GOVERNMENT OF TAMIL NADU DEPARTMENT OF ...122.15.179.102/ARS/uploads/02-02-2019Download File.pdfThe list of cluster-wise districts and indemnity level are furnished in Annexure –

GOVERNMENT OF TAMIL NADU

DEPARTMENT OF AGRICULTURE

CHEPAUK, CHENNAI – 5

Invitation of Bids

“Pradhan Mantri Fasal Bima Yojana (PMFBY)”

Implementation period

2019 – 2020 to 2021 – 2022

(3 Years)

Director of Agriculture,

Chepauk, Chennai-600 005.

Table of Contents

Sl.

No. Description Page No.

Tender Notification

Tender Document

I. Introduction 1

II. Terms and Conditions 2 – 7

2 Notification of Indemnity level , Average Yield and Threshold yield

7 – 8

3 Notification of Seasonality Discipline 9

4 Engagement of Common Service Centres and Intermediaries for coverage of non-loanee farmers

9

5 Timeliness of Data Entry and Forward of Proposals to Insurance Companies by Banks

9

6 Timeliness of Audit and Reconciliation 10

7 Returning of Farmers’ premium in case of Rejection of Proposals

10

8 Sum Insured / Coverage Limit 10

9 Premium Rates and Premium Subsidy 10

10 Reconciliation of Individual Farmer details, sum insured, Premium amount collected by Financial Institutions and Common Service Centres

11 – 12

11 Establishment of Functional Offices and Manpower by the Insurance Companies

12

12 Use of Innovative Technologies 12 – 13

13 Selection of Insurance Companies as Implementing Agency

13 – 15

14 Responsibilities of Selected Insurance Companies as Implementing Agency (IA)

15 – 17

15 Publicity and Awareness 17

16 Service Charges 18

17 Goods and Service Tax 18

18 Claim Liability 18 – 21

19 Calculation of Threshold Yield 21 – 22

20 Eligibility Criteria for Tendering 22

21 Cost of Tendering 22

22 Contents of Tender document 22

23 General Instructions 22

24 Bidders to Check Tender documents 22 – 23

25 Clarification on the Tender 23

26 Amendments to the Tender 23

27 Tender Price and Contract requirements 23 – 24

28 Tender Validity 24

29 Tender submission 24 – 26

30 Tender Opening 26 – 27

31 Award of Tender 27

32 Notification of Award 27

33 Signing the Agreement 28

34 Termination of Contract 28 – 29

35 Sale of Tender document 29 - 30

C:\Users\Dell\Desktop\Insurance Tender documents\Notification.docx

TENDER NOTIFICATION Ref: G1 / 126094 / 2018

GOVERNMENT OF TAMIL NADU

DEPARTMENT OF AGRICULTURE

CHEPAUK, CHENNAI – 5

TENDER NOTIFICATION

For and on behalf of the Government of Tamil Nadu, tenders are invited from the

Insurance Companies empanelled by Department of Agriculture, Co-operation &

Farmers’ Welfare, Government of India for submission of their financial bid through

e-tendering process for implementation of Pradhan Mantri Fasal Bima Yojana

(PMFBY) in Tamil Nadu State for a three year period of 2019-2020, 2020-2021 &

2021-2022.

The non-transferable tender document with the relevant details can be obtained from

the Office of the Director of Agriculture, Chepauk, Chennai-5 on any working day

from 10.00 AM to 5.00 PM in person on payment of Rs.1,120/- (Rs.1,000+ Rs.120 for

GST) (Rupees One thousand one hundred and twenty only) inclusive of GST by way of

Demand Draft. Those desirous of obtaining a tender document, by post, may send

Demand Drafts, for a sum of Rs.1,190/- (Rs.1,000+ Rs.120 for GST + Rs.70 for

postal charges) (Rupees One thousand one hundred and Ninety only) which is

inclusive of GST and postal charges. Demand Draft should be drawn in favour

of the Director of Agriculture, Chepauk, Chennai-600 005 payable at State Bank

of India, Thousand Lights Branch, Chennai-600 006. The Tender document

may also be downloaded at free of cost from Government website

http://www.tnagrisnet.tn.gov.in.

The time schedule for opening of the e-tender is as follows:

a Sale of tender document closes on 20.02.2019 - 5.00 P.M.

b e-bidding closure / last date and time for receipt of tender

21.02.2019 - 12 Noon

c Date and time of opening of tender through online

21.02.2019 - 4.00 PM

Director of Agriculture.

http://www.tnagrisnet.tn.gov.in/

TENDER DOCUMENT

Ref No G1/126094/2018

GOVERNMENT OF TAMILNADU DEPARTMENT OF AGRICULTURE

CHEPAUK, CHENNAI – 600 005

Invitation of bids for selection of Insurance Companies empanelled by

Government of India as Implementing Agencies (IA) in Tamil Nadu for the

Scheme “Pradhan Mantri Fasal Bima Yojana (PMFBY)” for a three year period

of 2019 – 2020, 2020 – 2021 & 2021 – 2022

I. INTRODUCTION

1. e- tenders are invited from all the Insurance Companies designated / empanelled

by Department of Agriculture, Cooperation & Farmers Welfare, Government of

India for submission of their financial bid (Annexure-I) for implementation of

“Pradhan Mantri Fasal Bima Yojana (PMFBY)” in Tamil Nadu state for a three

year period of 2019 – 2020, 2020 – 2021 & 2021 – 2022

2. The revised Operational Guidelines (OGs) issued by Government of India,

Department of Agriculture, Cooperation & Farmers Welfare, Ministry of Agriculture

& Farmers Welfare, Krishi Bhawan, New Delhi will be the final guidelines for

implementation of PMFBY and shall prevail in case of any conflict between the

clauses in bid document & the OGs.

3. PMFBY will be implemented in all the districts except Chennai of Tamil Nadu State

during 2019 – 2020, 2020 – 2021 & 2021 – 2022 covering all notified food crops

(Cereals, Millets & Pulses), Oil seeds, Annual commercial/ Annual horticultural

crops besides Perennial horticulture crops on pilot basis in a few insurance units.

4. The list of cluster-wise districts and indemnity level are furnished in Annexure – II.

5. The list of district-wise, season-wise crops and Insurance Units to be notified

every year is furnished in the Annexure – III. Special season for Paddy-II, the

crops grown in Puratasi Pattam (Mid September to Mid October) viz., Cotton,

Maize and Onion are notified in addition to Kharif and Rabi Seasons. Rice

fallow pulses (January – March) in delta districts and special pulses crop

season for Rabi (October - November sowing, January – February sowing) in

other districts will also be notified.

6. The list of district-wise, crop-wise sum insured / scale of finance for 2018-2019 is

furnished in Annexure- IV.

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7. The historical yield data at Insurance Unit (IU) level for notified crops for the past 10

years, threshold yield and sown area details for the past 3 best years are provided

in soft copy. The historical yield data for Kharif Season shall be adopted for

Maize-II and Cotton-II (Special Season)

8. The district-wise, crop-wise cut-off date for enrolment, have been furnished in

Annexure-V.

