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Rural Insurance

According to IRDAI, it has become compulsory for insurance companies to ensure that people living in rural areas or people working in agricultural sector are able to receive the benefits of insurance as per the Insurance Act, 1938.
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The Indian law states that insurance companies should be accommodative of persons in the rural sector or social sector, persons in the economically vulnerable or backward classes of the society, workers in the unorganised or informal sector etc. (as specified by the IRDA). In the Insurance Act, 1938, sections 32–B and 32–C is where this particular law can be found. It defines the percentage of business that insurance companies are expected to put aside for the persons in the categories mentioned above. Further, the IRDA has tried to accommodate the two sections of the Insurance Act by making it compulsory for insurers who offer general insurance to support business in the rural sector as well. The IRDA has specified a minimum of 2% of total gross premium during the first financial year, a minimum of 3% of gross premium in the second financial year and a minimum of 5% of the gross premium in the third and additional financial years. The plan must include insurance for crops.

Various programmes has been launched by the Government of India for the benefit of marginal farmers, small farmers, agricultural labourers, etc. Integrated Rural Development Programme (IRDP) have integrated these programmes since 1980 with the help of funding from the Central and State governments.

The main objective of the programme is to make sure that the rural families involved are provided with working capital and assistance in the form of income generating assets, etc. Institutional credit, subsidy etc. will be offered for the same purpose. The beneficiaries of IRDP projects will be protected with the special insurance schemes. The policies come with reduced rates of premium and simplified procedures for claims.

Eligibility of Rural Insurance:

According to the IRDA, Rural sector can only be defined as such only if it fills the following categories (according to the last census):

  • Has a population of less than 5000
  • The density of population in the area must not be more than 400 per square kilometre.
  • A minimum of 75% of the male working population must be engaged in agriculture related work.

Rural Policies:

The following can be insured under Rural insurance policies:

  • Sub-animals including honeybee, silkworm etc.
  • Livestock including sheep, cattle, goat, etc.
  • Property. For example agricultural pumpsets, etc.
  • Plantation and horticultural crops including grapes, rubber trees etc.
  • Persons. For example gramin accident.

Coverage:

Coverage for the policy includes the following:

Death due to:

  1. Accident due to lightning, fire, flood, storm, inundation, hurricane, cyclone, earthquake, tornado, tempest and famine.
  2. Cattle contracting diseases or disease occurring during the policy period.
  3. Riot and strike
  4. Surgical operations

Disability (PTD) may be covered if the policy holder opts to pay an extra premium:

  1. Permanent Total Disability, if in the case of Milch Cattle, for example, means the total and permanent incapacity to yield milk or conceive.
  2. Permanent Total Disability, if in the case of Stud Bulls, for example, means permanent inability to breed.
  3. Permanent Total Disability, if in the case of Calves / Heifers, Bullocks, and castrated male buffaloes, means the permanent and total inability of carrying out the use as mentioned in the proposal form.

Exclusions

If it is found that the cattle has been through any of the following, then the insurer will not cover the cost:

  1. Overloading, wilful or malicious injury or neglect, unskilful treatment or not using the animals for the purpose that has been stated in the policy.
  2. Deliberate slaughter of the animal. This does not include cases where the animal is killed due to incurable suffering of the animal, in which case there must be a certificate from a qualified Veterinarian. This also does not include cases where the animal is slaughtered by the order of lawfully constituted authority.
  3. The animal will not be covered if it contracted a disease or was in an accident before the insurance period.
  4. Clandestine sale or theft of the insured animal will not be covered.
  5. Risks involved while transporting the animal by air and sea will not be covered.
  6. Pleuro–pneumonia if the insured cattle is in Sibasagar Districs of Assam or Lakimpur.

Special Conditions:

  • The insurer will not be liable to pay the claim if the animal died due to a disease which occurred within 15 days from the commencement of risk.
  • The ear tags must be surrendered to the company, without which the claim will not be entertained. It is the responsibility of the insured to make sure that the company is informed if a tag is lost and also to get the animal retagged.

Claim Procedure:

If the insured animal dies, the policy holder must immediately intimate the news to the insurer. He/ she must also provide the insurer with the duly–filled claim form, Death Certificate from a qualified veterinarian, Post-mortem examination report (if the company requires it), Ear Tag of the animal and also must make sure that the value of the animal has been established as required.

Sum Insured

The market value of cattle may differ according to the breed, time and area. A qualified veterinarian recommends the sum insured based on the particular animal’s market value. Security of the animal is based on market value or sum insured, whichever is less. For scheme animals, the policy is issued as agreed value policy and claims are settled for 100% of sum insured.

Premium

The premium rates are higher for non-scheme animals than for scheme animals. This mainly includes crossbred/ indigenous animals. Exotic animals will be charged higher rates. Long-term discounts and group discounts are available. In case of adverse claims experience, there is a possibility of increasing the renewal premium.

