Coconut Palm Insurance Scheme

Scheme Introduction: A Brief Overview

Coconut farming is an important source of livelihood for many farmers in India, but growing coconut palms also comes with risks. Cyclones, floods, heavy rainfall, droughts, pests and diseases can damage healthy palms, cause their death or make them unproductive, resulting in financial losses for growers. To help farmers manage these risks, the Coconut Palm Insurance Scheme (CPIS) provides insurance protection for eligible coconut palms against specified natural calamities and other covered risks. Under the revised 2026 operational guidelines, the insurance cover is ₹1,900 per palm for palms aged 4–15 years and ₹3,700 per palm for palms aged 16–60 years. The revised guidelines generally require at least 10 healthy, nut-bearing coconut palms in a contiguous area, while older guidelines specify a minimum of five palms. Farmers should confirm the applicable coverage and eligibility conditions before applying.

The Coconut Palm Insurance Scheme was introduced on a pilot basis in 2009–10 and is implemented by the Coconut Development Board (CDB) under the Ministry of Agriculture and Farmers Welfare, Government of India, in coordination with the Agriculture Insurance Company of India Ltd. (AIC) and the concerned State Agriculture or Horticulture Departments. The scheme covers eligible Tall, Dwarf and Hybrid coconut palms, subject to the prescribed age and health conditions. Dwarf and Hybrid palms aged 4–60 years and Tall palms aged 7–60 years are eligible under the published guidelines. The revised 2026 guidelines provide for the Coconut Development Board to contribute 85% of the premium, with the farmer contributing the remaining 15%. However, the revised document does not specify the premium payable in rupees, and older government listings show different premium-sharing arrangements. Farmers should therefore confirm the current premium, insurance coverage and enrolment conditions before purchasing a policy.

To apply for the Coconut Palm Insurance Scheme, eligible farmers can contact AIC, the nearest Coconut Development Board office or their local Agriculture or Horticulture Department. The application process is generally offline and requires a completed insurance proposal, details of the coconut palms, relevant land or plantation records, identity proof and payment of the applicable farmer contribution. Under the revised guidelines, applicants must number the palms in the plantation, and insurance coverage generally begins on the first day of the month following enrolment. Farmers should also report an insured loss within the prescribed deadline and follow the insurer's claim-assessment procedure. For assistance with the latest application forms, premium rates and claim requirements, contact the Coconut Development Board or the relevant implementing agency.

Farmers and workers involved in coconut cultivation may also find the Kera Suraksha Insurance Scheme useful. Unlike CPIS, which insures eligible coconut palms, the Kera Suraksha Insurance Scheme provides personal accident insurance to eligible coconut tree climbers, harvesters, Neera technicians and other specified coconut-sector workers. Exploring both schemes can help readers understand the different forms of insurance protection available to coconut growers and workers.

Scheme Benefits

The Coconut Palm Insurance Scheme (CPIS) helps coconut farmers manage financial losses caused by specified natural calamities and other covered risks. Its main benefits include:

• Provides insurance coverage of ₹1,900 per palm aged 4–15 years and ₹3,700 per palm aged 16–60 years under the revised 2026 guidelines.
• Covers specified risks, including storms, cyclones, floods, heavy rainfall, lightning, fire, earthquakes, landslides, pests and diseases.
• Includes wild animal attacks under the revised guidelines, although the document contains conflicting provisions on animal-related losses. Farmers should confirm coverage with the insurer.
• Provides compensation for insured palms that die or become permanently unproductive due to covered events, subject to the policy conditions.
• Provides compensation equal to 25% of the sum insured for drought-related production loss when drought is officially declared by the competent authority, as specified in the revised guidelines.
• Reduces farmers' premium burden through a subsidy. Under the revised guidelines, the Coconut Development Board contributes 85% of the premium and the farmer pays 15%.
• Covers eligible Tall, Dwarf and Hybrid coconut palms grown as a single crop, alongside other crops, on field boundaries or in homesteads.
• Offers policies for up to three years, with premium rebates of 7% for two-year policies and 12% for three-year policies under the revised guidelines.
• Helps farmers manage unexpected crop losses and protect their investment in coconut cultivation.

Note: The revised 2026 guidelines do not specify the exact premium payable in rupees. Farmers should confirm the current premium, coverage and applicable policy conditions with the Coconut Development Board or the implementing insurance agency before applying.

