Kisan Suvidha Bima: Coverage, Claim & Exclusions

Updated: 28-08-2023 11:37:14 AM

Being a pro-agro country, it makes sense to safeguard the finances of the backbone of this nation, i.e. the farmers and individuals/group involved in agriculture. Thus, Kisan Suvidha Bima is an insurance catering to the needs of this sector.

What Is Kisan Suvidha Bima?

Kisan Suvidha Bima is a rural insurance policy meant to ensure sustainable income and security to farmers and people involved in agricultural activities in India. This policy is beneficial for rural growth because it covers assets, interests and even critical illnesses and accidents of the policyholder and his/her family.

What All Kisan Suvidha Bima Covers?

Kisan Suvidha Bima is an agricultural scheme for farmers and rural households who work in the farming sector. This insurance policy has six sections which include the following eventualities:

• Section 1: Property damage caused by earthquakes, storms and floods
• Section 2: Property damage caused by perils like theft, house breaking
• Section 3: Risks associated with the stock kept in the insured premises, including damage caused due to fire or vandalism
• Section 4: Monetary benefit in case of temporary or permanent disability or death to both the insured and his/her family members
• Section 5: Hospitalisation expenses of the insured or the family members due to critical illness
• Section 6: Comprehensive coverage to the damaged or lost farming vehicles like tractors, etc.

How Kisan Suvidha Bima Functions?

• One must make sure whether they are eligible for this policy or not
• After proper consideration, submit the application form to the provider which in turn will do the proper verification of details and accordingly decide the premium and the sum insured
• After the commencement of the policy, you (the policyholder) will be required to pay the premium on an yearly basis
• At the occurrence of the need of the claim to be raised, the same should be brought to the notice of the insurance company in writing as soon as possible
• If the claim is found to be an honest one, company shall settle the same within the stipulated time, else will reject it

Eligibility Criteria

• Individual farmers/joint borrowers, partnership firms along with private and public limited companies who are engaged in farming and/or allied services
• Farmers cultivating on authorised leased lands
• GPA holders

Kisan Suvidha Bima Claim Process

In case there arises a situation when you need to make claims, then you should follow the below mentioned steps to make claims:

• The insurance company must be immediately informed about the occurrence of the incident
• In case of theft or criminal act, FIR needs to be lodged
• All necessary documents need to be submitted
• The claim settlement is either in the form of money or repair/reconstruction work done by the insurance company
• If the claim is found to be false, or if there is any misrepresentation of the incident, the insurance company can terminate the policy
• If the insured has any issues with the claim or policy rejection, he/she can raise the case in the court of law

Documents Required For Claim Process

• Claim form, duly filled and signed
• Photocopy of the insurance policy
• Details of the loss or damage which took place
• In case of death of the insured, a photocopy of the death certificate
• In case of theft or any criminal act, a copy of the lodged FIR

How Long Does It Take To Pay Out The Claim?

The claim amount is paid within 30 days of claim intimation. If the claimant is not satisfied with the compensation amount or resolution and a dispute is raised in the court of law, then it might take more time.

Cases Where You Can’t Claim Kisan Suvidha Bima (Exclusions) 

While Kisan Suvidha Bima offers risk coverage to major incidents, the insurance company is not liable to provide any compensation due to the following cases:

• Damage to money or documents
• Damage to precious stones, bullion or stamps
• Accident or life risk to any livestock or pet
• Damage caused by regular cracking or corrosion by river water
• Damage caused to the property during repair or alteration done to it
• Trees, shrubs and growing matter within the insured premises
• Intentional damage caused or proper care was not taken by the policyholder to prevent the mishap
• If the insured premises is ‘kutcha,’ that is made of mud and thatch instead of bricks and cement
• Damage by rainfall, fire or burglary if the insured stock was kept in open air
• Hazardous or explosive articles within the insured property
• Tractors which are in use for 10 years or above

Companies Offering Kisan Suvidha Bima In India

India is an agricultural country where it is important to take care of the farmers and their needs. Keeping this point in mind, some insurance companies in India offer Kisan Suvidha Bima. They are:

• IFFCO Tokio
• Canara Bank, etc.

Important Aspects

To get the best deal, policyholders must keep the following points in mind before opting for Kisan Suvidha Bima:

• Coverage is offered to the insured tractors as per the Indian Motor Tariff, Class D. (section for miscellaneous vehicles)
• The insurance coverage due to fire and burglary is on the First Loss Basis. There is a capping of 50% of the total sum insured
• Applicant must not be a defaulter in any financial institution

Advantages of Buying a Kisan Suvidha Bima 

Kisan Suvidha Bima is a single package which offers following benefits to the policy holders:

• Repair or reconstruction of damaged property of the policyholder
• Quick and easy settlement policy; the compensation amount is paid directly to the beneficiary account
• Comprehensive compensation to both, policyholder’s and 3^rd party tractors in case of loss or damage on the insured property

FAQs

Q1. Who can cancel the Kisan Suvidha Bima?

Both the insured and the insurer can terminate the policy by sending a 15-day notice.

Q2. What is the cancellation period for Kisan Suvidha Bima?

The policy holder can cancel this policy by sending the written notice to the insurance company which in turn will refund the amount on the following  short period scale:

Cancellation Period	Refund
Within 1 week of inception of the cover	25% of premium
Beyond 1 week but within 15 days	12.5% of premium
Beyond 15 days of inception	Nil

Q3. What is the basis of claim settlement in Kisan Suvidha Bima?

Claim is settled at the market value of the insured property at the time of damage.

Q4. Is there any extension to the policy?

Yes. Damage to the insured property due to natural calamities like earthquakes can be covered by paying additional premium.