The Agriculture Insurance Company of India Limited (AIC) was formed under the aegis of the Indian Government and promoted by six Indian public sector companies as a specialty crop insurance provider to the Indian farming community. The AIC was incorporated on 20 December 2002 with an authorised share capital of ₹ 1500 crores and a paid-up capital of ₹ 200 crores.
The promoters of the AIC are the General Insurance Corporation of India (35%), the National Bank for Agriculture And Rural Development (30%), National Insurance Company Limited (8.75%), the New India Assurance Company Limited (8.75%), the Oriental Insurance Company Limited (8.75%) and the United India Insurance Company Limited (8.75%).
It commenced its business operations on 1 April 2003 by taking over crop insurance operations from its major promoter, the General Insurance Corporation of India Limited. The AIC has taken over the implementation of the National Agricultural Insurance Scheme (NAIS), which, until FY 2002–03, was implemented by the General Insurance Corporation of India. The AIC also transacts other insurance businesses directly or indirectly concerning agriculture and its allied activities.
The AIC is a specialty and one of the largest crop insurance companies in the Indian non-life insurance sector. The company has a market share of about 50 per cent in Indian crop insurance and aims to cover the huge protection gap lying uninsured with respect to other risks related to agriculture and allied activities of the Indian farmers.
