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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

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  • Kotak Life Life Insurance
    "Communication should be clear"
    0.5 1.0/5 "Really Bad"
    I was paying Rs. 5200 to Kotak General Life Insurance on month basis then I found there is no benefits. Yearly I am paying Rs. 60,000 I already paid it for 2 yeas, after 5 years they give only 20%. I wont recommend this policy, I am not happy with their service. There was no proper communication from their end.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Apr 24, 2019
  • LIC Life Insurance
    "Good Plan"
    0.5 5.0/5 "Blown Away!"
    For my Jeevan mithra plan, I would get the sum assured of Rs. 1 lakh , yearly I pay the premium around Rs. 6000 it has the term of 20 years. LIC gives financial security for certain demise and tax saving is there. They give some benefits along with the sum assured.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Apr 24, 2019
  • LIC Life Insurance
    "Its Good"
    0.5 5.0/5 "Blown Away!"
    I have Money back plan yearly I pay the premium of Rs. 25,000 it has the term of 20 years. Every four years I am getting Rs. 50,000 bonus interest, the agents are processional. I make the payment through paytm but they charge some fee for the transactions.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Apr 24, 2019
  • LIC Life Insurance
    "Improved the customer facilities for making the payment"
    0.5 5.0/5 "Blown Away!"
    Based on my own interest , I started to invest money for the future benefits in LIC . I started a plan for next 16 years , where I need to pay my premium on Half yearly basis . The premium will be directly debited from my account . LIC has improved the customer facilities for easier method of making the payment .
    Was this review helpful? 0
    , hyderabad
    Reviewed on Apr 24, 2019
  • LIC Life Insurance
    "Most trustable service"
    0.5 5.0/5 "Blown Away!"
    LIC is the most trust able service for investing our money . I taken a plan for next 21 years . I am paying an Half yearly premium for my policy . After the completion of 21 years , they will calculate the maturity amount and deposit to my savings account .
    Was this review helpful? 0
    , hyderabad
    Reviewed on Apr 24, 2019
  • LIC Life Insurance
    "Good "
    0.5 4.0/5 "Great!"
    I have taken 3 policies with LIC and have been using the service for past 9 years. The customer service is good. I am satisfied with the benefits. Its a long term plan for 20 years. Am paying the premium on monthly basis, its nearly Rs.3000. Its trustworthy.
    Was this review helpful? 0
    , bangalore
    Reviewed on Apr 24, 2019
  • LIC Life Insurance
    "Its Good policy"
    0.5 5.0/5 "Blown Away!"
    I have money back policy in LIC, for that I used to make the premium of Rs. 21,000 it has maturity period for 15 years. Every five years I used to get the bonus benefits. Agents are prompt and I have activated for the ecs from HDFC bank, there is no charges for the auto debit.
    Was this review helpful? 0
    , vadodara
    Reviewed on Apr 24, 2019
  • LIC Life Insurance
    "Its a good policy"
    0.5 5.0/5 "Blown Away!"
    Yearly I pay the premium around Rs.35,000 to LIC for one policy, it has tenure 15 years. I trust after the maturity period I would get the sum assure around Rs. 20,000. Even it has the financial security for the certain demise, I am very fine with them.
    Was this review helpful? 0
    , vadodara
    Reviewed on Apr 24, 2019
  • LIC Life Insurance
    "Good tax benefit plan"
    0.5 4.0/5 "Great!"
    I have purchased 2 policies with LIC and it was taken around 2 years. One is Jeevan Anand and other one is endownment policy. I have agent, who takes care of my policy. I guess, its one of the best plan. The premium was done through ECS in half yearly basis.
    Was this review helpful? 0
    , chennai
    Reviewed on Apr 24, 2019
  • LIC Life Insurance
    "Its Good"
    0.5 5.0/5 "Blown Away!"
    For one policy I pay Rs.7000 to LIC it has tenure around 20 years. I got the bond of the policy on time. I could viewthe payment details in LIC website they have developed alot and they are providing the life cover for accidental and natural death .
    Was this review helpful? 0
    , visakhapatnam
    Reviewed on Apr 24, 2019
  • LIC Life Insurance
    "Reputed company"
    0.5 5.0/5 "Blown Away!"
