NICL National Insurance Company Limited
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 Insurance of Agri Credit
 
Introduction
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Under the directives of Federal Government, Crop Loan Insurance has been launched from Rabi season 2008-2009.
Premium of subsistence farmers for five major crops i.e. Wheat, Cotton, Sugarcane, Rice and Maze will be reimbursed by the Government.
NICL has developed comprehensive Agri-Loan Insurance schemes for production, development and livestock loans.
 
Insurance of NBP Agri Credit to Borrowers
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Insurance policy to National Bank of Pakistan was issued on 7th October, 2008 covering risk with effect from 15th October, 2008.
NBP target for disbursing Agri-loan for the year 2008-2009 is Rs. 40 billion.
Expected target to be achieved is 80% i.e. Rs. 32 billion of which estimated premium income would be around Rs. 480 million.
70% (i.e. Rs. 22.4 billion) of Rs. 32 billion is related to four major crops (i.e. Wheat, Cotton, Sugarcane & Rice) which will generate premium of about Rs. 336 million. Risks related to these four major crops are reinsured under 40% lead of Swiss Re.
 
Insurance of NBP Agri Credit to Borrowers
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Details of Covers Provided to NBP
Coverage:
» Production Loans (All Crops),
» Development Loans
» Livestock
Perils:
» Excessive Rain, Drought, Hailstorm, Flood, Cyclone, Earthquake Landslide and Lighting Endemic diseases, Viral attack Pest, Locust attack, Death & Disability Of animal, Canal breach, Accidental Death & Disability of borrower, Theft, Fire and Burglary, till produce Is shifted from farm
 
Basic Coverage
Production loans
Development loans
Livestock loans
 
Additional coverage with production loan (Per Crop)
Fire & Lightning
Theft & Burglary
Accidental Death of Borrower