Sum Insured and Premium Rates

The amount of insurance available under the Coconut Palm Insurance Scheme (CPIS) depends on the age of the coconut palm. The Coconut Development Board's revised 2026 operational guidelines specify higher insurance amounts and a different premium-sharing arrangement from those listed in the older guidelines. Farmers should check which rates currently apply before enrolling.

Under the older premium structure, the farmer's annual contribution is ₹2.25 per palm for the 4–15-year age group and ₹3.50 per palm for the 16–60-year age group, provided the standard 50:25:25 premium-sharing arrangement applies. The revised guidelines do not specify the new premium amount in rupees, so these older rates should not be used to calculate the current contribution without confirmation.

The sum insured is the insurance amount specified for an eligible palm, not an automatic payment for every damaged tree. Compensation depends on the insured event, loss assessment and applicable policy conditions.

Risks Covered and Exclusions

Coconut palms can suffer serious damage from extreme weather, natural disasters, pests and diseases. The Coconut Palm Insurance Scheme provides protection against specified risks that cause an insured palm to die, suffer irreparable damage or become unproductive. However, not every type of damage or loss qualifies for compensation.

The following risks are listed in the scheme guidelines, subject to the applicable policy terms:

• Storms, hailstorms, cyclones, typhoons, tornadoes and heavy rainfall.
• Floods and inundation.
• Widespread pest attacks and diseases that cause irreparable damage to coconut palms.
• Accidental fires, including forest fires and bush fires, and lightning.
• Earthquakes, landslides and tsunamis.
• Severe drought, including a provision in the revised 2026 guidelines for compensation equal to 25% of the sum insured for production loss when drought is officially declared by the competent authority.
• Wild animal attacks are listed as a covered risk in the revised 2026 guidelines, although the document also contains an exclusion referring to animal action. Farmers should confirm how this provision applies to their policy.

The following losses and circumstances are listed among the exclusions in the scheme guidelines:

• Theft, war, invasion, civil war, riots, rebellion and malicious damage.
• Nuclear reactions, radiation and radioactive contamination.
• Damage caused by aircraft or other falling objects.
• Loss resulting from wilful negligence by the insured.
• Damage caused by improper maintenance of the palms.
• Natural death of a palm and losses associated with unhealthy or senile palms.
• Uprooting associated with chiselling of roots.
• Losses falling within the applicable franchise limit.
• Other excluded events specified in the applicable insurance policy.

Unproductive palms may qualify for compensation when the required assessment confirms that the damage resulted from an insured event and the palm cannot recover. Under the guidelines described in the research, if the farmer retains the unproductive palm instead of felling it, 50% of the sum insured may be deducted as salvage value.

For the precise list of covered events, exclusions and claim conditions, refer to the CPIS operational guidelines. Because the revised guidelines contain an inconsistency regarding animal-related losses, confirm the applicable terms with the insurance company before relying on this coverage.

Eligibility Requirements

To qualify for the Coconut Palm Insurance Scheme (CPIS), farmers must meet the following conditions:

• Have at least 10 healthy, nut-bearing coconut palms in a contiguous area under the revised 2026 guidelines. Older guidelines specify a minimum of 5 palms.
• Dwarf and Hybrid coconut palms must be 4–60 years old, while Tall palms must be 7–60 years old.
• Only healthy, nut-bearing palms are eligible. Unhealthy, senile and non-bearing palms are excluded.
• All eligible palms in the same contiguous plantation area must be insured. Farmers cannot insure only selected eligible palms in that area.
• The scheme covers Tall, Dwarf and Hybrid palms grown alone or alongside other crops, including palms on field boundaries and homesteads.
• Farmers must provide accurate details about the palms and submit the required documents. The insurer may verify the declared age, and incorrect declarations may invalidate the policy.
• The plantation must be in an area where the scheme is implemented, subject to the applicable state approval and arrangements.

Farmers should confirm the applicable eligibility conditions with the Coconut Development Board, the insurance agency or their local Agriculture or Horticulture Department before applying.

