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Agriculture Insurance Company of India Limited, 13th floor, Ambadeep Building, K.G. Marg, Cannought Place, New Delhi, 110001, Ph: 011-41081991-94, Fax: 011-41081995-96, firstname.lastname@example.org, had added one more product to their growing basket, in the form of ‘Bio Fuel Tree / Plant Insurance’. This is first annual policy with scope to cover as many as six different species of trees / plants cultivated for commercial production of bio-fuel, including Pongamia Pinnata, and can be marketed through out the year. The premium rate charged may vary from 1.0% - 2.0% for basic risks (based on standard fire policy + specified pests & diseases) and 0.50% - 1.0% cover against damage due to drought / prolonged dry spells. The exact rate would depend on the inspection of the risk at site. The Policy period is annual, with a provision to go for policy of 3 or 5 years duration.
This policy is subject to the terms, for Biofuel plants like Jatropha, Mahua, Karanj (Pongamia), Polanga (Callophyllum), Simarouba and Neem. The policy is applicable if Plantation is destroyed or damaged (leading to death of the plant or making the plant economically unproductive) during the currency of the policy directly due to:
These occurrences either in isolation or concurrently, during the period of insurance stated in the said schedule or during any subsequent period in respect of which the insured shall pay and the company shall accept the premium required for the renewal of this policy, the Company will pay to the insured an amount as defined and in the manner and to the extent described herein as per the Biofuel Tree / Plant insurance policy and as per the indemnity procedure at the time of happening of the destruction or damage, but in no case exceeding the total sum insured stated in the said schedule. (Acreage under each Survey number and exact location is as per location demarcated to the proposal), subject to the conditions described below:
Provided always that due observance and fulfillment of the terms, conditions and exceptions of this policy in so far as they relate to anything to be done or complied with by the insured and the truth of the statements and answers in the proposal shall be deemed to be a condition precedent to the right of the insured to recover hereunder. The Schedule shall be deemed to be incorporated in and shall form part of this policy and the expression "this policy" wherever used in the contract shall be read as including the Schedule. Any word or expression to which a specific meaning has been attached in any part of this policy or of the Schedule shall bear the same meaning whenever conditions may appear.
General Exceptions : The company shall not be liable in respect of Loss or damage to plant or fruits or liability caused by or arising from or in consequence, directly Or indirectly due to:
During the period of this policy, the insured should possess all rights with regard to the agricultural land and the Biofuel trees / plants cultivated as specified by the insured in the Schedule to the policy. The insured shall provide to the company such title deeds and other documents as may be required by the company for verification of his/her interest over the insured property. The due observance and fulfillment of the above shall be a condition precedent for settlement of any claim under this policy.
The insured shall take all reasonable steps to safeguard his farm / plants from loss or damage and to maintain plants in efficient condition and the company shall have at all times free and full access to examine the plants or any part thereof. It is the duty of the insured to take necessary precaution for plant protection and follow the recommended cultural or package of practices in the event of perils affecting the filed. It will be the duty of the insured to take reasonable steps to avert or minimize the loss of any nature arising out of the insured or uninsured peril.
This policy and the schedule shall be read together and any word or expression to which a specific meaning has been attached in any part of this policy or of the schedule shall bear the same meaning wherever word may appear.
The due observance and fulfillment of the terms, conditions and endorsements of this policy in so far as they relate to anything to be done or complied with by the insured and the truth of the statements and answers in the said proposal from shall be conditions precedent to any liability of the company to make any payment under the policy.
If at the time any claim arises under this policy, there is any other existing insurance covering the same property against same loss or damage, the company shall not be liable to pay or contribute more than its ratable proportion of any loss or damage, compensation costs or expenses.
The insured shall keep an accurate record containing all relevant particulars and shall allow the company to inspect such record. The insured shall within one month after the expiry of each period of insurance furnish such information as the company may require.
Any of the circumstances in relation to these conditions coming to the knowledge of any official of the company shall not be the notice to or be held to bind or prejudicially affect the company notwithstanding subsequent acceptance of any premium.
The company shall not be bound to notice or be affected by any notice of any trust, charge, lien, assignment or other dealing with or relating to this Policy but the receipt of the Insured or his legal personal representative shall in all cases be an effectual discharge to the company.
Any special provisions subject to which this Policy has been entered into and endorsed in the Policy or in any separate instrument shall be deemed to be part of this Policy and shall have effect accordingly.
Condition of Average: The insured is expected to insure the entire acreage under plantation in any given location, failing which if claim arises, the claim will be settled in the proportion insured acreage bears to total acreage.
