Presented by

C. Laltlanmawia

B.F.Sc

Fisheries Activities in marine and inland areas involve risks- asset, production, management, market and health risks.

Insurance is considered as an important tool in the risk management.

Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment.

It is a form of risk management.

The insurance market in India is divided into two categories – life insurance and general insurance.

Life insurance - Life Insurance Corporation of India

General insurance - General Insurance Corporation of India.

After liberalization(1999)- more than 35 private sector companies involved in the provision of life and general insurance services.

4 subsidiaries of GLC

1. United Indian Insurance Co –Chennai

2. National Insurance Co – New Delhi.

3. Oriental Insurance Co – Kolkata

4. New Indian assurance Co – Mumbai

2 insurance scheme: designed to assist aquaculture sector in 1990’s

1. The Brackish Water Shrimp Insurance Scheme.

2. The Inland Fish Insurance Scheme.

In 2003, Agricultural Insurance Company of India ltd (AIC) established.

The National Federation of Fishermen Co-operatives Ltd (FISHCOPFED)

Kerala State Cooperative Federation for Fisheries Development Limited(Matsyafed)

NGOs

South Indian Federation of Fishermen Societies (SIFFS)

Trivandrum District Fishermen Federation (TDFF).

The number of shrimp insurance policies is estimated ‹25 in 2005. Effect in Andhra Pradesh

The Inland Fish Insurance Scheme mainly operates within Andhra Pradesh. The number of policies in force is estimated to be less than 50.

Oriental Insurance Company provided hull insurance coverage to over 600 fishing vessels in 2006.

United India Insurance Company also covered few hundred fishing vessels.

SIFFS and TDFF provide fishing vessel insurance to some thousands of members.

Life (and disability) insurance schemes for fisherfolk in India are concerned, the number of policies in force is very large.

The Oriental Insurance Company (through FISHCOPFED) provided group accident insurance for active fisherfolk to over 1.3 million fishers.

Matsyafed implements personal accident insurance, covered some 40 000 fisherfolk in 2006.

South Indian Federation of Fishermen Societies (SIFFS) provide crew insurance policy- over 3 300 crew members were covered (2006–2007).

Brackish Water Shrimp Insurance Scheme:

Summer kill, pollution from external sources, poisoning, riots and strikes, malicious acts by third parties, earthquakes, explosions, storms, tempests, cyclones, typhoons, floods, inundations, volcanic eruptions and other convulsions of nature, terrorism, aircraft and other aerial devices or articles dropped from the air, shell disease, vibriosis, aeromonas, celidas and other viral infections of epidemic or parasitical nature.

Additional cover like death of the stock due to diseases.

Oriental Insurance Company

• fire or explosion

• jettison

• piracy

• breakdown of or accident to nuclear installations or nuclear reactors

• contact with aircraft or similar objects

United India Insurance Company

• fire or explosions

• stranding, sinking, collision, and salvage charges.

South Indian Federation of Fishermen Societies (SIFFS)

• Total loss of either boat or engine or both at sea or on shore;

• Total loss of fishing nets. Tackles on shore due to any perils, such as storm, tempest, flood and inundation and riot, strike and malicious damage.

• Fishing nets kept on shore against major perils, fire or natural catastrophe, resulting in total loss.

Brackish water shrimp insurance scheme- Penaeus sps. Includes various stages in life cycle.

Inland fish insurance scheme- Fry, fingerlings, grow-out fish and brood-stock of a large range of freshwater species (carps, catfish,etc ).

Insured growing systems.

SIS- ponds and tanks.

IFIS- pond and land reservoirs.

• The Oriental Insurance Company has general hull and machinery policy that covers offshore fishing vessels. Provided annual policy coverage for 603 fishing vessels. Insurance premiums collected in 2006 on fishing vessel amounted to INR49 million.

• The United India Insurance Company provides marine hull insurance that covers small-scale fishing vessels, commercial fishing vessels and recreational/sailing vessels.

• Matsyafed insures fishing vessels for the first five years after construction, with a depreciation rate of 10 percent per year in value.

• Trivandrum District Fishermen Federation (TDFF) provides insurance coverage for various kinds of fishing vessels (hull), including catamarans.

Matsyafed insures the engines on board fishing vessels for three years. Also fishing gears (nets) for three years, claims only accepted on gears if there is total loss of the vessel, engine and gears.

TDFF covers fishing equipment and gears. The coverage is for total loss (vessel, equipment and gears) maximum compensation provided under the coverage is INR50 000.

In case of partial loss or damage, the maximum compensation paid is INR25 000

Matsyafed member pay annual premiums of INR15 for this service. In case of death by accident or missing at sea of fisherfolk, the compensation to the family/dependents of fisherfolk is INR150 000.

South Indian Federation of Fishermen Societies (SIFFS)

A unit of five members is defined as a fishing crew. The annual premium for five crew members is INR150 plus a 12.24 percent tax (total: INR168.36). In case of death by accident or missing at sea of crewmembers, the compensation to the family/dependents of the crew is INR50 000 per person.

FISHCOPFED also operates a Group Insurance Scheme for Active Fishermen. Annual premium payments are INR14 per fisher, of which 50 percent is subsidized through a grant by FIHCOPFED itself. The state government pays 50 percent of the premium; therefore the scheme is fully subsidized. The sum insured is INR50 000 for death/permanent disability, and INR25 000 for partial disability.

Claims must be reported immediately when damage has occurred.

Also when it is likely that damage to or loss of the fishing vessel or fishing equipment will occur in the near future.

In general, the insurance policies issued contain standard guidelines for the policyholders to make claims.

Fisheries economics and marketing- Shyam S.

Salim RS Biradar S.K Pandey.

FAO corporate document depository- Review

of current state of world aquaculture

insurance.

FAO corporate document depository- Review

of the current state of world capture

fisheries insurance.(2009)