ICICI [Get Quote] Lombard General Insurance has launched a weather insurance policy for grape cultivators in Pune to help them minimise financial loss and safeguard their production costs from a possible crop failure owing to uncertain weather conditions.

ICICI Lombard weather insurance for grapes, which will be applicable for 10 months from June 1, 2006 to March 31, 2007, has been scientifically designed on the basis of the historical temperature and rainfall data, said Pranav Prashad, head -- rural and agriculture business group.

A salient feature of the policy is that the compensation amount delivered at the farmers' doorstep without having to file for a claim in case of losses, Prashad said.

A single policy unit has been designed keeping in mind the input costs for one acre of cultivated land, which is approximately Rs 100,000 for export-oriented grape fields and Rs 50,000 for domestic grape fields.

Hence, the sum insured per policy unit is Rs 50,000. Farmers growing grapes for exports can buy two units or more.

The insurance for grapes would cover policyholders against six principle weather perils related to rainfall and temperature, including excessive rainfall, deficit rainfall, continuous rainfall, unseasonal rainfall, high temperature and diurnal temperature in seven different phases.

The compensation would be separate for each phase and would be subject to a maximum limit of the sum insured for that particular peril or time period.

ICICI Lombard will pay compensation within 45 days of expiry of the cover period, without having to file for the claims, Prashad said. The compensation is calculated based on the weather data collected from the weather stations and claim amount is directly issued.

Prashad said the weather data would be regularly procured by the Indian Meteorological Department station or other weather stations established by National Collateral Management Services and submitted to a professional weather data-cleaning and enhancing agency for verification.

Being among the first insurance company to offer crop insurance, ICICI Lombard offers weather insurance for various crops including cotton, soybean, paddy, wheat, and oranges in various states including Maharashtra, Andhra Pradesh, Tamil Nadu or Rajasthan.

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