Bore well drilling costs ₹50,000–₹5,00,000 — and if no water is found, that money is gone forever. Failed Well Insurance reimburses your actual drilling expenditure when a bore well, dug well, or tube well fails to yield water at the declared minimum yield. A Probitas Insurance Brokers rural product. PMKSY & Jal Jeevan Mission eligible.
Rural Insurance
Failed Well Insurance is a specialised rural insurance product by Probitas Insurance Brokers Ltd. (the insurer) that reimburses farmers, rural households, and community groups for their actual drilling expenditure when a bore well, dug well, or tube well fails to yield water at the declared minimum yield. After spending ₹50,000–₹5,00,000 on drilling, a farmer may find no water due to unfavourable geology — this financial loss has no other recovery. Linked to PMKSY, Jal Jeevan Mission, and NABARD RIDF schemes. Probitas Insurance Brokers Pvt. Ltd. (IRDAI Lic. No. 528) is your licensed broker.
Rotary / percussion drilled — 4–8 inch diameter — for deep groundwater
Wide-diameter manually excavated — 5–15 ft — traditional shallow well
Shallow driven well with filter screen — for sandy / alluvial areas
Village / panchayat bore well for collective drinking water supply
The Failed Well Insurance policy must be purchased and the inception date confirmed BEFORE the drilling contractor arrives on site and before drilling commences. The insurer verifies the policy inception date against the drilling contractor's first day of work / rig arrival date. Any policy purchased after drilling has already started is completely void — there are no exceptions to this rule. Call Probitas on 022 4302 0000 to buy your policy before booking the drilling contractor.
Farmers drilling bore wells under PMKSY (Pradhan Mantri Krishi Sinchayee Yojana), Jal Jeevan Mission, or NABARD Rural Infrastructure Development Fund (RIDF) are eligible for this insurance. For government-subsidised wells, insure only the farmer's share of the drilling cost — not the government's subsidised portion. The government does not need to be insured for its own subsidy contribution; the farmer insures only their personal financial exposure. Probitas will help you calculate the correct sum insured for your scheme.
Who Can Apply
Basis: The actual estimated cost of drilling to the proposed maximum depth — submitted with the proposal at inception, before drilling commences.
What is included: Rig hire / drilling charges + casing pipe cost + labour + transport of rig to site + other direct drilling costs.
Maximum SI per well: As per the insurer schedule — typically up to ₹2,00,000–₹5,00,000 depending on depth and state.
Indemnity Principle: Claim cannot exceed actual drilling cost proved by bills, even if declared SI is higher.
This policy pays actual drilling costs proved by bills and invoices — not the declared sum insured. Over-declaration does not increase your claim. The claim = actual cost incurred − compulsory excess. Always keep all contractor bills, casing pipe receipts, and labour records.
Plan Comparison
Compare coverage across different well types and use cases under the insurer Failed Well Insurance. All plans share the same critical condition — policy must be bought before drilling commences.
| Points of Difference | Agricultural Bore Well | Drinking Water Well (HH/Community) | Deep Bore Well (High Depth) |
|---|---|---|---|
| Total Failure — No Water (Zero Yield) | ✔ Yes | ✔ Yes | ✔ Yes |
| Partial Failure — Yield Below Declared Min. LPH | ✔ Yes | ✔ Yes | ✔ Yes |
| Bore Well / Tube Well (Rotary / Percussion) | ✔ Yes | ✔ Yes | ✔ Yes |
| Dug Well / Open Well | ✔ Yes | ✔ Yes | ✘ N/A |
| Filter Point Well | ✔ Yes | ✔ Yes | ✘ N/A |
| Community / Panchayat Well | ✘ No | ✔ Yes | ✔ Yes |
| PMKSY / Jal Jeevan Mission Eligible | ✔ PMKSY | ✔ JJM + PMKSY | ✔ NABARD RIDF |
| Rig Hire / Drilling Charges | ✔ Yes | ✔ Yes | ✔ Yes |
| Casing Pipe Cost (Steel / PVC) | ✔ Yes | ✔ Yes | ✔ Yes |
| Labour & Transport Charges | ✔ Yes | ✔ Yes | ✔ Yes |
| Typical Sum Insured Range | ₹50,000–₹1,50,000 | ₹30,000–₹2,00,000 | ₹1,00,000–₹5,00,000 |
| Typical Depth Range | 50–300 feet | 30–250 feet | 200–600 feet |
| Compulsory Excess | ₹ 5,000 | ₹ 5,000 | ₹ 5,000–₹10,000 |
| Hydrogeological Survey Recommended | Yes (loading if absent) | Yes (loading if absent) | Strongly Recommended |
| Licensed Contractor Required | Mandatory | Mandatory | Mandatory |
| Policy Inception vs Drilling | BEFORE drilling only | BEFORE drilling only | BEFORE drilling only |
Coverage Under Failed Well Insurance
The policy reimburses actual drilling expenditure when the well fails — either completely (no water) or partially (yield below declared minimum LPH threshold). The "failed well" definition is precise and declared at inception.
