The Agriculture Insurance Company of India Limited has partnered with Gramcover, a rural insurtech startup to collectively enhance rural insurance penetration. By utilizing the data that Gramcover has in the rural insurtech space, this partnership aims to target 25 million farmers throughout the aspirational districts.
AICIL and Gramcover will work collectively on market research to identify and develop need-based rural insurance products to guard the livelihood of the farmers against all insurable risks, thereby extending comprehensive insurance coverage in rural parts of India.
Under this MoU, Gramcover will work on market research and identification of extensively grown crops and need-based rural insurance products. It will even work on the feasibility report to assess the suitability, requirement, and affordability of insurance products in every aspirational district. Gramcover will explore marketing and distribution channels in each aspirational district and Integration of underwriting process and claim settlement protocols i.e. from Market requirements to Issuance of Policies to Claim Settlement.
With Gramcover, Agriculture Insurance Company of India Limited 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.
On the partnership, 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 gets reduced. This is the final frontier of financial inclusion and we think through our effort, due to Gramcover’s reach and AICs catchment, we will reach 25 million farmers.” Dhyanesh Bhatt, Co-founder and CEO of Gramcover stated, “I am excited about this partnership which will allow us to co-create retail, non-subsidised insurance products for rural India , especially the Indian farmer. 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.”