9. The format for settlement of service charges to banks is furnished in Annexure VI

10. The format of contract agreement is furnished in Annexure VII

II. CLAUSES

1. TERMS & CONDITIONS

i. The scheme “Pradhan Mantri Fasal Bima Yojana (PMFBY)” will be

implemented both in Kharif and Rabi seasons of a year in Tamil Nadu state for

a three year period of 2019 – 2020, 2020 – 2021 & 2021 – 2022 with the

following objectives:

a) Providing financial support to farmers suffering crop loss / damage arising out of

unforeseen events.

b) Stabilizing the income of farmers to ensure their continuance in farming.

c) Encouraging farmers to adopt innovative and modern agricultural practices.

d) Ensuring flow of credit to the agriculture sector which will contribute to food

security, crop diversification and enhancing growth and competitiveness of

agriculture sector besides protecting farmers from production risks.

ii. The scheme will be implemented in all the districts of Tamil Nadu except

Chennai.

iii. The period of contract will be for 3 years i.e. 2019 – 2020, 2020 – 2021 and

2021 – 2022.

iv. Issuance of Notification by the Department of Agriculture, Government of

Tamil Nadu is final and will imply the acceptance of all provisions,

modalities and guidelines of the Scheme. No changes shall be entertained

in any form from any Insurance Companies after the notification as the

decision of the State Level Coordination Committee on Crop Insurance

taken in concurrence with the implementing agency shall be final.

v. Selection of Insurance Companies and their participation for

implementation of the Scheme (PMFBY) will imply their acceptance of all

3

provisions, modalities and guidelines enlisted in the Tender of the State

Government as well as by Government of India. It is the discretion of the

Tender Accepting Authority to reject the bid documents of the Insurance

Companies participating in the tender due to pending claim settlement to

the farmers of Tamil Nadu for the previous seasons.

vi. Bidding will be done only through e-tendering and work order will be released

within 2 weeks of the opening of the Tender. However, the Department of

Agriculture, Government of Tamil Nadu has the discretionary powers to take a

final decision on releasing the work order. The user manual for e-tendering

will be provided on the portal.

vii. COVERAGE OF FARMERS

A. All farmers including sharecroppers and tenant farmers growing the

notified crops in the notified areas are eligible for coverage.

B. Compulsory Component:

a. All farmers who have been sanctioned Seasonal Agricultural

Operations (SAO) loans from Financial Institutions (FIs) (i.e. loanee

farmers) for the notified crop(s) season would be covered

compulsorily. This provision shall override any decision taken

by FIs including PACCS exempting farmers from compulsory

coverage of loanee farmers.

b. Non-standard KCC / crop loans as defined and as per prevailing

practices of the concerned Banks / Govt. regulator shall not be

covered compulsorily. However bank branches may facilitate such

farmers for enrolment as non-loanee farmers.

c. Merely, sanctioning of crop loan against other collateral securities

including fixed deposits, gold / jewel loans, mortgage loans etc.

without having insurable interest of the farmer on the insurable land

and notified crops shall not be covered under the Scheme.

However it is proposed to insist the Financial Institutions for

coverage of other collateral securities mentioned above if

accompanied with Land records / Adangal.

C. Voluntary Component

a) The Scheme is optional for non-loanee farmers.

4

b) The insurance coverage will strictly be equivalent to sum insured

per hectare, as defined in the Government notification or / and on

National Crop Insurance Portal multiplied by sown area for notified

crop.

c) Special efforts shall be made to ensure maximum coverage of SC /

ST/ Women farmers under the Scheme. Further Panchayat Raj

Institutions (PRIs) may be involved in extension and awareness

creation amongst farmers and obtaining feed-back of farmers about

the implementation of the Scheme,

d) The implementing Insurance Company selected as L1 will be

responsible for taking necessary measures to ensure at least 10%

incremental increase in coverage of non-loanee farmers every

year.

e) The Para No.3.1.4. of the Revised Operational guidelines state that

engaging companies other than L1 for enrolling Non-Loanee

farmers will be taken up on pilot basis in districts notified by the

State Government. It has also has been indicated that other

empanelled Insurance Companies which have participated in the

bidding and are keen for enrolment of non loanee farmers in the

cluster will be allowed to enrol non-loanee farmers at L1 premium

rate.

However the State Department of Agriculture during the 42nd

State Level Coordination Committee on Crop Insurance

(SLCCCI) convened for finalization of draft Tender Document

decided not to implement the clause as this will lead to multiple

enrolment, difficulty in monitoring the collection of premium

subsidy, settlement of excess state share of premium subsidy

& delay in disbursement of compensation.

f) As per Para No.17.7.1 of OG, the Farmers covered on voluntary

basis can buy insurance before actual sowing / planting, based

on advance crop planning by furnishing sowing certificate.

The State Department of Agriculture during the 42nd SLCCCI

meeting decided that “Even though the farmer enrolls himself

before the cut - off date for enrolment, he will be eligible for

5

claims if he takes sowing within 15 days from the cutoff date

for enrolment but before the concerned season (Kharif /

Special Season / Rabi). This will be applicable for both

prevented sowing and yield loss”.

viii. The insurance companies have to refund the excess premium if a farmer

changes the crop planned earlier and the premium paid was higher for the

original crop planned.

While accepting the Proposal and the premium from aforesaid designated

agents, other authorized channel partner or insurance intermediaries approved

by IRDA, it shall be the responsibility of selected Insurance Companies or its

designated agents to verify insurable interest and collect the land records,

Aadhaar Number, particulars of acreage, sum insured, crop sown etc. and

applicable contract/ agreement details in case of share croppers/ tenant

farmers. The designated intermediaries shall enter the data of farmers on web-

portal, remit the premium with consolidated proposals within 2 days.

ix. COVERAGE OF CROPS

A. The district-wise, season-wise crops and Insurance Units furnished

in the Annexure III should be covered.

B. As per Para 7.2.7 of the revised OG, the Department of Agriculture,

Government of Tamil Nadu if required, will notify additional IUs or de-

notify certain IUs for the current season or subsequent seasons subject

to maximum deviation of 10% of already notified IUs for the crop within a

district at the same premium rate, before the cut-off date for debit of

premium. If the deviation is >10% or in case of addition of new crop,

actuarial premium rate may be worked out either by calculation of

weighted average premium rate as prevalent in contiguous districts

or by applying appropriate loading on the existing premium rate.

The rates for such crops will be determined / verified by TSU and its

decision will be binding on both States and Insurance Companies.

C. The Scheme will be operated on the principle of “Area Approach” in the

selected defined areas called Insurance Unit (IU).

D. The State Government will notify crops and defined areas covered during

the season in accordance with decision taken in the meeting of SLCCCI.

6

E. The State Government will notify revenue Village as insurance unit

for major crops and Firka for Minor crops. The sown area of a crop

that is at least 25% of Gross Cropped Area in a District / Taluk or

equivalent level will be considered as a major crop and for deciding the

Insurance Unit level as per the Revised Operational Guidelines of

Government of India.

The State Department of Agriculture during the 42nd SLCCCI

meeting decided that a minimum of 20 hectares should have

been cultivated in the past best years for notifying a crop at

Revenue Village level (Major crop) and a minimum of 50

hectares should have been cultivated for notifying a crop at

Firka level (Minor crop).

F. Insurance Units and Crops given in Annexure are subject to

addition or deletion to an extent of 10% of total sum insured. The

Insurance Companies shall abide by this.

G. The Insurance Companies shall reconcile with the Department of

Economics & Statistics for any discrepancies noted in the hierarchy of

the notified units at any stage of implementation of the scheme during

enrolment, implementation / uploading on Government portal while

processing the compensation.

x. COVERAGE OF RISKS & EXCLUSIONS

Following stages of the crop risks leading to crop loss will be covered under the

Scheme.

A. Prevented Sowing/Planting/Germination Risk : Coverage should be

provided to insured area where sowing/ planting/germination is

prevented due to deficit rainfall or adverse seasonal/weather conditions.

B. Standing Crop (Sowing to Harvesting) : Comprehensive risk insurance

should be provided to cover yield losses due to non-preventable risks, viz.

Drought, Dry spell, Flood, Inundation, widespread Pests and Disease

attack, Landslides, Fire due to natural causes ,Lightening, Storm,

Hailstorm and Cyclone.

C. Post-Harvest Losses : Coverage should be provided to those crops

which are required to be dried in cut and spread / small bundled condition

in the field after harvesting against specific perils of Hailstorm, Cyclone,

7

Cyclonic rains and Unseasonal rains. This shall be available upto a

maximum period of two weeks from harvesting,

D. Localized Calamities : Loss / damage to notified insured crops resulting

from occurrence of identified localized risks of Hailstorm, Landslide,

Inundation, Cloud burst and Natural fire due to lightening affecting

isolated farms should be covered in the notified area.

E. Add-on coverage for crop loss due to attack by wild animals:

1. Add-on coverage for crop loss due to attack by wild animals / birds such

as Wild boar, elephant, monkeys, peacocks etc shall be provided. This

risk insurance shall be implemented after Government of India

issues detailed protocol and procedure for evaluation of bids.

