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Importance of insurance for farmers and crop production in India
This article explains the importance of farmers and crop insurance. In India, the agricultural production is dependent on the nature. The Indian farmers have to suffer a huge loss during natural disasters such as flood, drought or earthquake. Therefore, insurance is one of the best ways to protect the farmers from such damages. Read the complete article to know the benefits of farmers and crop insurance and the other details such as various schemes and the coverage details.
Introduction to insurance for farmers
In India, agriculture plays a significant role in Indian economy. After the amazing success of the famous Green Revolution, the importance of agriculture boomed in our country. And today, India is one the leading exporters of grains, crops and the various agricultural products. The farmers play a pivotal role in the success of agricultural industry. But, they are the one who are suffering from the loads of debt and poverty. It is one the unfortunate truth that the one Indian farmers attempts to suicide every day. The reason is the less income and deprivation. The agriculture in India depends on the monsoon. A poor monsoon, less techniques to tackle the adverse situation affects the crop production. Poverty and rise in the cost of agricultural needs creates havoc on the farmers and they are forced to take loans either from banks or moneylenders. But, due to less production of the crops, or some disasters, they undergo the debt. And when they are unable to return back the money, they attempt suicide. But, this is not the solution of the problems.
Understanding the problem of farmers, Government of India came up with several insurance schemes which are meant to protect the farmers from any damage or loss. The insurance plans for farmers and the crops bring stability in their life and agricultural industry.
Other poplar terms for crop/farmers insurance
- Agriculture insurance
- Weather based crop insurance
- Farm Insurance
History of crop insurance in India
In India, crop insurance was introduced in the year 1985 when seventh five year plan was announced. A scheme All-Risk Comprehensive Crop Insurance Scheme (CCIS) was introduced which covered all the major crop production. In the year 1999, this scheme was replaced by National Agricultural Insurance Scheme. In the year 2003, other private players also entered the market. One of them is Royal Sundaram which run many pilot schemes to provide benefits to the farmers.
Importance of insurance for farmers
Commercialization of agricultural products has increased in India. The fluctuation in the price of the products has affected the income of the farmers significantly. Insurance of crop production provides a relief to the farmers when the crop is damaged by attack of pests, flood, drought or any other mean.
How does the insurance scheme for farmers work?
To avail the benefits of the crop insurance scheme, the interested farmers have to register themselves with the insurance provider company. The registration of marketing surplus at the sowing of crop is essential for crop insurance. The insurance company offer the appropriate coverage scheme which includes minimum support price guarantee or market price from past. Farmers are required to pay the premium for any type of price insurance. In the initial stages, government shares the burden of premium payment. During harvest, if the notified market price falls below guaranteed price, then the insurance company pays the compensation.
What the various insurance coverage available to farmers?
The insurance schemes for the farmers have been evolved to provide benefits to the farmers. Some of the policies cater to both the personal and property need of the farmers. The basic requirements of the farmers are covered in the farmer's insurance scheme. Here is a list of the coverage provided to the farmers under such policies.
- Loss or damage caused due to fire or natural disaster such as flood, storm, tornado, cyclone, earthquake etc.
- Loss or damage to the property of the insured farmer
- Coverage for personal accident which includes the insurer and the family members
- Cover for loss or damage of tractor
- Cover for loss of pump set
- Coverage for loss/ damage caused by power failure
Popular insurance schemes available for farmers in India
- Whether based insurance
- Crop insurance
- Power failure insurance
- Farmers insurance
- Rainfall insurance/ Varsha Bima
- Plant insurance
- Mango Insurance
- Poppy Insurance
- Potato Insurance
- Grapes Insurance
- Wheat Insurance
- Coconut Insurance
- Rubber Insurance
- Rabi Weather Insurance
- Pulpwood Tree Insurance
List of Agriculture based insurance companies in India
- Agriculture Insurance Company of India Ltd
Address: Agriculture Insurance Company of India Limited
13th Floor, "AMBA DEEP",
Kasturba Gandhi Marg,
New Delhi - 110 001,
Phone No: 011 - 46869800
E-mail address: email@example.com
- Royal Sundaram Alliance Insurance Company Limited
Sundaram Towers 45 & 46,
Whites Road, Chennai 600 014
Phone No: 91-44-28517387 / 91-44-42227373
Help line number : 1860 425 0000
Crop/farmer insurance is a boon for the Indian farmers. Now, they can take the advantage of the benefits of the various insurance schemes available for farmers in order to handle the agricultural problems.
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