Cardamom Plant & Yield Insurance is a mechanism for providing effective risk management aid to those growers who are likely to be impacted by non-preventable natural factors, pests & diseases, etc. Initially, the insurance is available in Kerala, Tamil Nadu, Karnataka and Sikkim.

Coverage
The insurance covers losses/damage of cardamom yield and/or cardamom plants (bushes) arising out of non-preventable natural factors under section – I and section – II of the policy. The grower has option to go for either Section – I or Section – II, or both.

Section I: Insurance of Cardamom Yield:
The insurance compensates the insured against the likelihood of diminished output /yield resulting from non-preventable natural perils. The insurance operates on "Area Approach' basis at Block/Taluka/Village level.

Section II: Insurance of Cardamom Plant
The insurance compensates the insured in the event of total loss of the individual plants in the insured plantation from 2nd year to the 12th year. For immature plants, a waiting period of 365 days from the date of planting shall apply. The insurance coverage and claim assessment shall be on individual plant basis. The insurance is against perils like Storm, hail storm, cyclone, typhoon, tornado, heavy rains in the area, flood and inundation, specified pests and diseases of widespread incidence, fire including forest fire and bush fire, lightning, Earthquake, landslide, Riot, Strike, Severe drought and consequential total loss, and Damage due to wild animals, provided the field/farm is adequately fenced / protected.

Sum Insured: For section – I (Yield), Sum Insured varies from area to area and is determined by the Guaranteed Yield of the Insurance unit multiplied by the previous year's weighted average price in the respective district (communicated by Spices Board).

For section – II (Total loss of plant), Sum Insured is based on the average input cost of the plantation according to the age and variety of the plantation.

Premium: Premium rates are actuarially calculated.

Period of Insurance: The policy period shall be for one year from the inception of risk.

Loss Assessment: Compensation for the loss in yield shall be worked out by AIC on the basis of yield data provided by the Spices Board. Compensation for loss of plants shall be payable only if there is a loss of 25 plants or more per hectare.