Other policies that rural insurance have cover for:

  1. Farmers’ package insurance
  2. Hut insurance
  3. Gramin personal accident insurance
  4. Animal–driven cart insurance
  5. Cycle rickshaw policy
  6. Lift irrigation insurance
  7. Failed–well insurance
  8. Agricultural pump set policy
  9. Horticulture / plantation insurance scheme
  10. Honey bee insurance
  11. Sericulture (silk worm) insurance
  12. Aqua culture (shrimp / prawn) insurance
  13. Poultry insurance
  14. Sheep and goat insurance
  15. Insurance cover is also available for the following types of animals:
    • Elephants
    • Pigs
    • Rabbits
    • Zoo and Circus animals and birds

GST of 18% is applicable on life insurance effective from the 1st of July, 2017

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Rural Insurance Reviews

Page 1 of 50 1 2 3 4 5
  • LIC Life Insurance
    "Good Service"
    0.5 5.0/5 "Blown Away!"
    I have Life Insurance policy which was taken direclty through LIC agent.This was a Jeevan Anand policy which is a Maturity benefit policy for the tenure of 20 years .The premium is paid on quarterly basis and there was no difficulties faced so far when availed this policy.I will be paying the premium through the agent.
    Was this review helpful? 0
    , mumbai
    Reviewed on Oct 16, 2019
  • LIC
    LIC Life Insurance
    "Good insurer"
    0.5 5.0/5 "Blown Away!"
    I have taken a life insurance in LIC on 9 years before. The policy is for 15 years. I am paying premium in the quarterly package the amount of 6 thousands which is nominal. While getting a policy my agent has given an information about the policy details. It covers myself and children. It is a jeevan anadha policy.
    Was this review helpful? 0
    , kanchipuram
    Reviewed on Oct 15, 2019
  • LIC Life Insurance
    "Good Policy"
    0.5 5.0/5 "Blown Away!"
    I have taken my life insurance policy from LIC. It was a Jeevan Umang. Its almost 150 years old which covers for 95% and the people invested in LIC is higher when i compared to others. This policy has two benefits one its a life insurance policy and other is pension covered policy. After 60 of years of age, i will get the pension.
    Was this review helpful? 0
    , vellore
    Reviewed on Oct 15, 2019
  • LIC Life Insurance
    "Medium"
    0.5 3.0/5 "Satisfactory"
    One month before I have taken a personal loan so they made to take life insurance with LIC company. On one payment need to do fully. In case if we missed to do payment or for some other reason unable to do from insurance they will claim full amount. Myself applicable for 10 lakhs but taken for 5.5 lakhs.
    Was this review helpful? 0
    , pondicherry
    Reviewed on Oct 14, 2019
  • LIC Life Insurance
    "Good insurer"
    0.5 3.0/5 "Satisfactory"
    I have taken a life insurance in LIFE INSURANCE CORPORATION OF INDIA on one year before. I am paying premium in the quarterly package for the amount of 2065 rupees.While getting a policy my agent has given an information about the policy details. It covers my mother only.
    Was this review helpful? 0
    , pondicherry
    Reviewed on Oct 14, 2019
  • LIC Life Insurance
    "Excellent Service"
    0.5 5.0/5 "Blown Away!"
    I have taken Life Insurance policy through LIC agent.This is a Money back policy and this tenure is for 25 years,I am paying the premium on monthly basis.I am paying Rs.2168 and paying the premium through online only .I have got the policy documents on time .I am really satisfied with the service so far.
    Was this review helpful? 0
    , tirupur
    Reviewed on Oct 14, 2019
  • ICICI Prudential Life Insurance
    "Average"
    0.5 4.0/5 "Great!"
    I have taken a life insurance in ICICI PRUDENTIAL on 6 months before. The policy is for 15 years. Now I am paying premium for 25 thousands rupees. While getting a policy my agent has given an information about the policy details, however there are some charges applicable.
    Was this review helpful? 0
    , saharsa
    Reviewed on Oct 14, 2019
  • LIC Life Insurance
    "Good insurer"
    0.5 4.0/5 "Great!"
    I have taken a life insurance in LIC on 1 year before. The policy is for 20 years. I am paying premium on monthly package. While getting a policy my agent has given an information about the policy details. It covers myself. The amount will get auto debit from my account. It is jeevan anadha policy.
    Was this review helpful? 0
    , saharsa
    Reviewed on Oct 14, 2019
  • LIC Life Insurance
    "Good insurer"
    0.5 3.0/5 "Satisfactory"
    I have taken a life insurance in LIFE INSURANCE CORPORATION OF INDIA on 8 years before. The policy is for 20 years. It is a jeevan anadha policy. I am paying premium in the yearly package paying for 12 thousands. While getting a policy my agent has given an information about the policy details. It covers up to myself.
    Was this review helpful? 0
    , erode
    Reviewed on Oct 14, 2019
  • SBI Life Life Insurance
