2022-23): ₹766 crore (US$89 million)
• Total Premium Collection (2022-23): Over ₹10,000 crore
• Claim Settlements: AIC has settled claims worth billions to ensure farmers receive timely compensation.

AIC History

AIC was incorporated with an authorized capital of ₹1,500 crore and an initial paid-up capital of ₹200 crore, subscribed by:

• General Insurance Corporation of India (GIC): 35%
• NABARD: 30%
• National Insurance Co. Ltd.: 8.75%
• Oriental Insurance Co. Ltd.: 8.75%
• New India Assurance Co. Ltd.: 8.75%
• United India Insurance Co. Ltd.: 8.75%

Since its inception, AIC has continuously expanded its services and collaborated with various government bodies, financial institutions, and farmers’ cooperatives to enhance insurance coverage and accessibility.

Regulatory Framework

• Administrative Control: Ministry of Finance, Government of India
• Operational Supervision: Ministry of Agriculture, Government of India
• Regulator: Insurance Regulatory and Development Authority (IRDA), Hyderabad, India
• Compliance: AIC adheres to the regulatory guidelines laid out by IRDA and the Government of India to maintain transparency and efficiency.

Role in Crop Insurance

AIC was designated as the sole Implementing Agency for the Government of India’s National Agricultural Insurance Scheme (NAIS). The scheme aimed to provide affordable insurance to farmers and reduce financial distress due to crop failures.

Pradhan Mantri Fasal Bima Yojana (PMFBY)

From Kharif 2016, the government introduced the Pradhan Mantri Fasal Bima Yojana (PMFBY), replacing NAIS. AIC is the leading Implementing Agency under this scheme, which aims to provide:

• Comprehensive Risk Coverage: Covers crop losses due to drought, flood, pest infestation, and other natural disasters.
• Affordable Premium Rates: Subsidized rates for farmers to ensure financial inclusivity.
• Quick Claim Settlement: Use of technology, satellite imagery, and AI-driven analytics for timely disbursal of claims.
• Wider Coverage: Inclusion of non-loanee farmers, tenant farmers, and sharecroppers.

Market Leadership

Since its inception, AIC has remained the leading crop insurer in India and holds over 50% market share in crop insurance. It is also the largest insurer by the number of farmers insured worldwide. The company’s achievements include:

• Largest Crop Insurer Globally: Covers millions of farmers annually.
• Technological Innovations: Use of satellite imagery, drones, and AI for crop assessment and claim processing.
• Collaboration with Financial Institutions: Partnerships with banks, cooperatives, and microfinance institutions to expand coverage.
• Digital Initiatives: Online premium payment, claim tracking, and mobile-based insurance services for farmers.

Future Plans

AIC aims to expand its reach and efficiency through:

• Expansion of Insurance Coverage: Increase penetration in remote areas and marginalized farmer groups.
• Enhancement of Digital Services: Adoption of blockchain technology and AI-driven predictive analytics.
• Climate-Resilient Farming Solutions: Development of customized insurance products addressing climate change impact.
• International Collaboration: Partnering with global organizations to improve agricultural insurance models.

By continuously evolving and adopting innovative solutions, AIC remains committed to securing the future of Indian farmers and enhancing the resilience of the agricultural sector against uncertainties.

AIC Recruitment 2025 Details and Pettern

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