Coconut Palm Insurance Scheme

The Coconut Palm Insurance Scheme is a program initiated by the Coconut Development Board, Ministry of Agriculture and Farmers Welfare, Government of India. It aims to provide insurance coverage to coconut palms against natural calamities, climatic risks, pests, diseases, and other perils.

• Assist coconut growers in insuring coconut palms, against natural and other perils.
• Provide timely relief to farmers, who suffer income loss due to sudden death of palms.
• Minimize risk and encourage replanting and rejuvenation to make coconut farming remunerative.

All healthy nut-bearing coconut palms in the age group of 4 to 60 years, whether grown as mono or intercropped, on bunds farms or homestead, and of all varieties including Tall, Dwarf, and Hybrids are eligible for coverage. Unhealthy and senile palms will be excluded.

For Dwarf and Hybrid varieties, coverage begins from the 4th year of planting, while Tall variety coconut palms are eligible for coverage from the 7th year onwards, up to the age of 60 years.

• This insurance scheme will be implemented in the selected districts of all the States/UTs, growing coconut palms.
• All bearing and healthy palms will be insured, in a contiguous area, by farmer/grower and every effort will be made by CDB, to get all bearing and healthy palms insured, in cluster villages of district(s).

The scheme is implemented through the Agriculture Insurance Company and collaborating State Governments in all coconut-growing states. Every effort is made by the Coconut Development Board to encourage farmers in cluster villages to insure all bearing and healthy palms in their respective districts.

The premium for CPIS is subsidized to make it accessible for farmers. The Coconut Development Board (CDB) contributes 50%, the State Government covers 25%, and the remaining 25% is the responsibility of the farmer or grower. In certain cases, if the State government does not agree to bear its share, the farmer may need to pay 50%.

Yes, there is a premium subsidy. The CDB and participating State Governments provide a subsidy amounting to 75% of the premium. The subsidy is released to the Insurance Company in advance based on estimates and is replenished/adjusted on a quarter/yearly basis.

Yes, there is a waiting period of 30 days from the inception of insurance during which loss or death of palms is not payable. However, this condition is not applicable for renewals without a time gap.

If a farmer/grower chooses to retain an unproductive palm without felling it, a salvage value of 50% of the sum insured will be deducted from the claim. Loss of the palm must be established through evidence of the occurrence of the insured peril.

Individual farmers or growers offering a minimum of 5 healthy nut-bearing palms falling within the specified age group are eligible for insurance. For Dwarf and Hybrid varieties, the age group is 4-60 years, and for Tall varieties, it is 7-60 years.

The insurance under CPIS is for individual palms and is not area-based. Each eligible palm must be individually insured.

No, partial insurance of the plantation is not allowed under the CPIS. The entire contiguous area or plot with a minimum of 5 healthy nut-bearing palms must be covered under the scheme.

The insured farmer or grower can self-declare the age group of the palms in the insurance proposal. However, the Insurance Company has the authority to verify the age of the insured palms at any time before the policy expires or a claim is paid. The insurance becomes void in case of a wrong declaration of age or any material fact by the insured regarding the insurance.

Farmers/growers desiring insurance may directly contact representatives/authorized agents of Insurance Company or may contact nearest office of Agriculture/Horticulture Department. Premium will be paid by farmer/grower, net off premium subsidy, through cash, cheque/bank draft, drawn in favour of Insurance Company.