2. The add-on coverage will be optional for the farmers and applicable

notional premium will be borne by the farmer.

3. The actuarial premium rates for add-on coverage should be

furnished by the empanelled Insurance Companies participating in

the tender for the districts furnished in the Annexure.

4. The add-on actuarial premium rate will be considered separately and

shall not form a part of evaluation of L1.

F. General Exclusions: Losses arising out of war and nuclear risks,

malicious damage and other preventable risks shall be excluded.

G. Claims shall be calculated based on the loss assessment report submitted

by the Department of Agriculture / average yield submitted by the

Department of Economics & Statistics.

H. In case requisite number of CCEs could not be conducted due to non-

availability of adequate cropped area, the yield estimates for such IUs can

be generated by using the data in the following priority as decided by the

State Level Coordination Committee on Crop Insurance : at next higher

unit ; nearest neighbouring unit and weighted average of contiguous unit a.

2. NOTIFICATION OF INDEMNITY LEVEL, AVERAGE YIELD AND THRESHOLD YIELD

a. Three levels of Indemnity, viz., 70%, 80% and 90% are hereby notified and the

districtwise indemnity levels have been furnished in the Annexure II.

b. Threshold Yield (TY) furnished in the Tender document for the current season has to

be used for claim calculation for the season.

8

c. The Average Yield of a notified crop in Insurance Unit (IU) will be average yield of best

five years out of last seven years.

d. The Threshold yield of the notified crop is equal to Average Yield multiplied by

Indemnity level.

e. The yield unit of final produce provided by the Department of Economics &

Statistics for various Agricultural crops to be taken for computation of TY is as

follows:

Crop Name Form of Final Produce

Paddy (I) – Paddy ( Kar/Kuruvai/Sornavari)

Rice (Kg/Hec)

Paddy (II) – Paddy (Samba/Thaladi/Pishanam)

Rice (Kg/Hec)

Paddy (III) – Paddy ( Navarai/Kodai)

Rice (Kg/Hec)

Cholam(Jowar) Dry grains (Kg/Hec)

Cumbu (Bajra) Dry grains (Kg/Hec)

Maize – I, II, III Dry grains (Kg/Hec)

Ragi (Finger millet) Dry grains (Kg/Hec)

Samai (Little millet) Dry grains (Kg/Hec)

Pulses – Blackgram, Green gram, Redgram, Cowpea, Horse gram, Bengal gram

Dry grains (Kg/Hec)

Sunflower Dry Seeds (Kg/Hec)

Cotton – I, II , III Lint (Kg/Hec)

Groundnut Dry Pods (Kg/Hec)

Gingelly (Sesame) Dry Seeds (Kg/Hec)

Sugarcane Sugarcane (Tonnes/Hec)

f. The Revised Operational Guidelines regarding notification of Threshold Yield will be

followed.(Para 23.2)

g. CALCULATION AND NOTIFICATION OF THRESHOLD YIELD:

i. Historical average yield of best five out of last seven years should be considered

for calculation of Threshold Yield.

ii. Threshold Yield should be defined only at notified area level and once notified in

the Notification issued by the State will not be changed at later stage under any

circumstances.

iii. As this is a multi-year contract, the Threshold Yield for the subsequent years will

be revised by adding/considering the yields of immediate previous corresponding

season.

iv. The revised TY and Sum Insured (if revised) will be notified accordingly at the

beginning of each crop season.

9

3. NOTIFICATION OF SEASONALITY DISCIPLINE

a. The cut-off date is uniform for both loanee and non-loanee cultivators as furnished in

Annexure V.

b. In case the cut-off date falls on a public holiday or is declared as public holiday by the

Govt. or there is disruption of services due to strikes/shut-down etc., the next working

day will be treated as the cut-off date as per para No.16.3 of the revised OG.

c. In case of disruption of services due to natural events beyond human control or

technical/software/network issues with the National Crop Insurance Portal the

subsequent dates (other than the cut-off dates for Enrolment/Premium

Debit/Collection) will be extended by the Department of Agriculture, Government of

Tamil Nadu on the basis of specific written inputs from Portal Development and

Maintenance Agency.

d. The cut-off date fixed for enrolment during the SLCCCI meeting conducted prior

to the season will be the final.

e. In case of three crops / season pattern, a modified seasonality discipline will be

adopted by SLCCCI especially for Paddy, Maize, Cotton Pulses, Rice Fallow

Pulses, Sugarcane and Onion.

4. ENGAGEMENT OF COMMON SERVICE CENTRES (CSCS) AND INTERMEDIARIES FOR COVERAGE OF NON-LOANEE FARMERS:

a. All selected Insurance Companies will compulsorily be required to enter into an

agreement with CSC for enrolment of non-loanee farmers and for provision of other

defined services to farmers.

b. Selected Insurance Companies have to necessarily register on the portal and submit

the list and details of agents/intermediaries engaged for enrolment of non-loanee

farmers in the beginning of each season within 10 days of award of work by the

State.

c. All agents/intermediaries have to work strictly as per the provisions of the Scheme

and IRDA regulations.

5. TIMELINESS OF DATA ENTRY AND FORWARD OF PROPOSALS TO ICs BY BANKS

Insurance Companies shall ensure the entry of Loanee & Non Loanee farmers

details on Government of India portal within the stipulated time by following up with the

Financial Institutions(Commercial Banks/PACCS) as per the Revised Operational

Guidelines of Pradhan Mantri Fasal Bima Yojana.

10

6. TIMELINESS OF AUDIT AND RECONCILIATION Insurance Companies shall inspect & audit the records of enrolled farmers

especially Non Loanee in the branches of Financial Institutions and CSCs within 15

days from the cut - off date of enrolment to verify the records collected by them for

enrolment.

7. RETURNING OF FARMERS’ PREMIUM IN CASE OF REJECTION OF PROPOSALS:-

If the Insurance Companies do not return the farmers premium in respect of

rejected case before obtaining the final instalment of final subsidy bill from the State

Government, then Insurance Companies have to settle insurance claims of all such

farmers. It shall not be open for the Insurance Company to take a stand that these

cases had been rejected by them and deny for settling the claims.

8. SUM INSURED / COVERAGE LIMIT

a. Sum Insured per hectare for both loanee and non-loanee farmers will be same and

equal to the Scale of Finance as decided by the SLTC and would be pre-declared by

SLCCCI and notified.

b. No other calculation of Scale of Finance will be applicable.

c. Sum Insured for individual farmer is equal to the SOF per hectare multiplied by area

of the notified crop proposed by the farmer for insurance.

d. Area under cultivation will always be expressed in „hectare‟. Conversion of

premium from 1 acre to 1 Hectare should be made by adopting the

multiplication factor 2.47 ( One Hectare = 2.47 Acres)

9. PREMIUM RATES AND PREMIUM SUBSIDY

The rate of premium payable by the farmer will be as per the following table :

Season Crop Maximum Premium payable by farmer

(% of Sum Insured)*

Kharif All food grain and Oilseeds crops (all Cereals, Millets, Pulses and Oilseeds crops)

2.0% of SI or Actuarial rate, whichever is less

Rabi All food grain and Oilseeds crops (all Cereals, Millets, Pulses and Oilseeds crops)

1.5 % of SI or Actuarial rate, whichever is less

Kharif & Rabi Annual Commercial/ Annual Horticultural crops

5% of SI or Actuarial rate, whichever is less

Perennial horticultural crops (pilot basis)

5% of SI or Actuarial rate, whichever is less

* Premium paid by non loanee farmers should be rounded off in Rupee terms.

