RUBBER PLANTATION INSURANCE Rubber is one of the important cash crops cultivated in India mainly in Kerala and the

NorthEastern States. The total area under rubber cultivation in the country is in the region of about 5, 74,000 hectares and out of which 83% i.e. almost 4,78,500 hectares are in the state of Kerala. The rubber plantations can be categorized into two types i.e. those with immature plants and others with mature trees. A rubber plant takes almost 7 years of growth to mature for tapping and start yielding. A mature healthy tree can be tapped for about 22 years. When the yield starts decreasing beyond a certain level due to aging, the trees are usually cut and the area replanted. The period of effective yield can vary from 16 to 22 years. The rubber plantations are exposed to perils like fire, lightning, forest fire, bush fire, flood, storm, tempest, inundation, land slide, rock slide, earthquake, draught etc. The peculiarity of rubber plantations is that if a few trees in a holding is damaged or perished, that particular patch of land cannot be used till the time the entire trees are cut and the area replanted. Insurance Scheme for Rubber Plantations The scheme will be applicable to both mature and immature plantations. The policy will be issued for a period of 7 years from the last day of the month of planting for immature plants. Compensation will be available from the second year onwards, which is calculated on the basis of replacement cost of the plant plus present value of future returns arising out of the loss / death of the plant. For mature plantations cover will be provided for blocks of 3 / 2 / 1 year(s) from the 8th year of planting. Compensation is calculated the same way as for the immature plantations, i.e. taking into account the input cost and anticipated yield deducting there from recurring maintenance expenses. Maximum compensation is available during the age band of 8 to 13 years (Rs. 5,00,000 per hectare) followed by 14 -19 years (Rs. 4,00,000 per hectare); 20 - 22 years (Rs. 3,00,000 per hectare) and 23 -25 years (Rs. 2,00,000 per hectare). The details of compensation at different ages are provided in the chart. Risks Covered by the Scheme Fire, Lightning, Riot, Strike & Malicious Damage, Bush Fire, Forest Fire, Flood, Storm, Tempest, Inundation, Land Slide, Rock Slide, Earthquake and Drought provided the Block / Taluka concerned is declared as drought affected by the competent authority of the State Government. The policy is also extended to cover the loss or damage caused by road/rail vehicles and wild animals. Period of Insurance Seven years from the last day of the month of planting for immature plantations and in blocks of 3 / 2 / 1 year(s) each from the 8th year onwards upto 25 years for mature plantations. Total Loss In the case of destruction of 75% of trees and above per hectare, the loss will be treated as total and the insured will be paid compensation as per the enclosed chart for the damaged trees. Compensation for the remaining unaffected trees in the affected holding will be paid on

production of a certificate from the Rubber Board / Surveyor certifying that the balance 25% trees have been cut and that the entire land is ready for re-planting. Partial Losses Losses other than Total Loss will fall under Partial Loss category. Partial losses due to perils covered by the policy will be clubbed during the monsoon months (three months period from June to Aug) & will be treated as one loss. Note: The above product summary is meant for information only and may not necessarily match the actual insurance policy/scheme, word to word.