COCONUT PALM INSURANCE SCHEME
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Coconut Palm Insurance Scheme (CPIS) – Detailed Information
The Coconut Palm Insurance Scheme (CPIS) is a risk-protection scheme for coconut growers. It is intended to protect the economic value of healthy, nut-bearing coconut palms against specified natural calamities, climatic risks, pests, diseases and other insured perils. The scheme is implemented through the Coconut Development Board (CDB) in association with the insurance company and participating State Agriculture/Horticulture Departments.
Why Coconut Palm Insurance Is Important
Coconut is a perennial crop, and farmers may have to wait several years before a newly planted palm becomes productive. Therefore, the sudden death or destruction of a mature bearing palm can result in a substantial economic loss.
CPIS aims to:
- Protect coconut growers against specified risks.
- Provide financial relief after eligible palm loss.
- Reduce the financial impact of sudden palm death.
- Encourage replanting and rejuvenation of coconut gardens.
- Make coconut cultivation more financially sustainable.
Which Coconut Palms Are Eligible?
According to the CDB operational guidelines, CPIS applies to healthy, nut-bearing coconut palms.
It covers:
| Coconut variety | Eligible age |
|---|---|
| Dwarf varieties | 4–60 years |
| Hybrid varieties | 4–60 years |
| Tall varieties | 7–60 years |
Palms that are unhealthy or senile are excluded from coverage. The scheme can cover palms grown as monocrops or intercrops, including palms on bunds, farms and homesteads.
Sum Insured and Premium
The scheme's benefits have been revised over time.
The earlier CDB guidelines specified:
- ₹900 per palm for palms aged 4–15 years.
- ₹1,750 per palm for palms aged 16–60 years.
- Premium of ₹9 per palm/year for the first age group.
- Premium of ₹14 per palm/year for the second age group.
Important 2024–25 Update
The CDB's 2024–25 Annual Report states that the benefits under CPIS were increased from 10 December 2024. An augmented sum insured of ₹7 lakh, along with increased benefits, was agreed with an annual premium of ₹956. The farmer's payable amount is stated as the subsidized 25% share, subject to the applicable implementation arrangements
Therefore, when publishing current information, it is better not to present the older ₹900/₹1,750 figures as the current benefit without clearly identifying them as the earlier guideline structure.
Premium Subsidy
Under the earlier CPIS structure, the premium was shared as follows:
- 50% – Coconut Development Board
- 25% – State Government
- 25% – Farmer/Grower
If the State Government does not contribute its 25% share, the farmer may be required to bear a higher portion, according to the scheme provisions.
The CDB's 2024–25 report confirms that the scheme continued with 50% contribution from CDB and 25% each from the State Government and beneficiary farmers, while the revised benefit structure was introduced from December 2024.
How to Apply for CPIS
A farmer should generally:
- Contact the Agriculture/Horticulture Department or designated implementing agency.
- Confirm that CPIS is being implemented in the farmer's area.
- Identify eligible healthy, bearing coconut palms.
- Submit the required insurance proposal/application.
- Provide details of the palms and required farmer documents.
- Pay the applicable farmer share of the premium.
- Obtain the insurance certificate/policy confirmation.
- Keep the policy and application records safely for future claims.
The exact application procedure can vary according to the participating State and current insurance-company arrangements.
Documents That May Be Required
The exact list depends on the State and implementing agency, but farmers may be asked for:
- Aadhaar/identity proof
- Land ownership or cultivation records
- Bank account details
- Mobile number
- Details of coconut palms
- Number and age of palms
- Insurance proposal/application
- Premium payment details
- Insurance certificate/policy
- Photographs or other evidence where required
- Documents supporting a claim after palm loss
Current Status
The CDB's 2024–25 Annual Report confirms that CPIS continued during 2024–25. It states that implementation was associated with the Agriculture Insurance Company of India and State Agriculture/Horticulture Departments; the insurance arrangement changed after the earlier contract ended in November 2024, and the revised benefits were introduced from 10 December 2024.
The report also records 462 farmers and 0.64 lakh coconut palms insured during 2024–25, covering about 365.55 hectares across Andhra Pradesh and Tamil Nadu in the reported implementation data.
Conclusion
Coconut Palm Insurance Scheme (CPIS) provides an important risk-management mechanism for coconut growers by protecting eligible bearing palms against specified natural, climatic, pest, disease and other insured risks. With revised benefits introduced from December 2024, the scheme provides stronger protection, while the subsidy structure helps keep the farmer's premium contribution affordable.
Note: Premium, sum insured, participating States, application channels and claim conditions can change with new CDB/State/insurer arrangements, so farmers should verify the latest terms before applying.