11

10. RECONCILIATION OF INDIVIDUAL FARMERS DETAILS, SUM INSURED, PREMIUM AMOUNT COLLECTED BY FINANCIAL INSTITUTIONS AND COMMON SERVICE CENTRES

a. Selected Insurance Companies have to upload requisite information including

necessary documentation in respect of non - loanee farmers enrolled through

channel partner other than CSCs on the National Crop Insurance Portal within the

stipulated date of coverage of non loanee farmers.

b. All intermediaries of the Selected Insurance Companies should ensure that the

documentation is complete in all respect before accepting the premium.

c. The Insurance companies are responsible to collect the premium, reconcile

and settle the compensation claims for the eligible farmers enrolled through

the intermediaries appointed by them. Disputes in settlement of claims

arising out of short premium or other reasons due to mismanagement of

intermediaries should be dealt by the concerned Insurance Companies

appointing the intermediaries.

d. It is the responsibility of the concerned Insurance Companies to collect /

obtain any documentation of the insured farmers (both loanee and

non-loanee) from the bank/financial institutions/ intermediaries/ agents if

necessary for verification/acceptance of risk and also to facilitate the banks/

financial institutions/ intermediaries/ agents to submit/ upload all requisite

documents/information on the National Crop Insurance Portal within the

timeline.

e. The selected Insurance Companies should reconcile all the requisite details

with the Financial Institutions and Common Service Centres.

f. Selected Insurance Companies should reconcile the details along with farmer‟s

share of premium receipt before approaching the Government to release the final

instalment of subsidy (third Instalment) under the Scheme.

g. All Insurance Companies should compulsorily verify and take necessary action

including approval / rejection of proposal or policy of any farmer through National

Crop Insurance Portal within stipulated date. After stipulated period for

reconciliation & obtaining further clarification from stakeholders, all pending

proposals/information of insured/covered farmers uploaded on Crop

Insurance Portal will be treated as approved and Insurance Companies will

cease their right for any further verification. However, any losses to the Govt.

including excess payment of premium subsidy due to delayed/non- verification of

12

data/information of individual covered/insured farmers on crop insurance Portal will

be recovered from the concerned Insurance Companies only.

11. ESTABLISHMENT OF FUNCTIONAL OFFICES & MANPOWER BY THE INSURANCE COMPANIES

a. As per Para No.35.4.16 of revised OG of PMFBY, selected Insurance Companies

should establish a functional office at Taluk level in each District and at least one

agent should be deployed at the Block level in the allocated Districts. Insurance

Company shall deploy one agri graduate in each district. Details of the offices

including contact number of the person should compulsorily be uploaded on

National Crop Insurance Portal.

b. Selected Insurance Companies should deploy sufficient manpower to co-observe

CCEs and allied activities and compulsory use of CCE Co-observation app.

c. Selected Insurance Companies should compulsorily deploy one well conversant

official at the office of head of Steering Committee for at least 3 months of the

harvesting period for better coordination and obtaining the information of CCEs

etc. District Administration will provide requisite space and logistics at the office for

the insurance company official.

d. Selected Insurance Companies should permanently station one representative at

the concerned district office of the dept / agency mandated to conduct CCEs for

proper day to day liaison.

e. The State Government will be at liberty to take action in consultation with

Government of India if the selected Insurance companies fail to comply with

clauses (A – D) at a later date.

12. USE OF INNOVATIVE TECHNOLOGIES

a. The Remote Sensing Based Information & Insurance for Crops in Emerging

Economies (RIICE) Project of Tamil Nadu Agricultural University (TNAU) will be

adopted for Computation of Area & Yield Loss under Prevented Sowing for Paddy,

Maize and Cotton during the 3 year period contract. New crops will be added

subsequently for which SLCCCI approval will be obtained in due course.

b. Tamil Nadu Agricultural University (TNAU) will provide Remote sensing based

information and Crop Signatures on payment to the selected Insurance Companies.

c. The selected Insurance Companies shall sign necessary Memorandum of

Understanding with Tamil Nadu Agricultural University (TNAU) for the use of this

technology.

13

d. Drones available with Tamil Nadu Agricultural University (TNAU) shall also be

engaged for yield estimation. [[[[ 13. SELECTION OF INSURANCE COMPANIES AS IMPLEMENTING AGENCY (IA) :

a. Tender period is for 3 years from 2019-2020 to 2021-2022.

b. The Insurance Companies will be selected only from the list of Insurance Companies

empanelled by Department of Agriculture, Co-operation & Farmers Welfare, Ministry

of Agriculture & Farmers Welfare, Government of India, New Delhi.

c. The selected Insurance Companies will be the Implementing Agency (IA) for

implementation of Pradhan Mantri Fasal Bima Yojana (PMFBY) in Tamil Nadu.

d. The selection of Implementing Agency (IA) will be made by adopting the cluster

approach.

e. The pre-qualified (Empanelled) Companies should submit district-wise and crop-wise

actuarial premium rates in percentage of Sum Insured (financial bid).

f. Indemnity Level, Threshold Yields, Sum Insured etc. will be same for all Insurance

Companies for the season.

g. All the empanelled companies participating in bidding have to bid the premium

rates for all the crops for all the seasons for all 6 clusters.

h. The empanelled companies participating in bidding have to bid the premium

rates for all the crops notified / to be notified in the cluster by the Department

of Agriculture, Tamil Nadu. In case any company does not quote for one or

more notified crops in various districts within the cluster for any season, that

bid will be rejected for that cluster.

i. The Implementing Agencies shall provide the details of methodology adopted to

arrive at the premium rates for all the districts crop combination quoted by them.

j. Based on the district-wise and crop-wise actuarial premium rates quoted by the pre-

qualified companies, the total premium amount and weighted average premium rates

for cluster of districts will be worked out to arrive at L1. L1 Bidder will be selected to

act as Implementing Agency in the concerned cluster. However, it may be noted that

the probable acreage coverage annexed is only for the purpose of calculating

weighted premium. This is only an indicative and will be used for evaluating L1

bidder. This area is only an estimation and is only approximation. The enrolment

depends on the farmers as it is a voluntary scheme.

14

k. The State Government gives no guarantee that the final coverage will be as per the

provided figures. The Insurance Companies are bound to honour the coverage

irrespective of whether the coverage is more or less compared to the given figures.

l. Selection of Implementing Agency will be made for a minimum of 1 year and to the

maximum of three years.

m. The Insurance Companies quoting Lowest Weighted Premium Rate in the cluster for

all seasons in a year put together will be declared as L1 and will implement PMFBY

for both loanee and non - loanee farmers in all seasons.

n. The insurance coverage by the selected Insurance Companies in terms of number of

farmers and acreage should be at least at the level of corresponding previous

season (best coverage).

o. The implementing Insurance Company selected as L1 will be responsible for taking

necessary measures to ensure at least 10% incremental increase in coverage of

non - loanee farmers.

p. Selected Insurance Companies have to necessarily register on the portal and submit

the list and details of agents/intermediaries engaged for enrolment of non-loanee

farmers in the beginning of each season within 10 days of award of work in the State.

Further all agents/intermediaries have to work strictly as per the provisions of the

Scheme and IRDA regulations

q. L1 bidder will not be permitted to surrender any cluster / districts or partial

clusters/districts.

r. If any Insurance Company declines after being declared L1, it will be de-empanelled/

de-barred to implement crop insurance Scheme for the coming/next season(s) in the

State.

s. L2 will be given the cluster for implementing the crop insurance Scheme at L1

district-crop combination rates if L1 declines to implement the scheme and so on to

L3, L4 bidder with their consent.

t. All Such bidders will be required to simultaneously furnish appropriate reasons for

withdrawal/surrender/non acceptance in writing to State Govt. with a copy to

DAC&FW to enable further corrective measures and appropriate administrative &

legal action accordingly.

u. Financial losses, if any, to the State Govt., in retendering due to withdrawal of

selected bidders, will be recovered from withdrawing L1 bidder.

15

FINANCIAL BID FORMAT

The Insurance Companies shall only fill up the premium in percentage in the

quote sheets attached with the tender document. A soft copy of the same shall also be

submitted in excel format in a USB Drive along with hard copy of the bid submitted in a

sealed cover. In case of differences in the rates quoted in hard copy and soft copy ( in

pen drive in a separate cover), the lowest rate will be considered for evaluation.

14. RESPONSIBILITIES OF SELECTED INSURANCE COMPANIES AS

IMPLEMENTING AGENCY (IA) :

a. Liaise with the State Government and Agencies/ Institutions/Committees involved in

implementation of PMFBY.

b. Furnish the necessary details to SLCCCI as may be required as per the notification.

c. Underwriting–responsibilities for processing and acceptance of risk.

d. Claim processing / finalization on receipt of yield data and payment within the

prescribed timelines.

e. Claim remittance shall be made directly into farmer‟s loan account for loanee farmers

and into saving Bank A/c for non-loanee farmers.

f. Obtain Re-insurance arrangements, if necessary.

g. Implementing Agency reserves the right to reduce/repudiate claims, if during

verification of bank records/land records and assessment of claims for loanee/

non-loanee farmers finds the following shortcomings.