Total Failure — Zero Yield: The well has been drilled to the full declared maximum depth (in feet) without yielding any water at all. The drilling contractor's completion certificate confirms: "well drilled to [X] feet — no water encountered."
Partial Failure — Below Minimum Yield: The well yields water but at a quantity below the declared minimum yield threshold (in litres per hour / gallons per minute) as stated in the policy at inception — and certified by the authorised hydrogeologist / government officer at claim time.
How Claims Are Calculated
Claim = Actual drilling cost incurred (proved by bills / invoices) − Compulsory Excess
Subject to declared sum insured as the maximum limit. The claim cannot exceed the lower of: (a) declared sum insured, or (b) actual drilling cost proved by invoices.
The "failed well" status must be certified by the state groundwater authority officer / insurer-appointed hydrogeologist.
If you declare a sum insured of ₹90,000 but actual drilling cost is only ₹75,000 — the claim is limited to ₹75,000 minus excess. Over-declaring the sum insured is treated as misrepresentation. Always declare the actual bona fide estimate from your drilling contractor's quotation.
For wells drilled under PMKSY, Jal Jeevan Mission, or state subsidy schemes: insure only the farmer's share of the drilling cost — not the total drilling cost including the government's subsidy. Example: If total drilling cost is ₹1,00,000 and the government pays 50% (₹50,000), the farmer insures only their ₹50,000 exposure.
| Parameter | Bore Well — Total Failure (No Water) | Bore Well — Partial Failure (Low Yield) | Dug Well — Total Failure |
|---|---|---|---|
| Well Type | Bore Well (Rotary) | Bore Well (Rotary) | Dug Well / Open Well |
| Proposed Maximum Depth | 300 feet | 250 feet | 35 feet depth |
| Declared Minimum Yield | — | 500 LPH | — |
| Declared Sum Insured | ₹ 90,000 | ₹ 75,000 | ₹ 1,20,000 |
| Actual Depth Drilled | 300 feet | 250 feet | 35 feet |
| Actual Water Yield | NIL — total failure | 150 LPH (below 500 LPH min.) | NIL — total failure |
| Actual Drilling Cost (bills) | ₹ 85,000 | ₹ 70,000 | ₹ 1,10,000 |
| Claim Basis | Actual cost (≤ SI) | Actual cost (≤ SI) — 100% failed | Actual cost (≤ SI) |
| Compulsory Excess | ₹ 5,000 | ₹ 5,000 | ₹ 5,000 |
| Claim Payable | ₹ 80,000 | ₹ 65,000 | ₹ 1,05,000 |
* Illustrative only. Actual settlement depends on hydrogeologist / govt. officer certified failure status, actual drilling cost proved by invoices, and policy schedule excess. Claim cannot exceed actual drilling cost proved, even if declared SI is higher.
Policy Conditions
The following 12 conditions are binding under the the insurer Failed Well Insurance Policy. Condition 1 — "Policy before drilling" — is the most critical. Non-compliance with any condition may result in claim rejection.
