Page 10 - Insurance Times December 2022

launched an insurance cover to derisk
Goldman, TVS Capital may lead $150 mn round in
farmers against market price fluctua-
InsuranceDekho tions. The product offering, part of its
Goldman Sachs and TVS Capital are in advanced talks to lead a $150 million flagship insurance program ‘Kavach’, is
investment in used cars unicorn CarDekho's insurance unit InsuranceDekho, called Bhav Guarantee and the com-
two people aware of the matter said, in what is expected to be the biggest pany aims to cover both cereal and
Series A funding round in India. vegetable crops.
The company is likely to be valued at $450-500 million in the funding round, nurture.farm said the Kavach Bhav
said one of the two people cited above, both of whom spoke on condition of
Guarantee product aims to help farm-
anonymity.
ers get fair value for their produce and
"The documents have been signed, with only the insurance regulator's ap- minimize financial losses in case of
proval pending," the second person said, adding other funds, too, will join price fluctuations. While it is difficult to
the round, which will be primarily an equity raise. predict the mandi prices for different
InsuranceDekho, operated by Girnar Insurance Brokers Pvt. Ltd, was founded crops as these prices depend on a large
in 2017. The company, led by founder and chief executive officer Ankit number of variables, nurture.farm has
Agrawal, may record annualized premium collection of around Rs. 3,600 crore created a risk cover mechanism
in FY23, the first person said. through which the farmer is compen-
sated for the fluctuations in prices of
their end produce.
Insurance to discontinue the product
Centre confident of more
"Digit Group Total Protect Policy" as The advantages of this offering include
States will re-join crop in- the product falls under the purview of
index-based trigger, shorter disbursal
surance scheme life insurance which could not be of- window, and direct transfer of the
fered by a general insurance company.
The Agriculture Ministry said it is open compensation amount to the farmer’s
to making pro-farmer changes in the "From all the provisions, it is clear that bank account.
flagship Pradhan Mantri Fasal Bima any person who wishes to carry on in-
Dhruv Sawhey, COO & Business Head
Yojana (PMFBY) so that the scheme surance business can do so provided
at nurture.farm said, "Kavach Bhav
responds to the climate crisis. that the person gets a registration of
Guarantee is designed to safeguard
a particular class of insurance business
Pointing out that farming is directly farmer's income and aligns with our
under Section 3 of the Insurance Act
exposed to climatic catastrophes, Ag- mission of making agriculture sustain-
read with Clause 4 of the Regulations
riculture Secretary Manoj Ahuja said able and viable. With this product, we
of 2000," the order said.
the demand for crop insurance is likely will be able to successfully mitigate risk,
"The contention of the appellant (Go
to increase. Greater emphasis is minimize risk cover premiums, guaran-
Digit) is that their product was already
needed on crop and other forms of tee returns and, in turn, build for
providing cover for accidental death
rural/ agricultural insurance products
farmer resilience. The product is
and, therefore, addition of death un-
to provide sufficient insurance protec-
tailormade for farmers and will ensure
der Section 29(e) of the modified prod-
tion to farmers.
financial safety against price fluctua-
uct did not partake the nature of a life
Addressing an annual review meeting of tions."
insurance under Section 2(11) of the
the PMFBY, Ahuja said digitisation and
Act and that only an additional/ancil- nurture.farm has partnered with
technology play a significant role in scal-
lary benefit was provided to the in- Advanta Seeds to launch the Kavach
ing up the reach and operation of crop
sured in case of death," it said. Bhav Guarantee for farmers who pur-
insurance, with precision agriculture.
chase Advanta's Raadhika, Jaani or
nurture.farm launches in-
Ratna brands of okra (lady's finger)
Go Digit product: SAT up- seeds. Farmers can download the
surance cover to shield
holds IRDAI order nurture.farm app and scan the QR
farmers from price fluctua-
code available on the okra seeds pack
The Securities Appellate Tribunal (SAT)
tions to avail this cover benefit at no addi-
has upheld the order of insurance regu-
lator IRDAI directing Go Digit General Agritech firm nurture.farm has tional charge, the company said.
10 December 2022 The Insurance Times