Agriculture Insurance Company of India (AIC) will launch products for the livestock, aquaculture and sericulture sectors for which it has already obtained the licence from IRDAI, a top company official said on Wednesday.
AIC already has a 50 per cent market share in the crop insurance market under Pradhan Mantri Fasal Bimal Yojana (PMFBY) scheme which is run by the Centre and state governments.
"We have got the license for introducing insurance products for the livestock, aquaculture and sericulture sectors from the regulator IRDAI in last May. We will launch the products after developing them", CMD of AIC Girija Subramanian told reporters on the sidelines of an ASSOCHAM event here.
Formed in 2000, AIC has a capital base of Rs 200 crore, contributed jointly by GIC Re at 35 per cent, Nabard at 35 per cent and the balance by the four public general insurers, National Insurance, United India Insurance, New India Assurance and Oriental Insurance.
To a query, she said there is no immediate need to raise capital for the company.
While AIC needs to qualify through the bidding process to get business under the PMFBY, the insurance entity has also obtained the license for providing retail crop insurance.
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"Under this, the company needs to reach to the last mile farmer located in remote places. Developing this business will take some time", she said.
For the kharif season under PMFBY, the farmer needs to pay 2.5 per cent of the premium, while the remaining is to be paid equally by the Centre and the state government which has adopted it.
For the rabi season, the farmer needs to pay only 1.5 per cent of the premium.
AIC also bids in the tendering process of similar schemes of state governments which do not follow PMFBY, she added.
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