If the claim be in any respect fraudulent or if any false declaration be made or used in support thereof, or if any one acting on his behalf to obtain any benefit under this policy or if the loss or damage be occasioned by the willful act or with the connivance of the insured, all benefits under this policy shall be forfeited.
Any dispute concerning to interpretation of the terms, conditions, limitations and/ or exclusions contained herein is understood and agreed to by both the insured and AIC to be subject to Indian Law. Each party agrees to submit to the exclusive jurisdiction of the High Court of New Delhi and to comply with all requirements necessary to give such Court the jurisdiction. All matters arising hereunder shall be determined in accordance with the law and practice of such Court.
The company may cancel this policy by sending seven day's notice by registered letter to the insured at his last known address and in such event return to the insured the premium paid less the pro-rata portion thereof for the period the policy has been in force or the policy may be canceled at any time by the insured on seven day's notice and (provided no claim has arisen during the current period of insurance), the insured shall be entitled to a return of premium less premium at the company's short period rates for the period the policy has been in force. The short period rates shall be as follows:
Arbitration: If any difference shall arise as to the quantum to be paid under this policy (liability being otherwise admitted), such difference shall independently of all other questions be referred to the decision of an Arbitrator to be appointed in writing by the parties in difference or if they cannot agree upon a single arbitrator, to the decision of two disinterested persons as arbitrators of whom one shall be appointed in writing by each of the parties within two calendar months after having been required so to do in writing by the other party in accordance with the provisions of the Arbitration and Conciliation Act, 1996 as amended from time to time and for the time in force in case either party shall refuse or fail to appoint arbitrator within two calendar months after receipt of notice in writing requiring an appointment the other party shall be at liberty to appoint sole arbitrator and in case of disagreement between the arbitrators the difference shall be referred to the decision of an umpire who shall have been appointed by them in writing before entering on the reference and who shall with the arbitrators and preside at their meetings.
It is also hereby further expressly agreed and declared that if the company shall disclaim liability to the insured for any claim hereunder and such claim shall not within 12 calendar months from the date of such disclaimer have been made the subject matter of a suit in a court of law, then the claim shall for all purposes be deemed to have been abandoned and shall not thereafter be recoverable hereunder. In no case whatsoever shall the company be liable for any loss or damage after the expiration of 12 months from the happening of the loss or damage, unless the claim is the subject of pending action and / or arbitration.
This insurance shall cease to attach if the interest in the subject matter of insurance passes from the insured to anyone otherwise than "WILL" or operation of law.
ONUS OF PROOF: In the event of the insured making any claim for loss or damage under this policy he must (if so required by the company) prove that the loss or damage was occasioned by or through or in consequence of the peril covered.
The insured shall maintain all farm records, plant population and pest / disease occurrence records and furnish the same at the time of loss.
Customer Service: If at any time the Insured requires any clarification or assistance, the Insured may contact the offices of AIC at the address specified, during normal business hours.
Grievances: In case the Insured is aggrieved in any way, the Insured may contact the company at the specified address, during normal business hours.
LOSS ASSESSMENT PROCEDURE : The insurance herein is by way of indemnity against pecuniary loss suffered by the insured in respect of the cost of inputs (agreed value) on account of the total loss or damage to the trees / plants by the insured perils specified in the policy. Policy shall not apply to the loss of yield / production of the tree / plant resulting from insured perils. Total loss shall mean loss or damage to individual Biofuel plant or entire plantation or part thereof leading to death of the plant or making the plant economically unproductive.
The total cost of inputs per unit area of insurance covered (sum insured) under this Policy shall be deemed to be equivalent to the 'cost of inputs', corresponding to age of the plantation. Sum Insured can go up to 125% / 150% of the 'input cost' at the discretion of the insurer. The insurable age and age-wise 'input cost' is provided below:
Losses during the 1st year would be dealt as per the cost of inputs indicated in the Table given below:
Loss Assessment : On occurrence of any insured perils leading to the total loss of damage to the plant /plants the insured has to submit the claim form to Agriculture Insurance Company of India Limited (AIC). AIC shall send a licensed surveyor along with an Agriculture Expert to the field for assessing the loss to facilitate claim processing. For the purpose of claims, death / totally damaged plants making the plant economically unproductive shall be considered as loss under the policy. Decline and / or retardation of growth shall not be deemed as loss.
At all times during the period of insurance of this policy the insurance cover will be maintained to the full extent of the respective sum insured in consideration of which upon the settlement of any loss under this policy, pro-rata premium for the
un-expired period from the date of such loss till the expiry of period of insurance in proportion of the amount of such loss paid, shall be
payable by the insured to the company. The additional Premium referred above shall be deducted from the net claim payable under the policy.
Excess : The Insured shall bear first 10% of the assessed claim amount of each and every loss.