1. Loan covered / premium paid outside seasonality discipline.

2. Actual sown area was less than the actual insured area under a crop in a

notified area (refer Section 25 of the revised OG of PMFBY).

3. Different crop other than the declared / insured was sown in the land survey

no. insured.

4. Survey number insured was not actual crop growing survey no.

5. Area insured is more than the total land holding of the farmer.

6. Multiple insurance for same crops grown on same land with multiple

insurers or through multiple banks/intermediaries.

7. Sum insured was more than the Scale of Finance for the insured crop

8. To verify the bank / land records when claims are reported due to clerical

errors / omissions. This can be done only before approval of claims.

16

The selected Insurance Companies should not reduce/repudiate claims

other than the reasons mentioned above.

h. Disclose designated Agents in writing before the inception of non-loanee enrolment

of farmers for the season.

i. Ensure timely payment of commission/ service charges to banks/other agents

for implementing the Scheme after completion of every season.

j. Awareness and publicity – extensive efforts to create awareness and generate

publicity for PMFBY at grass-roots level including bank branches. Also coordinate

with the Department of Agriculture, Government of Tamil Nadu and other agencies

for awareness and publicity of the Scheme.

k. The selected Insurance Companies should print and ensure availability of

sufficient number of Proposal forms, Registration forms, Declaration forms

and scheme booklets containing detailed guidelines, details of district-wise

notified crops & Insurance Units, Premium amount to be paid by the farmers in

adequate numbers to all stakeholders.

l. Provide monthly progress / returns / statistics / information demanded by the

Department of Agriculture, Government of Tamil Nadu and as and when requested

by the State Government.

m. Facilitate the bank branches/ intermediaries/ agents to upload the details of insured

farmers and beneficiaries with all requisite details on National Crop Insurance Portal

well in time.

n. Reconcile the farmers’ premium amount remitted by the financial institutions

in close coordination with the concerned banks.

o. Redressal of all Public Grievances within the time fixed by IRDAI. A centralized

farmer‟s help line number should be maintained for receiving the grievances of

farmers and should work on the docket system.

p. The coverage of loanee farmers should be carried out by Insurance Companies

themselves through banks / FIs. Coverage through agents/ brokers is not allowed.

q. Establish a functional office at Taluk level in each District and at least one

agent should be deployed at the Block level in the allocated Districts.

Insurance Company shall deploy one agri graduate in each district. These

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persons shall be effectively utilized for working in close coordination with the

District level Department officials / bankers / CSCs in implementing the

scheme from the stage of enrolment to disbursement of claims to the farmers

besides supporting the bankers in reconciliation of farmers’ premium,

uploading on GOI portal and remittance to ICs within the stipulated time.

Details of the offices including contact number of the person should

compulsorily be uploaded on National Crop Insurance Portal.

r. Deployment of sufficient manpower to co-observe CCEs and allied activities and

compulsory use of CCE Co-observation app.

15. PUBLICITY AND AWARENESS

a. Selected Insurance Companies should conduct Publicity and Awareness

immediately on receipt of award of work.

b. Adequate publicity should to be given in all the villages of the notified districts/areas

in the clusters awarded.

c. All possible means of electronic and print media, farmer‟s fair, exhibitions, SMS,

short films and documentaries shall be utilized to create and disseminate

awareness about provisions and benefits of the Scheme among the cultivators and

the agencies involved in implementing the Scheme.

d. All the publicity material / information should necessarily be uploaded on the

National Crop Insurance Portal along with coverage / frequency / duration date etc.

e. The selected Insurance Companies in coordination with District Level Monitoring

Committee shall chalk out plan for capacity building of the associated agents,

banks etc for effective implementation of the Scheme and organize training

workshops / sensitization programme for them.

f. The Selected Insurance companies should spend 0.5% of the total gross

premium for publicity expenses at the field level and the corresponding

details should be submitted to the Department of Agriculture, Government of

Tamil Nadu at the end of every season. In case of expenditure in this category is

less than 0.5% of Total Gross Premium, the IC should deposit the difference in

Technology fund to GOI within 3 months of cut - off date for enrolment.

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16. SERVICE CHARGES

a. To Banks

i. Bank and other financial institutions etc. should be paid service charges @ 4% of

the farmer‟s share of premium by Insurance Company as generated from the Portal

and within 15 days of finalization of business statistics.

ii. If there is delay in payment of service charges by Insurance Company beyond 15

days of finalization of business statistics, amount needs to be paid with interest

@12% p.a.

iii. Even if the farmer‟s share of premium is contributed / financed by Government of

Tamil Nadu,. the applicable service charges shall be paid by the concerned

Insurance Company only.

iv. No service charges shall be paid to the concerned bank / branch for the

applications for which any anomaly / deficiency / misrepresentation of details / data

is found.

b. To CSC & Other Intermediaries

i. Common Service Centres shall be paid service charges by Insurance Companies,

as decided by GOI, per farmer application form successfully submitted by them.

This includes charges for submission of electronic data of farmers along with

uploading of copy of LPC/Land records/ /contract document or any other document

defined by Government of Tamil Nadu to identify share-cropper/tenant farmer, self

declaration of intent to sow the proposed crop or sown crop/sowing certificate as

notified by State., Bank Passbook, upto 5 pages and print out of one page of

premium acknowledgement receipt..

ii. No service charges shall be paid to CSC for the applications for which any

anomaly/ deficiency/ misrepresentation of details/data is found.

17. GOODS & SERVICE TAX (GST)

As per Section 28 of the revised OG of PMFBY, collection of premium under

the Scheme is exempted from applicability of Goods & Service Tax (GST).

18. CLAIM LIABILITY:

i. The loss reports and Actual Yield data shall be approved/reverted (in case of any

discrepancy/concern on the authenticity/correctness of report/data) by the Insurance

Company based on which the eligible claims shall be calculated through the Portal

and accordingly the payment of claims shall be initiated by the concerned Insurance

Company and remitted directly into beneficiary account as per predefined timelines.

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ii. The application wise payment details viz. amount, reference number, date etc. shall

be entered / synchronised with the National Crop Insurance Portal for future

reference and audit purpose.

iii. In case of widespread calamity (end of season claims), once yield data is received /

finalized by the Department of Agriculture, Government of Tamil Nadu, as per the

cut-off-dates decided, claims will be worked out on the National Crop Insurance

Portal as per declarations / approved proposals & covered farmer‟s data received

from banks / channel partners / insurance intermediaries for each notified area and

crops and accordingly the claims should be approved by Competent Authority of

implementing Insurance Company.

iv. In case of farmers covered through Financial Institution, claims shall be released

only through electronic transfer directly into insured farmer‟s given bank account,

followed by details containing claim particulars, to individual bank branches/ nodal

banks; Insurance Company is required to compulsorily upload the claim details

against each insured farmer on National crop insurance Portal.

v. In case of farmers covered on voluntary basis through intermediaries, payable claims

should directly be credited to the bank accounts of concerned insured farmers and

details of the claims may also be intimated to them. The list of beneficiaries shall

also be uploaded on National Crop Insurance Portal immediately.

vi. In case of claims under prevented/failed sowing, localized calamities, post-

harvest losses; Insurance Company should process the claims after assessment

and shall release the claims as per detailed procedure given in the relevant

sections of the revised OGs of PMFBY.

vii. In case of any error, omissions and mis-reporting, the decision of the SLCCCI

will be final and it is obligatory on the part of the selected Insurance

Companies to comply. However, if the Insurance companies differ in the

decisions taken by the SLCCCI, the concerned company shall resolve the

issue within a period of 15 days beyond which the decision of SLCCCI will be

final.

viii. Disputed claims / sub-standard claims, if any, due to erroneous data will be

taken up by SLCCCI / STAC for resolving the dispute within the timeline

stipulated by Government of India in the revised guidelines of PMFBY.

