The Agriculture Insurance Company of India Limited has joined hands with Gramcover to collectively enhance rural insurance penetration. It will achieve this by utilizing the expertise of Gramcover in rural insurtech space; this partnership aims to target 25 million farmers across the aspirational districts.
Under the MoU, Gramcover will work on Market research and identification of widely grown crops and need-based rural insurance products. It will also work on the feasibility report to assess the suitability, requirement and affordability of insurance products in each aspirational district. Gramcover will explore marketing and distribution channels and integration of underwriting process, and claim settlement protocols, i.e., from Market requirements to issuance of policies to claim settlement.
The Agriculture Insurance Company of India will work on development of need-based rural insurance products and streamline the underwriting process and channel Partner App. It will integrate the underwriting process and claim settlement protocols from Market requirements to issuance of policies to claim settlement. AICIL will also improve the claim payment turnaround time and develop underwriting and claim settlement protocols to ensure adequate capture of risk, ease of sale and quick settlement of claims.
Jatin Singh, MD and Founder of Gramcover, said there is a need to vastly expand rural insurance as there is minimal coverage in rural India. “The insurance products of rural India lack diversity and therefore the number of people covered under these products get reduced. This is the final frontier of financial inclusion and we think through our effort, due to Gramcover’s reach and AIC catchment, we will reach 25 million farmers.”
Dhyanesh Bhatt, Co-Founder and CEO of Gramcover, expressed excitement about this partnership. “We should be able to create significant impact in the coming years as we bring various rural relevant product like Parametric insurance, price insurance, livestock insurance etc to the rural customer at scale in a sustainable manner, thus increasing their financial resilience.”
Till now, Gramcover has enabled over 1.3 million Indian farmers with insurance through its vast unique technology led distribution and servicing model. The company has customers in six states, 28 districts and 8,000 villages. Gramcover is backed by top investors – Omnivore, EMVC, Flourish and Omidyar Network India. Gramcover has recently launched parametric insurance which is a customisable product, based on the crop season and crop type.