AICIL, Gramcover to jointly ensure better insurance penetration in rural India
The partnership aims to target 25 million farmers through its products
The Agriculture Insurance Company of India Limited has joined hands with Gramcover, a rural insurtech startup to collectively enhance rural insurance penetration. By utilising the expertise of Gramcover in the rural insurtech space, this partnership aims to target 25 million farmers across the aspirational districts.
AICIL and Gramcover will work together on market research to identify and develop need-based rural insurance products to protect 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 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 in each aspirational district and Integration of the 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 the 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 the 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, “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.”