However the decision by the committee will be binding on concerned

Insurance Company.

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ix. The selected Insurance Companies should scrupulously follow the revised guidelines

issued for Acreage discrepancy under section 25.

x. Calculation of Area Correction Factor (ACF) if any shall be made immediately after

receipt of insured acreage and sown area data but not later than the onset of CCEs.

xi. Similarly any anomaly in the actual yield data shall immediately be brought into the

notice of Department of Agriculture, Government of Tamil Nadu and not later than 15

days from the final receipt of actual yield data as detailed in section 25.

xii. Insurance Companies should calculate crop-wise, IU wise payable claims

based on the actual yield data and threshold yield given at the time of

tendering. Accordingly, the payable claims subject to payment of full premium

share by the Central and State Government for the season shall be remitted by

the Insurance Companies directly into benefitted farmer’s accounts

electronically, payment details for which shall be updated on the National Crop

Insurance Portal on daily basis.

xiii. About 5% of the beneficiaries should be verified by Regional Offices/Local

level Offices of ICs and send the feedback to concerned DLMC and State

Govt./State Level Coordination Committee on Crop Insurance

xiv. To facilitate settlement of prevented risk/ mid season adversity/localized

claims: Selected Insurance Companies should release the admissible claim amount

to the beneficiary immediately after receipt of farmers premium and advance subsidy

(First Instalment) without waiting for release of final subsidy (Second Instalment)

from Government. The premium in respect of affected IUs including subsidy to

enable settlement of claims arising due to above events in respect of all such

beneficiaries shall be adjusted from the fund already available with ICs as advance

upfront subsidy (First Instalment) to facilitate compliance of Section 64 B of

Insurance Act/Regulation of IRDAI.

xv. All admissible claims based on Yield data/Post harvest losses should be settled on

receipt of second installment of Government subsidy to be paid on the basis of

tentative business statistics generated on the portal after 15 days of period specified

for auto approval of applications on the Portal. The remaining Govternment subsidy,

if any will be paid after reconciliation of all business statistics for the season on

portal.

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xvi. All empanelled insurance companies including private insurance companies shall

provide free access to the State level agencies including CAG authorized to verify

the accounts and audit in respect of Crop Insurance.

xvii. The Selected Insurance Companies should compulsorily share information on

enrolment, basis for calculation of claims, Disbursement of claims etc with the

Department of Agriculture, Government of Tamil Nadu.

xviii. In a situation where total claims have been approved / auto approved, the company

shall be liable to pay claims within 2 weeks of calculation / auto approval of claims

irrespective of whether Insurance Companies have raised the bill for 2nd instalment of

premium subsidy or not. Hence, it is binding on the Insurance Company to seek the

2nd instalment of premium subsidy within the timelines.

xix. All admissible claims shall mandatorily be paid within the stipulated cutoff

date failing which penal interest @ 12% per annum shall be payable on

admissible pending claims beyond 30 days of uploading AY on portal/provided

in soft copy by State Govt. subject to release of applicable subsidy by State

Govt.

xx. Wherever the yield estimates reported at IU level are abnormally low or high vis-à-vis

the general crop condition, the Insurance Company in consultation with State Govt.

can make use of various products (e.g. Satellite based Vegetation Index, Weather

parameters, etc.) or other technologies (including statistical test, crop models etc.) to

confirm yield estimates.

xxi. If Insurance Company witnesses any anomaly/deficiency in the actual yield data

(partial /consolidated) received from the State Govt., the same shall be brought to

the notice of Department of Agriculture, Government of Tamil Nadu within 7 days

from the date of receipt of yield data with specific observations/remarks under

intimation to Govt. of India. The anomaly, if any, will be resolved in next 7 days by

the State Level Coordination Committee on Crop Insurance (SLCCCI) headed by

Agricultural Production Commissioner & Principal Secretary, Agriculture Department.

This committee is authorized to decide all such cases and the decision in such cases

will be final.

19. CALCULATION OF THRESHOLD YIELD (TY) :

Department of Economics & Statistics should provide 10 years’

historical yield data (from 2008-2009 to 2018-2019) in soft format (in Excel) in

English to Insurance Companies for calculation of threshold yield, premium

22

rates etc. at insurance unit area and in its absence, data at next higher

unit/nearest neighbouring unit/weighted average of contiguous units, as decided by

the SLCCCI shall be used.

20. ELIGIBILITY CRITERIA FOR TENDERING:

The bidders should be empanelled by the GOI for the purpose of

implementing PMFBY and should not have been de-empanelled.

21. COST OF TENDERING:

The bidders shall bear all costs associated with the preparation and

submission of this Tender and the tender accepting authority will in no case be

responsible or liable for these costs.

22. CONTENTS OF TENDER DOCUMENT

This Tender document will be a single cover system of Quoting Premium

Rates for Kharif, Rabi and Special seasons (separate quote to be furnished for each

year) to be insured under PMFBY to be implemented in the cluster districts of Tamil

Nadu during 2019 - 2020, 2020 - 2021 and 2021- 2022. The tender committee is the

deciding authority to finalize the rates.

The Insurance companies have to furnish premium quote upto two

decimals for all the districts in a cluster and for all the crops of a district.

23. GENERAL INSTRUCTIONS

The bidders are requested to go through the instructions, terms and

conditions and specifications given in the tender. Failure to furnish required

information in every aspect will be at the bidders risk and may result in the rejection

of the tender.

Separate user id and password will be given to each company and the bidders

are requested to quote the bids directly in the portal viz., www.tnagrisnet.tn.in by

clicking the scrolling message ( Crop Insurance – Bid Evaluation)

24. BIDDERS TO CHECK TENDER DOCUMENTS

The Bidder should check all the details in the tender documents and obtain his

own information on all matters which may in any way affect this tender, as no claim

for any alleged ignorance in respect thereof shall be entertained. The tender

document should be signed in all pages by an authorized signatory and the

same should be uploaded on the AGRISNET portal (www.tnagrisnet.tn.in). The

http://www.tnagrisnet.tn.in/


23

documents / certificates etc., mentioned elsewhere in this tender document including

the Check List, wherever applicable shall be a part of this tender and the bidder shall

submit the same in the cover. In addition to this, the bidder shall sign and submit

one copy of the blank document, including addendum/corrigendum (if any),

duly signed and stamped as a token of having read and accepted all the tender

conditions.

25. CLARIFICATION ON THE TENDER

A prospective bidder requiring any clarification on the tender may request the

Office of the Director of Agriculture by a letter or by fax or by e-mail. The Deputy

Director of Agriculture (Crop Insurance), Directorate of Agriculture will respond in

writing to any request for clarification in the tender. The e-mail reply from the

Directorate of Agriculture shall be treated as valid communication for the e-mail

communication sent by the bidders. Clarification, if any will be entertained only

till 11.02.2019.

26. AMENDMENTS TO THE TENDER

The Director of Agriculture may amend the tender wherever it is felt that such

an amendment is absolutely necessary.

Amendment to tender shall be given if found appropriate in response to the

clarifications by prospective bidders and it is solely the discretion of the Director of

Agriculture. Any amendment to the tender will be sent by mail to those who have

purchased the document from the Tender Inviting Authority. It is the responsibility of

the bidders to verify the amendments, if any, and get the amendment documents

before the submission of the tender, provided no such change could be effected 48

hours prior to the time fixed for opening of the tender. The Tender document is not

transferable under any circumstances.

Each bidder is eligible to submit only one tender. Any deviation to this criterion

may result in rejection of the tender.

27. TENDER PRICE AND CONTRACT REQUIREMENTS:

Premium rates should be quoted by Insurance Companies as per the

Operational Guidelines of GOI and in the format prescribed. The successful bidder

will be responsible for implementation of the PMFBY in all the Districts of the

concerned Cluster and will be responsible to inform the nationalized banks, Co-

operative banks and the Regional Rural Banks. A Cluster as a whole will be allotted

24

to a company for implementing the PMFBY and no two companies will be allowed to

operate in a particular Cluster. All payable claims shall be the responsibility of

insurance companies.

