What does policy cover?

The aim of the Kisan Suvidha Bima Policy is to offer a single Package Policy principally to farmers and rural householders involved in agriculture. Through this rural insurance policy in India, they can avail comprehensive insurance protection for their entire assets, interests and risks of Critical Illness or Personal Accident for self and family.

Scope of Coverage of the policy

This insurance Policy comprises of 6 Sections.

  • Section 1 provides insurance for contents of the household against the perils mentioned in the Standard Fire and Special Perils Policy, including Earthquake.
  • Section 2 provides insurance to household items covered in Section 1 Part A against the risks of burglary, house breaking and allied perils.
  • Section 3 provides insurance to the stocks of farm produce lying in the insured household that was stored for sale. This cover is only against the risk of Fire and Allied Perils and Burglary and House Breaking Perils. An important to note here is that for instances where the stocks are lying in the open, Housebreaking risks/Burglary or damages by rainwater shall not be covered by this rural insurance policy.
  • Section 4 provides insurance to the insured and/or his/her family members against death or sudden accidents causing permanent total and permanent partial disability (Table B of P.A. cover).
  • Section 5 provides insurance to the insured and/or his/her family members against specific Critical Illnesses that require hospitalization. It is important to note that this coverage is provided on a Reimbursement Basis only.
  • Section 6 provides a comprehensive insurance cover to the insured’s Tractor as per the Indian Motor Tariff-Class D (Misc. Vehicles).

What points to keep in mind while buying the policy?

  • Coverage of a minimum 3 sections is compulsory, including Section 1 Part A.
  • The insured premises are required not to be ‘kutcha’ construction, as per the guidelines outlined in the Fire Tariff.
  • The insurance coverage offered for Fire and Burglary Sections is provided only on a First Loss Basis, with the insured amount representing 50% limit of total value at risk. Underinsurance would be applicable in case the value at risk is below the said parameter.
  • Claim settlement for sections 1, 2 and 3 shall be on a Market Value basis only.
  • For Sections 1 and 2, the insurer’s liability in case of loss and/or damage to jewellery shall not exceed 20% of the sum insured as per the guidelines set in the said sections. The jewellery items’ Market Value shall form the basis of claim settlement.
  • In order to claim coverage for Personal Accident and Critical Illness Sections, the age limit of the claimants can be between 5-65 years only.
  • Under Section 6, the coverage for tractors shall be on a comprehensive basis, i.e. Own Damage along with Third Party Liability.
  • Insurance cover for tractors older than 10 years is to be avoided.

Policy Cancellation Details:

We may cancel this Policy by sending 15 days’ notice in writing by Regd. A.D. to You at Your last known address. You will then be entitled to a pro rata refund of premium for the unexpired period of this Policy from the date of cancellation, which We are liable to repay on demand. You may cancel this Policy by sending a written Notice to Us. We will then arrange a refund after retaining the premium based on the following Short Period scale.

Cancellation Period


Within One Week of inception of cover

25% of premium

Beyond One Week of inception of cover but within 15 days of inception of cover.

12.5% of Premium

Beyond 15 days of inception of cover