Required Documents

Farmers applying for the Coconut Palm Insurance Scheme (CPIS) may need the following documents:

• Identity proof.
• Completed proposal form and applicable farmer's premium share.
• Land records or proof of plantation.
• Self-declaration confirming the health of insured palms.
• Plantation sketch showing plot details and the number of palms.
• Bank account details for claim payments.
• Any additional documents required by the implementing agency.

Steps to Apply

Farmers can apply for the Coconut Palm Insurance Scheme (CPIS) through the prescribed offline process, subject to the scheme's availability in their area. Follow these steps to apply:

• Contact the Coconut Development Board (CDB), the Agriculture Insurance Company of India Ltd. (AIC), or your local Agriculture or Horticulture Department to confirm whether the scheme is available in your area.
• Obtain the CPIS proposal form from the concerned office or authorised insurance representative. If the form is unavailable on the CDB Application Forms page, contact the Board or AIC directly.
• Check that your coconut palms meet the applicable eligibility conditions, including the minimum number of healthy, nut-bearing palms and the age limits for Tall, Dwarf and Hybrid varieties.
• Prepare the required documents, including identity proof, land or plantation records, a health declaration, a plantation sketch and bank account details. Number each palm if required under the applicable guidelines.
• Complete the proposal form accurately and include all eligible palms in the contiguous plantation area, as partial insurance of eligible palms in that area is not permitted.
• Confirm the applicable premium, farmer's share and subsidy arrangement with the implementing agency, as the older and revised guidelines differ. Pay the required premium using the accepted payment method.
• Submit the completed form and supporting documents to the authorised insurance representative or designated Agriculture or Horticulture Department office, following the instructions provided.
• Collect the Certificate of Insurance or cover note and check the insured palms, policy period and coverage start date. Keep the document safely for future reference and claim submission.

How to Claim Insurance Under CPIS

If an insured coconut palm dies or suffers serious damage because of a covered event, the farmer should report the loss promptly and follow the insurance company's assessment procedure. Keeping the damaged palm available for inspection and submitting the required documents can help avoid unnecessary delays.

1. Report the loss to the Agriculture Insurance Company of India Ltd. (AIC) or the relevant implementing agency within the prescribed deadline. The revised 2026 guidelines specify notification within 10 days of the event, while the older guidelines allow 15 days.
2. Do not remove or move the damaged palm before the authorised loss assessor has inspected it, unless the implementing agency provides instructions otherwise.
3. Arrange for the loss to be assessed by the authorised officer or agency. Under the revised guidelines described in the research, loss assessment is to be completed within 15 days of notification.
4. Provide the required supporting documents and information about the insured palm, the incident and the resulting damage.
5. If the palm has become unproductive but has not died, obtain the required certificate from the authorised department or agency confirming that the palm cannot recover. Follow the applicable instructions regarding felling or retaining the palm.
6. Wait for the insurance company to review the assessment and supporting documents. The guidelines specify settlement of an admissible claim within one month of receiving all certified claim documents.

The amount payable depends on the applicable sum insured, the assessed loss, the franchise clause and other policy conditions. The settlement timeline should not be interpreted as a guarantee of payment where documents are incomplete or the claim is not admissible.

For claim assistance, contact the Coconut Development Board, the implementing insurance company or your local Agriculture or Horticulture Department. Always check the notification deadline stated in your actual policy, particularly if it differs from the older guidelines.

Relevant Links

• Coconut Development Board (CDB) – Official Website
• CDB Schemes – Revised Operational Guidelines 2026
• Coconut Palm Insurance Scheme – Earlier Operational Guidelines

Contact Information

For assistance with the Coconut Palm Insurance Scheme (CPIS), including eligibility, current premium rates, application procedures and claim-related queries, farmers can contact the Coconut Development Board at its headquarters in Kochi, Kerala.

Coconut Development Board (CDB)

• Phone: 0484-2376265, 0484-2377267, 0484-2377266
• Email: [email protected]/[email protected]
• Address: Coconut Development Board, Kera Bhavan, SRV Road, P.B. No. 1012, Kochi – 682 011, Kerala, India.

For complaints or general guidance, the Board's Citizens' Charter lists the grievance contact numbers as 0484-2376265 and 0484-2377267. Farmers should also contact their nearest Agriculture or Horticulture Department office or the Agriculture Insurance Company of India Ltd. (AIC) to confirm the current CPIS enrolment arrangements and claim requirements.