28. TENDER VALIDITY

Tender rate finalized for Kharif season, Rabi and Special seasons of

2019 - 2020 will remain valid for implementation of PMFBY in Tamil Nadu during

2019-2020. Performance of the scheme and companies will be evaluated and the

rates quoted for 2020 - 2021 and 2021- 2022 will be finalized based on the decision

of the tender committee.

29. TENDER SUBMISSION

I. DUE DATE FOR TENDER SUBMISSION:

The e-bidding on webportal will be closed sharply by 12.00 Noon on

21.02.2019 (Thursday). The tender document duly filled in, signed and stamped on

all pages shall be submitted in a sealed cover at Directorate of Agriculture, Chepauk,

Chennai-5 before 12.00 Noon on 21.02.2019 (Thursday) as per the procedures

laid down herein.

The Tender Inviting Authority will not be held responsible for any delay in the

receipt of the document by the bidder including loss of the document in transit or

delay in obtaining any document / certificate or on any other account. No extension

of date and time for submission of the tender will be given for any such delay. The

tender inviting authority may extend the due date for submission of tender by issuing

an amendment in which case all the rights and obligations of the Commissioner of

Agriculture and the bidder previously subject to the original due date for submission

will then be subject to the new date for tender submission.

Any Tender received by the Directorate of Agriculture after the due date and

time will not be considered and will be returned back to the bidder.

II. PROCEDURE FOR SUBMISSION OF TENDER: Bidders are advised to go through the tender documents and understand all

the provisions and stipulations contained therein before submitting the tender. The

tender shall be submitted as per the procedures and requirements stipulated herein.

The tender must be submitted so as to be received within the stipulated date and

time. Tender submitted by telex, cable or fax will not be accepted and will be

summarily rejected. The tender shall be submitted in sealed envelope and shall

be superscribed as follows.

25

NAME OF WORK

TENDER FOR IMPLEMENTATION OF PMFBY IN TAMIL NADU FOR PADDY I,II,III, KHARIF AND RABI SEASONS OF

2019 - 2020, 2020 - 2021 and 2021- 2022

“Premium Bid Cover”

(Specify Clusters for which premium rates are quoted)

DUE DATE/TIME

21.02.2019 (Thursday) - 12 Noon

The sealed tender envelope shall be addressed to

1. The Directorate of Agriculture, Chepauk, Chennai- 600 005.

2. The tender envelope shall carry the name and address of the Bidder

prominently with Phone No/ email ID / and FAX No.

3. The eligibility tender Cover shall contain the following as per the sequence

indicated below.

a. Documentary proof for empanelment by Department of Agriculture &

Cooperation (DAC), Government of India.

b. The details of tenders awarded to the company by other states and the

rates.

c. Plan and arrangements for implementation of the scheme in Tamil

Nadu.

d. Authorized person to attend the tender and negotiate with the tender

committee.

4. Premium rate should be quoted for each cluster separately. In each cluster, all

districts and all crops notified in each district should be clearly indicated

mentioning premium rate duly filled in the format without overwriting in both

numbers and words & with each page signed, dated and stamped with the seal

of the firm.

5. The bidder shall use the format for quoting premium rate as given in the tender

document.

6. Bidders are requested to quote their bids directly on the portal viz.,

www.tnagrisnet.tn.in by clicking the scrolling message (Crop Insurance –

Bid Evaluation) and also to submit the quotes in both hard copy and soft

copy at the time of submission of the tender.

7. In case of differences in the rates quoted in hard copy and soft copy ( in pen

drive in a separate cover), the lowest rate will be considered for evaluation.


26

III. AUTHORISATION OF THE TENDER

The tender shall be signed by a person or persons duly authorized to sign on

behalf of the bidder. All pages of the tender shall be signed by the person or persons

signing the tender. The bidder shall enclose a certified copy of the power of attorney

authorizing the signatory or signatories to sign the tender document.

The tender shall contain no alterations or additions, except those issued by

the Commissioner of Agriculture, or as necessary to correct errors made by the

bidder, in which case such corrections shall be signed by the person or persons

signing the tender. All the pages in the tender document should be signed by the

bidder, after filling the prices in figures.

30. TENDER OPENING

Tender will be opened in the presence of the bidder or their authorized

representative who choose to be present and the tender scrutiny committee on

21.02.2019 (Thursday) at 4.00 PM. The representative of bidder who attend the

tender opening must produce their identification proof and authorization letter from

the companies / bidder. In the event of the specified date of Tender opening being

declared a holiday, the tenders will be opened at the same time on the next working

day. On opening the tender, the details such as name of the bidder, address, etc.,

will be read out.

i. PROCESS TO BE CONFIDENTIAL

Information relating to the examination, clarification, evaluation and

comparison of tenders and recommendations for the award of contract will not be

disclosed to bidder or any other persons not officially concerned with such process

until the award to the successful bidder has been announced.

Any effort by a bidder to influence the tender accepting authority, scrutiny /

evaluation committee or its members in the processing of tenders or award decisions

may result in the rejection of his tender.

ii. PRICE BID OPENING

a. The Tender Inviting Authority will open the Premium Quote Cover i.e., “Price Bid

Cover” of the participating Company empanelled by GOI.

b. On opening the “Price Bid”, the price as quoted by the bidder will be read out.

c. The portal www.tnagrisnet.tn.gov.in will be closed and it will be opened in front of the

bidder.

d. The bidder is requested to ascertain that same rates are quoted in portal, soft copy


27

and hard copy.

iii. CRITERIA FOR PRICE BID EVALUATION

a. Tender evaluation will be carried out in accordance with the “Tamil Nadu

Transparency in Tenders Act, 1998 Rules 2000” and Rules 2012 and the Revised

Operational guidelines of GOI for PMFBY.

b. In premium bid evaluation the following procedures will be adopted.

c. The quoted premium shall be corrected for arithmetical errors.

The Tender Accepting Authority may carry out negotiation with lowest Bidder (L1)

as per evaluation.

The Tender Accepting Authority reserves the right to ask other Bidder to match the

L1 price if required, according to the Tamil Nadu Transparency in Tenders Rules

2000 and 2012.

The allotment of clusters will be apportioned among the L1 bidder and the other

bidders who are matching the L1 rate, at the discretion of Tender inviting authority

as per the provisions of Tamil Nadu Transparency in Tenders Act and Rules and

other terms and conditions of the Tender.

31. AWARD OF TENDER

i. The Chairman of the Tender Finalisation & Accepting Committee is the tender

inviting authority.

ii. The Tender Finalisation & Accepting Committee has the right to accept any tender

and to reject any or all tenders.

iii. The award of the tender will be made strictly in accordance with the “Tamil Nadu

Transparency in Tenders Act 1998 Rules 2000 and Rules 2012 and no deviation will

be made.

iv. Notwithstanding anything that is said herein, the tender accepting authority reserves

the right to accept or reject any tender, and to cancel the tendering process and

reject all tenders, at any time prior to the award of tender, without thereby incurring

any liability to the affected Bidder or Bidder or any obligation to inform the affected

Bidder or Bidder on the grounds for the tender accepting authority‟s action.

32. NOTIFICATION OF AWARD

The bidder whose tender has been accepted will be notified by the Tender

accepting Authority, in writing by registered letter. Notification of award will constitute

the formation of contract.

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33. SIGNING THE AGREEMENT

The successful bidder shall execute an agreement (three copies) on a non-

judicial stamp paper to the value of Rs.100/- embodying the terms and conditions of

the tender within 7 days from the date of acceptance of the tender. The specimen

form of agreement is enclosed (Appendix VIII). The successful bidder, if fails to

execute the agreement within the stipulated period, he will also be liable for all

damages arising there from such default including the cost of conducting fresh

tenders and the increase in rates if any, in the subsequent tender and shall

compensate for all losses sustained by the Government in this regard.

The premium rates of the contract are valid for the seasons from the

date of execution of Tender.

