How does coffee rainfall insurance operate?
This Insurance operates on the basis of area approach. The area for the purpose is coffee zone demarcated by Coffee Board. The payout is decided on the basis of the rainfall recorded at coffee zone level, and not at individual coffee plantations. Once a payout triggers at a coffee zone level, it would be deemed that individual insured coffee growers within the coffee zone have suffered similar short fall in rainfall trigger level, and the policy seeks to provide payouts against such contingency for all the insured growers insured under RISC. No individual coffee estate will be taken into account for this purpose. Even the individual growers harvesting a normal crop may receive the payout if rainfall deviation is triggered at coffee zone level. All growers have liberty to use sprinkler or any other means to save coffee crop since it does not affect claim payout under RISC.
