Agriculture is the largest source of livelihood in India with more than 50% of the population relying on agricultural income. These farmers and rural households involved in agricultural activities are protected by the Kisan Package Policy. The policy comprises 15 sections that comprehensively fulfil the insurance needs of different farmer categories, including poultry/duck and cottage industry farmers. Of the 15 sections in the policy, coverage of a minimum of 3 sections is compulsory for anyone taking on this insurance. The sections are further divided into Tariff/Market Agreement and Non-Tariff/Non-Market Agreement Sections. Read on to learn more.
Tariff/Market Agreement Sections of the Kisan Package Policy
Below are the classifications and coverage under the Tariff/Market Agreement sections:
Section I (a): Buildings and contents are covered against fire and burglary-related damage.
Section II: Loss of farm produce and unprocessed grains are covered.
Section VI: Destruction of artisans’ villages, cottage industries and biogas are covered.
Section IX: This section covers poultry and ducks against death or diseases.
Section XV: This covers the loss or damage of tractors and their accessories along with third-party liability.
Read the policy terms carefully to understand the sum insured to be paid for each of the hazards covered.
Non-Tariff/Non-Market Agreement Section of the Kisan Package Policy
Below are the classifications and coverage under the Non-Tariff/Non-Market Agreement sections:
Section I (b): Only home contents are covered against burglary and house damage.
Section III: Loss, theft, or damage of television set along with third-party liability is covered here.
Section IV: This section covers loss or damage to pedal cycle/cycle rickshaw. Bodily injury to the driver and property damage are also included.
Section V: This covers personal accidents, including third-party liability.
Section VII: This section covers death, disease, or accidents of cattle/livestock.
Section VIII: Centrifugal and submersible pump sets are covered for loss or damage.
Section X: Loss or damage to the baggage of the insured in an accident is covered.
Section XI: Animal-driven (horse, mule, bullocks, and bulls) carts along with third-party liability and driver’s death or disablement are covered.
Section XII: This section provides insurance to beehives and bee colonies against loss or damage.
Section XIII: Loss or damage to the insured’s gun along with third-party liability is covered.
Section XIV: This covers Mediclaim and hospitalisation expenses of the insured, except for domiciliary hospitalisation.
Section XVI: The insured’s two-wheelers are covered.
Make sure you understand the policy terms and the sum insured to be paid for each of the hazards covered by these sections.
Things to Remember
Remember these essential points before you consider buying the Kisan Package Policy.
The insured premises should not be a “kutcha” construction.
The coverage offered for fire and burglaries is only on a First Loss Basis. This is partial insurance since it is agreed upon that all property would be lost at once.
Claim settlements for Section I (building and contents), Section II (farm produce) and Section III (television set) are on a market value basis.
The age limit of the claimant must be between 5 and 65 years.
It is advisable to avoid insurance coverage for tractors that are 10 years old or older.
A special discount is available for the specific number of sections opted by a farmer. For instance, if you have opted for more than 6 and up to 8 sections (including the tariff and market agreements section), a 20% discount is provided on the premiums of non-tariff/non-market agreements.