Policy Before Drilling — MANDATORY: Policy must be purchased and inception date confirmed BEFORE drilling commences. Insurers verify inception date against the contractor's rig arrival / first day of work. Policy purchased after drilling started = void, no exceptions.
Accurate Cost Declaration: Declared sum insured must represent a bona fide estimate of actual drilling cost to the proposed maximum depth — based on the contractor's quotation. Gross over-declaration is treated as misrepresentation.
Minimum Yield Declaration: The minimum acceptable water yield (litres per hour or gallons per minute) must be declared at inception. A well yielding even 1 LPH above the declared minimum is NOT a failed well under this policy.
Proposed Maximum Depth Declaration: The maximum depth to which drilling is proposed (in feet / metres) must be declared. Cover applies up to this declared depth only. Drilling beyond declared depth is at the insured's own cost and risk.
Hydrogeological Survey (Recommended): A survey from the state groundwater department or recognised hydrogeologist is recommended before drilling. Absence does not void the policy but may attract a premium loading.
Licensed Drilling Contractor: The well must be drilled by a licensed / registered drilling contractor. Amateur drilling or use of an unlicensed contractor may void the claim.
Inspector / Govt. Official Certification: "Failed well" status must be certified by: (a) state groundwater authority / district water conservation officer, OR (b) insurer-appointed hydrogeologist, OR (c) designated govt. revenue / panchayat officer. Self-certification not accepted.
Drilling Records: Maintain all drilling records — daily drilling log (depth per day), rig operator's report, contractor's final completion certificate confirming depth reached and water status. Absence may void the claim.
Insurer's Right to Inspect: The insurer reserves the right to appoint a hydrogeologist / surveyor to inspect the well site at any time during or after drilling to verify depth, yield, and claim validity.
Notification within 7 Days of Drilling Completion: The insured must notify Probitas (022 4302 0000) of drilling completion and failure within 7 days of the drilling contractor completing the bore. Delayed notification may prejudice claim settlement.
Govt. Subsidy Wells (PMKSY / JJM): For subsidised wells, the sum insured should cover only the farmer's share of drilling cost — not the government's subsidised portion. Insure only your personal financial exposure.
Fresh Policy for Each Well: Each well is a separate policy unit. A single policy cannot cover multiple bore wells. A fresh proposal is required for each individual well drilling project.
How to File a Claim
Failed well claims require hydrogeologist / government officer certification and all original drilling bills. Notify Probitas within 7 days of drilling completion. Probitas assists at every stage — call 022 4302 0000.
The "failed well" status cannot be self-certified by the insured or their drilling contractor. Certification must come from: (a) the state groundwater authority / district water conservation officer, (b) an authorised hydrogeologist appointed by the insurer, or (c) a designated government revenue / panchayat officer as per the policy schedule. The insurer may additionally appoint their own hydrogeologist to independently verify depth, yield, and drilling records.
Call Probitas on 022 4302 0000 within 7 days of drilling completion — once the contractor confirms the well has failed to meet the declared minimum yield. Submit the contractor's completion certificate and first notification of loss.
The insurer appoints a hydrogeologist / technical inspector to independently verify: actual depth reached, actual water yield (if any), drilling records and contractor logs, and whether the well meets the "failed" definition per the policy schedule.
Submit: Claim Form, Original Policy, contractor's original bills (rig + casing + labour), drilling completion certificate, daily drilling log / rig operator's report, hydrogeologist / govt. officer certification, land ownership / patta, site photographs, bank details.
Claim = actual drilling cost incurred (per bills) − compulsory excess — subject to declared sum insured maximum. Indemnity principle applies: claim cannot exceed actual cost proved. Payment by NEFT within 30 days of document completeness per IRDAI TAT norms.
Common Questions about Failed Well Insurance
Get Instant Quotes in 3 click*
Fill in your well details — our rural insurance specialist will contact you within one working day. Remember: buy the policy before the drilling contractor arrives on site.
By submitting, you agree to our Privacy Policy and Terms & Conditions. Insurance is subject to terms and conditions of the policy wordings issued by the insurer.