Coconut Development Board is running the Coconut Palm Insurance Scheme for coconut growers across India. Under this scheme, farmers can insure their healthy nut-bearing coconut palms against natural disasters, pests, diseases, and other risks. If an insured palm dies or becomes unproductive due to a covered risk, the farmer gets the sum insured as compensation. Enrollment happens through the Agriculture Insurance Company of India (AIC) and the local Agriculture or Horticulture Department office.
In 2026, officials are again asking coconut farmers to enroll under this scheme. In Coimbatore district, for example, the district administration urged farmers to insure their palms because of pest attacks and a 40% shortage in southwest monsoon rainfall. Coconut palms are not covered under PMFBY (Pradhan Mantri Fasal Bima Yojana), so this scheme is the main insurance option for coconut growers.
Coconut Palm Insurance Scheme - Introduction
Coconut Palm Insurance Scheme is run by the Coconut Development Board (CDB), which works under the Ministry of Agriculture and Farmers Welfare. The scheme protects healthy, nut-bearing coconut palms against natural calamities, extreme weather, pests, and diseases. Dwarf and Hybrid palms aged 4 to 60 years and Tall palms aged 7 to 60 years can be insured. Palms grown as a single crop or as an intercrop, on bunds, farms, or homesteads, are all covered.
The scheme is implemented in selected districts of all states and union territories through the Agriculture Insurance Company of India (AIC). When an insured palm dies or becomes unproductive because of a covered risk, the farmer gets the sum insured. This money helps farmers replant and bring their gardens back to production without bearing the full loss alone. The Coconut Development Board also runs the Kera Suraksha Insurance Scheme for coconut tree climbers and harvesters, but that is a separate accident cover.
Objectives
The main aims of the scheme are:
- Help coconut growers insure their palms against natural and other risks at an affordable premium.
- Give timely money support to farmers who lose income when their palms die suddenly.
- Reduce the risk for farmers so that coconut farming stays profitable and gardens keep producing.
Applicability and Risks Covered
All healthy, nut-bearing palms in the insurable age group can be covered. Dwarf and Hybrid palms are covered from 4 to 60 years of age, while Tall palms are covered from 7 to 60 years. Unhealthy palms and very old senile palms do not qualify.
The risks covered under the policy are:
- Storms, cyclones, heavy rains, hailstorms, and tornadoes.
- Floods and waterlogging.
- Pest attacks and diseases of a widespread nature that damage palms beyond repair.
- Accidental fire, including forest and bush fire, and lightning.
- Earthquake, landslide, and tsunami.
- Severe drought that leads to total loss of the palm.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Coconut Palm Insurance Scheme |
| Launched By | Coconut Development Board |
| Ministry | Ministry of Agriculture and Farmers Welfare |
| Beneficiaries | Individual coconut farmers and growers |
| States | Selected districts of all states and UTs |
| Benefit Amount | ₹900 to ₹1,750 per palm |
| Premium | ₹9 or ₹14 per palm per year |
| Premium Sharing | Board 50%, State 25%, Farmer 25% |
| Application Mode | Offline through AIC and Agriculture/Horticulture Department |
| Official Website | coconutboard.gov.in |
Benefits
The scheme is made affordable through a shared premium model. The Coconut Development Board pays 50% of the premium, the state government pays 25%, and the farmer pays the remaining 25%. If a state does not take part in the scheme, the farmer has to pay 50% of the premium. In any case, the farmer must pay a minimum of 10% of the premium.
| Age of Palm | Premium per plant | Board Share (50%) | State Share (25%) | Farmer Share (25%) | Sum Insured |
|---|---|---|---|---|---|
| 4-15 years | ₹9 | ₹4.50 | ₹2.25 | ₹2.25 | ₹900 |
| 16-60 years | ₹14 | ₹7 | ₹3.50 | ₹3.50 | ₹1,750 |
A policy can be taken for up to three years. A two-year policy gets a 7.5% rebate on the premium, and a three-year policy gets a 12.5% rebate. Farmers who want full-year cover should enroll by 31st March. Those who join after 31st March can still enroll, and their cover starts from the first day of the following month. If a farmer keeps an unproductive palm instead of felling it, 50% of the insurance value is deducted as salvage value.