    "Fine Policy"
    0.5 5.0/5 "Blown Away!"
    My friend has suggested me a money back from SBI LIFE. I got the policy 2 years before. I have been paying the premium amount of Rs. 7000 for every six months. I make the premium through ECS. Just for the savings purpose, i bought this policy.
    Was this review helpful? 0
    , dindigul
    Reviewed on Oct 14, 2019
  • Bajaj Allianz Life Life Insurance
    "Fine Policy"
    0.5 5.0/5 "Blown Away!"
    One of my asked me to join in a Bajaj allianz life insurance policy. This is also money back policy. I pay the premium amount of Rs. 5000 and i have chosen the quarterly payment mode. I bought the policy 8 years back. Once the amount got credited to my account.
    Was this review helpful? 0
    , dindigul
    Reviewed on Oct 14, 2019
  • LIC Life Insurance
    "Excellent Policy"
    0.5 5.0/5 "Blown Away!"
    There is no reason for choosing the life insurance policy from LIC. I hold a money back policy because every 5 years, i get the full money back to my account. I have been paying the premium amount of Rs. 1500 every month. I have no idea about the sum assured amount and the policy has a term of 15 years.
    Was this review helpful? 0
    , dindigul
    Reviewed on Oct 14, 2019
  • Exide Life Insurance
    "Good term policy"
    0.5 4.0/5 "Great!"
    I have chosen the life insurance policy from Exide because its easy approved term policy which covers Rs. 30 lakhs for any type of death. Its covers for both life and accidental. I have been paying the premium amount of Rs. 10,200 and i have chosen the yearly payment mode. This policy covers upto 52 years of my age.
    Was this review helpful? 0
    , gudivada
    Reviewed on Oct 13, 2019
  • LIC Life Insurance
    "Good Service"
    0.5 3.0/5 "Satisfactory"
    I have Life Insurance policy which was directly taken through LIC agent .This policy tenure is for 15 years and i am paying the premium within 6 months .I have got all the details about the insurance policy very clearly through the agent and paying the premium through agent.I am really satisfied with the service so far.
    Was this review helpful? 0
    , erode
    Reviewed on Oct 13, 2019
  • LIC Life Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    I'm getting the complete benefits in LIC. I took the life insurance policy 15 years back. I have been paying the premium amount of Rs.7000 for every six months once. They have offered me a term period of 20 years. I make the premium in their branch by cash.
    Was this review helpful? 0
    , sawai madhopur
    Reviewed on Oct 13, 2019
  • LIC Life Insurance
    "Good insurer"
    0.5 4.0/5 "Great!"
    I have taken a life insurance in LIFE INSURANCE CORPORATION OF INDIA on 5 months back. The policy is for 16 years and the policy name is Jeevan labh. I am paying premium in yearly package for nearly 30 thousands . While getting a policy my agent has given an information about the policy details. It covers up to myself. I visit directly to office to do the payment.
    Was this review helpful? 0
    , nellore
    Reviewed on Oct 13, 2019
  • LIC Life Insurance
    "Believable policy"
    0.5 4.0/5 "Great!"
    I bought the life insurance policy from LIC because we all believe in LIC and its undertaken by the Government. I bought the jeevan Anand policy. I am paying the premium amount of Rs. 1599 for every quarter. They are providing the sum assured amount of Rs. 2 lakhs. The policy term is 20 years.
    Was this review helpful? 0
    , bikaner
    Reviewed on Oct 13, 2019
  • LIC Life Insurance
    "Good insurer"
    0.5 3.0/5 "Satisfactory"
    I had taken a life insurance in LIC on 21 years before. The policy is for 15 years. I was paying premium on monthly package for the amount of 800 rupees. While getting a policy my agent has given an information about the policy details. I closed the policy and settled the amount on time.
    Was this review helpful? 0
    , tirupur
    Reviewed on Oct 13, 2019
  • Shriram Life Life Insurance
    "Need to decrease charges"
    0.5 5.0/5 "Blown Away!"
    I have taken a life insurance in SHRIRAM LIFE on 3 months before. The policy is for 10 years. I am paying premium in the yearly package of 15 thousands. There is some additional charges of 4.5% for GST. While getting a policy my agent has given an information about the policy details. It covers my whole family.
    Was this review helpful? 0
    , dharmapuri
    Reviewed on Oct 12, 2019
  • LIC Life Insurance
    "Good insurer"
    0.5 4.0/5 "Great!"
    I have taken a life insurance in LIC on 2 years before. The policy is for 20 years. I am paying premium in the quarterly package. While getting a policy my dad is an agent has given an information about the policy details. It is a jeevan anadha policy scheme. It covers up to myself.
    Was this review helpful? 0
    , mangalore
    Reviewed on Oct 12, 2019
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