34. TERMINATION OF CONTRACT

i. TERMINATION FOR DEFAULT:

The Tender accepting authority may, without prejudice to any other remedy

for breach of contract, by written notice of default with a notice period of 7 days, sent

to the crop insurance companies, terminate the contract in whole or part, (i) if the

crop insurance companies fails to deliver any or all deliverable services within the

time period(s) specified in the Contract, or (ii) if the crop insurance companies fails to

perform any of the obligation(s) under the contract; or (iii) if the crop insurance

companies, in the judgment of the Tender accepting authority has engaged in

fraudulent and corrupt practices in competing for or in executing the contract.

In the event the Tender accepting authority terminates the contract, in

whole or in part, the Tender accepting authority may seek, upon such terms and in

such manner as it deems appropriate, the services similar to those offered earlier

and the crop insurance companies shall be liable to the Tender accepting authority

for any additional costs for such similar services. However, the crop insurance

companies shall continue the performance of the contract to the extent not

terminated.

ii. TERMINATION FOR CONVENIENCE:

The Tender accepting authority may issue notice, with a notice period of 7

days sent to the crop insurance companies and may terminate the Contract, in whole

or in part, at any time for its convenience. The notice of termination shall specify that

termination is for the Tender accepting authority‟s convenience, the extent to which

29

performance of work under the contract is terminated, and the date upon which such

termination becomes effective.

iii. SPECIAL CONDITIONS

Non-fulfillment of the contract on any grounds will be liable for all damages

arising there from such default including the cost of conducting fresh tenders and the

increase in rates if any in the subsequent tender and shall compensate for all losses

sustained by the Government in this regard.

If the Bidder fails to effect the services during the season, the Tender

accepting authority is at liberty to make alternate arrangement for such similar

services, for which orders have been issued to extend crop insurance services, from

any other bidder who might have quoted higher rate, at the risk and cost of the crop

insurance companies and in such case the Tender accepting authority has every

right to recover the cost and impose penalty, besides taking any other action.

If the crop insurance companies fail to offer services approved under this

contract, the crop insurance companies may be debarred from participating in the

subsequent tenders at the discretion of the Tender Accepting Authority.

In the event of non-compliance of the tender conditions by the crop

insurance companies, the Commissioner of Agriculture reserves the right to

reallocate or revise the allotment already approved at any time during the currency of

the tender period.

The premium rates should be quoted with reference to the crops for the

district in the cluster as mentioned in the tender schedule.

35. SALE OF TENDER DOCUMENT:

The non-transferable tender document with the relevant details can be

obtained from the Office of the Director of Agriculture, Chepauk, Chennai-5 on

any working day from 10.00 AM to 5.00 PM in person on payment of Rs.1,120/-

(Rs.1,000+ Rs.120 for GST) (Rupees One thousand one hundred and twenty

only) inclusive of GST by way of Demand Draft. Those desirous of obtaining a

tender document, by post, may send Demand Drafts, for a sum of Rs.1,190/-

(Rs.1,000+ Rs.120 for GST + Rs.70 for postal charges) (Rupees One thousand

one hundred and Ninety only) which is inclusive of GST and postal charges.

Demand Draft should be drawn in favour of the Director of Agriculture,

Chepauk, Chennai-600 005 payable at State Bank of India, Thousand Lights

30

Branch, Chennai-6. The Tender document may also be downloaded at free of

cost from Government website http://www.tnagrisnet.tn.gov.in

The time schedule for opening of the e- tender is as follows:

a Sale of tender document closes on 20.02.2019 - 5.00 P.M.

b e-bidding closure / last date and time for receipt of tender

21.02.2019 - 12 Noon

c Date and time of opening of tender through online

21.02.2019 - 4.00 PM

Director of Agriculture.


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ANNEXURE - I

FORMAT FOR FINANCIAL BID

Date:

From [insert Name & address of the Bidder]

To

The Director of Agriculture,

Chepauk,Chennai – 600 005.

Dear Sir,

Sub: Financial Bid for Implementation of the PMFBY in Tamil

Nadu State for Kharif, Rabi and Special seasons of

2019-2020, 2020-2021 & 2021-2022 – submitted - Reg.

With reference to your Tender Document dated (Insert Date) we,

[insert name of Bidder], wish to submit our Financial Bid for the award of the

Contract(s) for the implementation of the Pradhan Mantri Fasal Bima Yojana

(PMFBY) in Tamil Nadu State during Kharif, Rabi and Special seasons of

2019-2020, 2020-2021 & 2021-2022.

1. We hereby submit our Financial Bid, which is unconditional and

unqualified. We have examined the Tender Documents.

2. We acknowledge that the State Government will be relying on the

information provided in the Financial Bid for evaluation and comparison

of Financial Bids received from the designated / empanelled Insurance

companies by DAC&FW for the award of the implementation of the

PMFBY in the State. We certify that all information provided in the

Financial Bid is true and best to the knowledge of the company.

2

3. We shall make available to the State Government any clarification it

may find necessary or require to supplement or authenticate the facts

& figures in Financial Bid.

4. We acknowledge and declare that the State Government is not obliged

to return the Financial Bid or any part thereof or any information

provided along with the Financial Bid, other than in accordance with the

provisions set out in the Tender Documents.

5. We are quoting the Premium rates district-wise crop-wise for the

following clusters as per the attachment to this Appendix I (Format of

financial bid)

6. We acknowledge, confirm and undertake that we have an adequate

reinsurance support to safeguard the interest of the farmers, State

Government and Central Government.

7. We agree and undertake to abide by all the terms and conditions of the

Tender Document and Revised Operational Guidelines of PMFBY.

8. This Bid shall be governed by and construed in all respects according

to the laws for the time being in force in India. The competent courts

at State capital will have exclusive jurisdiction in the matter.

In witness thereof, we submit this Financial Bid under and in accordance with

the terms of the Tender Documents.

Dated this [insert] day of [insert month], 2019

[signature]

In the capacity of

Duly authorized to sign this Bid for and on behalf of

[Name of Bidder]

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QUOTING THE PREMIUM RATES FOR PMFBY – KHARIF, RABI AND SPECIAL

SEASONS OF 2019-2020 IN TAMIL NADU STATE

( as Attachment to Annexure I)

Name of the Company Quoting Tender:

Authorized Signatory for Quoting of rates:

(Enclose proof of delegation for signing of

the quote in original)

Cluster I

(Provide Contact person of the Insurance Company for each District)

District Season & Year

Crop (All notified Crops)

Premium Rates (in % of Sum Insured)

District 1 Crop -1

Crop -2

Crop -3

District 2 Crop -1

Crop -2

Crop -3

The Insurance Companies have to quote premium rates for all notified

crops in a district and for all districts in a cluster for Kharif Season, Special

Season and Rabi Seasons separately.

[Note to Bidders: The Bidders are required to quote the Premium

upto two decimal points.]

4








Cluster I





District 1 Crop -1

Crop -2

Crop -3

District 2 Crop -1

Crop -2

Crop -3






5








Cluster I





District 1 Crop -1

Crop -2

Crop -3

District 2 Crop -1

Crop -2

Crop -3






ANNEXURE II

CLUSTERS RISK LEVEL INDEMNITY

CLUSTER 1

Tiruvarur HIGH 70

Karur MEDIUM 80

Salem LOW 90

Krishnagiri LOW 90

Kanyakumari LOW 90

CLUSTER 2

Nagapattinam HIGH 70

Tirupur HIGH 70

Dindugul HIGH 70

Ariyalur MEDIUM 80

Kancheepuram LOW 90

CLUSTER 3

Thoothukudi HIGH 70

Madurai HIGH 70

Thanjavur MEDIUM 80

Nilgiris MEDIUM 80

Theni LOW 90

CLUSTER 4

Ramnad HIGH 70

Tiruchirapalli MEDIUM 80

Tiruvannamalai LOW 90

Vellore LOW 90

Dharmapuri LOW 90

CLUSTER 5

Pudukottai HIGH 70

Villupuram MEDIUM 80

Virudunagar MEDIUM 80

Namakkal MEDIUM 80

Perambalur MEDIUM 80

CLUSTER 6

Sivagangai HIGH 70

Tirunelveli HIGH 70

Cuddalore MEDIUM 80

Tiruvallur LOW 90

Erode LOW 90

Coimbatore LOW 90