The Coconut Palm Insurance Scheme (CPIS) is implemented by the Coconut Development Board under the Ministry of Agriculture and Farmers Welfare, Government of India. This scheme aims to safeguard coconut growers by insuring healthy, nut-bearing coconut palms against natural calamities, climatic risks, pests, diseases, and other perils that can lead to the death, loss, or unproductivity of the palms. The scheme covers all eligible coconut palms grown in contiguous areas—whether mono-cropped or intercropped—ensuring that growers receive timely relief in case of unexpected losses and are encouraged to replant and rejuvenate their coconut farming for sustainable income.
Objectives
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Risk Mitigation:
To provide insurance coverage against perils such as storms, hailstorms, cyclones, floods, pest infestations, accidental fire, earthquakes, drought, and more. -
Financial Security:
To offer immediate financial relief to coconut growers suffering income loss due to sudden death or unproductivity of coconut palms. -
Promotion of Replanting:
To encourage replanting and rejuvenation of coconut plantations, making coconut farming more remunerative. -
Comprehensive Coverage:
To extend global insurance coverage to all healthy, nut-bearing coconut palms within the prescribed age limits.
Applicability
- Palms Covered:
- Dwarf and Hybrid varieties: Palms aged between 4 and 60 years.
- Tall varieties: Palms aged between 7 and 60 years.
- Exclusions:
Unhealthy, senile, or palms not bearing nuts are excluded. Partial insurance of plantations is not allowed; every eligible palm in a contiguous area must be insured.
Risks Covered
- Natural perils including storms, hailstorms, cyclones, tornadoes, heavy rains, floods, inundation, and severe drought.
- Pest infestations and widespread diseases causing irreversible damage.
- Accidental fire (including forest or bush fires), lightning, earthquake, landslide, and tsunami.
- Other perils that may render the palm unproductive or lead to its death.
Premium & Subsidy Details
- For Palms Aged 4-15 Years (Dwarf/Hybrid):
- Premium per Palm/Year: ₹9
- Board’s Share (50%): ₹4.50
- State Govt. Share (25%): ₹2.25
- Farmer’s Share (25%): ₹2.25
- Sum Insured per Palm: ₹900
- For Palms Aged 16-60 Years:
- Premium per Palm/Year: ₹14
- Board’s Share (50%): ₹7
- State Govt. Share (25%): ₹3.50
- Farmer’s Share (25%): ₹3.50
- Sum Insured per Palm: ₹1,750
Premium Subsidy:
The Coconut Development Board (CDB) pays 50% of the premium, the State Government contributes 25%, and the remaining 25% is paid by the farmer. If the State Government opts out of its share, the farmer must pay 50% of the premium, with a minimum contribution of 10%.
Insurance Term
- The policy can be issued for a maximum period of three years.
- Premium rebate is available at 7.5% for a two-year policy and 12.5% for a three-year policy.
- Efforts are made to enroll all eligible farmers by 31st March each year; late enrollments cover risks from the 1st day of the succeeding month.
Claim Process & Coverage
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Claim Eligibility:
The policy pays for total loss of a palm due to insured perils leading to its death or unproductivity. -
Certification:
In cases where the death of a palm is not immediate, a certificate from the CDB or the relevant department is required to confirm unproductivity. -
Salvage Value:
If a farmer chooses not to fell an unproductive palm, a salvage value of 50% of the sum insured is deducted from the claim. -
Franchise Clause:
Claims are assessed only if losses exceed the franchise limit, which varies based on the number of insured palms in a contiguous area:- < 30 palms: 1 palm lost
- 31-100 palms: 2 palms lost
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100 palms: 3 palms lost
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Waiting Period:
No claim is payable for losses occurring within 30 days from the inception of the policy (not applicable in case of policy renewal without a time gap).
Application Process
Offline
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Collect Application Form:
Farmers wishing to insure their coconut palms must collect the application form from the authorized office of the Coconut Development Board or the designated Agriculture/Horticulture Department. -
Complete the Form:
Fill in all mandatory details on the application form. Affix a passport-sized photograph (signed across, if required) and attach self-attested copies of all necessary documents. -
Submit the Application:
Submit the completed application form along with the required documents to the concerned authority. Ensure the submission is within the prescribed period. -
Receipt of Acknowledgment:
Request a receipt or acknowledgment that contains the date, time of submission, and a unique identification number. -
Claim Process (if applicable):
In the event of a loss, notify the insurance company within 15 days with all relevant details and obtain certification of the loss from the CDB or the designated department.
Documents Required
- Passport-sized photograph (signed across).
- Valid identity proof.
- Proof of land ownership or relevant plantation certificate.
- Detailed record of coconut palms (including a rough sketch of the plantation with land identification numbers and palm counts).
- Bank account details.
- Any additional documents as required by the board.
Frequently Asked Questions
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What is the Coconut Palm Insurance Scheme (CPIS)?
It is a government insurance scheme designed to protect coconut growers by insuring their healthy, nut-bearing coconut palms against natural calamities and other perils. -
What are the objectives of this scheme?
The scheme aims to mitigate the financial losses of coconut growers by providing timely relief, encouraging replanting, and promoting sustainable coconut farming. -
Who is eligible for coverage under CPIS?
All healthy, nut-bearing coconut palms grown in contiguous areas by coconut farmers are eligible. For dwarf and hybrid varieties, palms aged between 4 and 60 years are covered; for tall varieties, palms aged between 7 and 60 years are eligible. -
How is the age range determined for coverage?
Age eligibility varies by variety: Dwarf and hybrid palms are covered from the 4th year onwards, while tall palms are eligible starting from the 7th year. -
Which areas and states are covered under the scheme?
The scheme is implemented in selected coconut-growing states and districts across India. -
How is this scheme implemented?
It is implemented by the Coconut Development Board in collaboration with state governments, insurance companies, and other relevant departments. -
How is the premium for CPIS determined?
The premium is determined based on the age group of the coconut palm and is shared among the Coconut Development Board (50%), the State Government (25%), and the farmer (25%). Adjustments may be made if the State Government does not contribute its share. -
Is there any premium subsidy provided to farmers?
Yes, a premium subsidy is provided—50% by the CDB and 25% by the State Government, reducing the farmer’s share to 25% or 50% if the state does not contribute. -
Is there a waiting period for coverage under CPIS?
Yes, there is a 30-day waiting period from the inception of the policy during which no claim is payable. -
What happens if a farmer wishes to retain an unproductive palm without felling it?
In such cases, a salvage value equal to 50% of the sum insured will be deducted from the claim amount. -
Is the insurance based on individual palms or the entire plantation area?
The scheme is based on individual palms; partial insurance of a plantation is not allowed. -
Can a farmer opt for partial insurance of their coconut plantation?
No, the insurance must cover all eligible palms in a contiguous area.