    LIC is old insurance company hence I believe it, I took 3 policies, for one policy I used to pay the premium cost of Rs.16,000 on yearly basis. I am not aware of the policy name but it has tenure of 15 years. Its going to mature in couple of year I took this plan for tax saving.
    Was this review helpful? 0
    , visakhapatnam
    Reviewed on Apr 24, 2019
  • LIC Life Insurance
    "Trust worthy"
    0.5 5.0/5 "Blown Away!"
    For one plan with LIC, I used to pay the premium around Rs. 18000 on yearly basis it has term of 15 years. The agent have recommended this plan, all policies are good for the tax saving. They are sending the alert message about the premium on time.
    Was this review helpful? 0
    , visakhapatnam
    Reviewed on Apr 24, 2019
  • LIC Life Insurance
    "Need to improve the benefits"
    0.5 3.5/5 "Pretty good"
    I have a life insurance policy with LIC and it was taken almost 3 to 4 years back. The benefits are average. It is a long term plan called JEEVAN ANAND. The tenure is 21 years and pay the premium through ECS. It is more convenient to make the premium. The service is average.
    Was this review helpful? 0
    , mumbai
    Reviewed on Apr 24, 2019
  • LIC Life Insurance
    "Excellent"
    0.5 5.0/5 "Blown Away!"
    I am happy with life insurance of corporation of India I have life insurance corporation of India last five years back, my plan is fifteen years , and this is single insurance. This is best customer service provided and response at a time and this is best insurance is all over insurance
    Was this review helpful? 0
    , new delhi
    Reviewed on Apr 23, 2019
  • LIC Life Insurance
    "Good Service"
    0.5 3.0/5 "Satisfactory"
    I have taken Life Insurance policy through LIC agent.The name of the policy is Jeevan Anand . The policy tenure is for 15year and 7years completed now .I have got the policy documents on time .There are grace period no extra charge if premium is paid on delay basis.I am paying the premium on yearly basis .I am paying cash payment will pay through branch .
    Was this review helpful? 0
    , new delhi
    Reviewed on Apr 23, 2019
  • Bharti Axa Life Life Insurance
    "GOOD"
    0.5 5.0/5 "Blown Away!"
    I am holding the TERM PLAN policy with the BHARTI-AXA LIFE INSURANCE where i am using it since from last many years. The sum assured amount with this policy is of 25L for the nominee. The policy maturity period is for long term. The premium paying for monthly once.
    Was this review helpful? 0
    , mumbai
    Reviewed on Apr 23, 2019
  • Max Life Insurance
    "GOOD"
    0.5 5.0/5 "Blown Away!"
    MAX LIFE INSURANCE is the insurance provider where i am holding the TERM PLAN with this policy, and using it since from last 6 years. The policy has the maturity period of this policy is for 70 years of the age. The premium paying for monthly once.
    Was this review helpful? 0
    , mumbai
    Reviewed on Apr 23, 2019
  • LIC Life Insurance
    "long lasting investing plan "
    0.5 4.0/5 "Great!"
    For my family benefit, I taken a investment plan in LIC for next twenty years . I need to pay an amount of 8000 rs per annum. They will send me the debit message after the money has been deducted from my account . I got the physical copy for my insurance policy when I started the plan .
    Was this review helpful? 0
    , hyderabad
    Reviewed on Apr 23, 2019
  • LIC Life Insurance
    "Need to improve the benefits"
    0.5 3.0/5 "Satisfactory"
    The benefits are too less in LIC as compared to other insurer. I have taken 3 to 4 policies through agent, he is very helpful. I use to pay the premium through cheque, its around 50K in a year. I have opted for a long term policies and the sum assured is less.
    Was this review helpful? 0
    , kolkata
    Reviewed on Apr 23, 2019
  • Max Life Insurance
    "Good service"
    0.5 4.0/5 "Great!"
    Max life is also good and the premium is reasonable for the life insurance. I took a short term plan and the tenure is 10 years. The customer services are good. I make the premium through ECS, it was around 70,000 rupees per annum for two policies.
    Was this review helpful? 0
    , kolkata
    Reviewed on Apr 23, 2019
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