Eligibility
Any individual farmer or grower who has at least 5 healthy, nut-bearing palms can apply. This is not an area-based scheme; it covers individual trees. Partial insurance is not allowed, so all eligible healthy palms in a contiguous plot must be covered together.
Waiting Period: There is a 30-day waiting period from the start of the insurance. If a loss happens during these first 30 days, the claim is not payable. This condition does not apply when a policy is renewed without a gap.
Exclusions
Some situations are not covered. Losses due to theft, war, civil commotion, rebellion, or malicious damage are excluded. Damage from nuclear radiation, aircraft impact, or any human, bird, or animal action is also not covered. If palms are neglected, improperly maintained, or become unproductive due to old age, no claim is payable.
Application Process
Farmers can enroll through the nearest office of the Agriculture or Horticulture Department, or through an authorized agent of the Agriculture Insurance Company of India. The steps are simple:
STEP 1 - Contact the nearest Agriculture or Horticulture Department office (Krishi Bhavan) or an authorized AIC agent, and ask for the Coconut Palm Insurance Scheme proposal form.
STEP 2 - Fill in the proposal form with the details of your palms, including a self-declaration of the age group. The Agriculture Officer will help you fill the form correctly and calculate the premium.
STEP 3 - Pay your share of the premium by cash, cheque, or bank draft in favor of the insurance company. Keep the acknowledgement-cum-receipt given by the officer, since it is your proof of insurance.
STEP 4 - The Agriculture Insurance Company issues the Certificate of Insurance or cover note within 30 days of receiving the proposal with the premium.
How to Claim
STEP 1 - Inform the insurance company and the local Agriculture Officer within 15 days of the loss, with all details of the damage.
STEP 2 - Submit the claim form along with the loss assessment certificate from the Coconut Development Board or the Agriculture/Horticulture Department within 15 days of the intimation.
STEP 3 - After all verified documents reach the insurance company, the claim is released within one month, subject to the release of the premium subsidy from CDB and the state government.
Documents Required
Keep these documents ready while applying:
- Valid identification proof.
- Filled proposal form with the payable premium amount (bank draft preferred).
- Land ownership records of the plantation.
- Self-declaration that the palms are healthy.
- A simple sketch of the plantation with numbered plots or trees.
- Bank account details for receiving the claim amount.
References
Official Coconut Board Website - CPIS Details | Download CPIS Guidelines (PDF) | Operational Guidelines for CDB Schemes (PDF) | CDB Application Forms | The Hindu report on CPIS enrollment drive (31 July 2026)
FAQ's
What is Coconut Palm Insurance Scheme?
This is a welfare scheme by the Coconut Development Board that protects coconut palms against financial losses caused by natural disasters, pests, and diseases. If an insured palm dies or becomes unproductive, the farmer gets the sum insured.
Who qualifies for this insurance?
Any individual farmer who owns at least 5 healthy, nut-bearing coconut palms can apply. Dwarf and Hybrid palms aged 4 to 60 years and Tall palms aged 7 to 60 years are covered.
Can I insure only a few trees in my orchard?
No. Partial insurance is not allowed. All healthy palm trees in a contiguous plot must be insured together.
How is the premium cost handled?
The premium is shared: 50% by the Coconut Development Board, 25% by the state government, and 25% by the farmer. If the state does not take part, the farmer pays 50% of the premium. In every case, the farmer pays at least 10% of the premium.
Is the scheme still running in 2026?
Yes. The Coconut Development Board continues to implement the scheme, and in 2026 officials are encouraging coconut farmers to enroll, especially in areas facing drought and pest attacks. Farmers can join through the Agriculture Insurance Company of India or the local Agriculture/Horticulture Department.
What if I replace an unproductive tree?
If a palm is damaged and cannot be rejuvenated, follow the formal declaration process to claim the insurance. If you keep the tree instead of felling it, a salvage value deduction of 50% will be applied to the claim.