ICICI Lombard General Insurance has launched a weather
insurance scheme to protect the farmers.
company has modelled ''rainfall insurance'' policies in
association with the World Bank, ICICI Bank and Basix,
a micro-finance institution, according to a press release.
The insurance premium will be decided on a case-to-case
basis depending on the geography and the risk associated.
insurance does not suffer from the issues of moral hazard,
adverse selection and high administrative costs of traditional
crop insurance, and it is therefore better suited to small
farmers in rainfall-dependent countries such as India,"
says Ritesh Kumar, head (risk), ICICI Lombard General
experience in the implementation of the pilot project
has been very encouraging and the company is geared to
scale up the operations and ensure fast claims settlement,"
get reliable data, ICICI Lombard has tied up with the
Indian Meteorological Department to obtain the latest
weather reports and historical charts.