Q. Consider the following statements regarding “Agriculture Insurance Company of India Limited (AICIL)”:
1.It was responsible to look after the National Agriculture Insurance Scheme (NAIS).
2.It is jointly promoted by public sector insurance companies and development financial institutions.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C
Notes:

Explanation: The public sector insurance company, Agriculture Insurance Company of India Limited (AICIL) was set up by the Government of India in December 2002 (commenced its business in April 2003).

  • This is a dedicated agri insurance company and aims “to serve the needs of farmers better and to move towards a sustainable actuarial regime”.
  • This company was responsible to look after the National Agriculture Insurance Scheme (NAIS) which was launched in 1999.
  • Since January 2016, the company is looking after the newly launched PMFBY (Prime Minister Fasal Bima Yojana) which subsumed the existing agri-insurance schemes— the NAIS and the Modified NAIS (of 2010).
  • Till the AICIL was not set up, the agri-insurance responsibility of the government was being looked after by the General Insurance Corporation (GIC).
  • AICIL is jointly promoted by public sector insurance companies and development financial institutions—majority shares owned by the GIC (35 per cent) and NABARD (30 per cent) while the four public sectors general insurance companies own 8.75 per cent each in it.

Source: TMH Ramesh Singh