Agriculture Insurance Company of India Limited (AIC), a specialty general insurer, was incorporated in December 2002 and started its operations in April 2003. The creation of the Company can be attributed to the announcement made by the then Union Finance Minister in his Budget Speech FY-2002-03. The motto was to set up an Organization to exclusively cater to the insurance needs of the farming community. Since then the Company has been undertaking efforts to maximize crop insurance penetration level. The company during 2010-11 is estimated to insure over 40 million hectares of cropped area grown by about 30 million farmers under its two flagship products, viz. National Agricultural Insurance Scheme (NAIS) and Weather Based Crop Insurance Scheme (WBCIS). The efforts of the Company have made it reap the rewards like “INNOVATION OF THE YEAR AWARD” for 2008 at 12th Asia Insurance Awards Ceremony. The company is regarded both at national and international level as the pioneer of many innovative and creative insurance concepts.

AIC has a focused attention to address the insurance needs of the Indian farmers for a financial insulation in the event of crop losses occurring due to natural calamities. The crop insurance schemes of AIC are farmer-friendly and rooted in ground realities.  The different schemes/products are designed to allow all cultivators either landed or landless, including sharecroppers or tenant farmers to avail insurance coverage.
   

The year 2009-10 is of special significance in the history of AIC as the Gross Direct Premium (GDP) during 2009-10 has touched 4-digit figure and closed at Rs. 1520.40 crore, as against Rs. 833.44 crore during the previous year, registering an accretion of Rs.686.96 crore, the Growth Rate being 82.42%. During 2010-11 the company is expected to write a premium of around Rs. 2000 crore.

AIC has been designated by the Government of India as its sole “Implementing Agency” for implementing Government sponsored National Agricultural Insurance Scheme (NAIS).   Apart from NAIS, two other government schemes, viz. Weather Based Crop Insurance Scheme (WBCIS) and Modified National Agricultural Insurance Scheme (MNAIS) are being implemented on pilot basis by AIC along with a few private insurers.   Crop insurance products emerge out of generic as well as specific risks in the entire agricultural process. At AIC, the development of a crop insurance product is done through extensive research and analysis. AIC’s products are rural oriented thus the Company is well acquainted with the difficulties in reaching out to difficult geographies of rural markets and the high cost of distribution.  The basket of AIC’s product includes, besides the above schemes, the following –
1.    Varsha Bima               
2.    Rainfall Insurance
3.    Potato Insurance               
4.    Mango Insurance       
5.    Generic Weather Insurance(Rabi)       
6.    Coffee Insurance
7.    Bio-fuel tree/plant insurance       
8.    Coconut Palm Insurance
9.    Rubber Plantation Insurance