Coconut Palm Insurance Scheme (CPIS)

What is the Coconut Palm Insurance Scheme?

The Coconut Palm Insurance Scheme (CPIS) is a scheme of the Coconut Development Board (CDB), a statutory body under the Ministry of Agriculture and Farmers Welfare, implemented with the Agriculture Insurance Company of India. According to the scheme profile, CPIS is meant to stabilise the income of coconut growers by insuring healthy, nut-bearing palms against loss from natural calamities, pests and disease - risks that can wipe out standing palms in a single storm or outbreak.

The distinguishing feature of CPIS is its heavily subsidised premium. The grower pays only 25 percent of the premium; the Coconut Development Board pays 50 percent and the participating state government pays 25 percent. The scheme runs in states and union territories where coconut is cultivated, and its coverage in a given year depends on the state joining and sharing its part of the premium.

Who is eligible for the Coconut Palm Insurance Scheme?

A grower can insure palms if:

• The grower has at least 5 healthy nut-bearing palms in a contiguous area.
• The palms are within the eligible age band:
• Dwarf and hybrid palms: 4 to 60 years.
• Tall palms: 7 to 60 years.
• All eligible palms in the holding are offered for insurance - the scheme does not allow insuring only a part of the plantation.

Who cannot insure palms:

• Growers with fewer than 5 palms.
• Palms outside the eligible age band, or that are diseased or non-bearing.
• Growers who want to insure only some of their eligible palms while leaving others out.

How much does the scheme cost and cover?

According to the CPIS product profile, both the premium and the sum insured depend on the age of the palm:

The sum insured is the maximum payable per palm lost, and the claim depends on how many insured palms are lost in a covered event. Because the Board and state pay 75 percent of the premium between them, the grower's out-of-pocket cost is only the 25 percent share - as low as around Rs 9 to Rs 14 per palm before the subsidy split is applied.

What risks are covered?

CPIS covers the loss of palms from a wide set of perils, which typically include:

• Natural calamities - storm, hailstorm, cyclone, typhoon, tornado, flood and inundation.
• Fire and lightning, and earthquake, landslide and tsunami.
• Severe drought and consequent palm death.
• Pest attacks and diseases that destroy the palm.

Exclusions generally include losses from theft, war and wilful damage, and palms that are already diseased, non-bearing or outside the eligible age band. Growers should read the policy wording for the exact list of covered and excluded perils in their state.

What documents are required?

How to apply for the Coconut Palm Insurance Scheme

1. Confirm the scheme is running in your state for the current year - CPIS operates only where the state government participates and shares the premium. Check with the Coconut Development Board or your local agriculture office.
2. Count and record your eligible palms - at least 5 healthy nut-bearing palms within the eligible age band, and note that all eligible palms in the holding must be offered.
3. Enrol through the designated insurer or CDB channel, submitting palm details, ownership proof, ID and bank details.
4. Pay your 25 percent share of the premium before the annual cut-off, usually 31 March, to keep the palms covered for the year.
5. Report any loss promptly - typically within about 15 days of the event - so the insurer can assess and settle the claim.

Help and contact

• Coconut Development Board (head office, Kochi): 0484-2377266
• Official portal: coconutboard.gov.in

CPIS operates state by state and its premium rates, sum insured and enrolment window are reviewed periodically, so growers should confirm current terms and the designated insurer with the Coconut Development Board or their state agriculture department before enrolling.