Agricultural Insurance

A Panacea?

Facts Regarding Agricultural Background:

Natural calamities cause heavy losses to farmers. So do pest and animal. Disasters cannot often be prevented from happening. There are two types of Disasters to farmers- Market Related - Non-Market Related

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What is Agriculture or Crop Insurance?

Crop insurance is purchased by the agricultural producers including farmers, ranchers and others to protect themselves against either the loss of their crops or animals due to natural disasters such as drought, excessive rains, animal diseases and floods or the loss of revenue due to declines in the prices of agricultural commodities. In India crop insurance is mainly provided by Agriculture Insurance Company of India Limited.

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Products in India:

National Agricultural Insurance Scheme. Varsha Bima / Rainfall Insurance. Weather Insurance. Bio-fuel Tree / Plant Insurance. Modified National Agricultural Insurance Scheme (MNAIS)

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NATIONAL AGRICULTURAL INSURANCE SCHEME:

- Total 26 states included
Andhra Pardesh (Jowar, Bajra, Groundnut, Castor, Sunflower, Cotton etc) Assam (Jute, Boro Paddy, Wheat, Mustard, Potato, Sugarcane etc) Bihar (Paddy, Maize, Chilly, Wheat, Chana, Masoor, Maize) Goa (Paddy, Ragi, Groundnut, Sugarcane, Pulses)

- Risks covered
Natural Fire and Lightning Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado etc. Flood, Inundation and Landslide Drought, Dry spells Pests/ Diseases etc.

- Providing financial support to the farmers in the event of crop failure.

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VARSHA BIMA / RAINFALL INSURANCE:

Covers anticipated shortfall in crop yield on account of deficit rainfall. Voluntary for all classes of cultivators who stand to lose financially also upon adverse incidence of rainfall. The insurance operates during- June to September for short duration crops. - June to October for medium duration crops - June to November for longer duration crops.

The cultivators proposed for insurance under schemes is required to have a Bank Account.
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WEATHER INSURNACE:

Provides protection against adverse deviations in a range of weather parameters like heat, relative humidity etc. Generic insurance product insuring crops like wheat, potato, barley, mustard, gram etc. The insurance operates during the months of December to April. Allows for speedy settlement of claims (4 6 weeks after insurance).

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BIO-FUEL TREE / PLANT INSURANCE:

Insurance Policy covering as many as six different trees Jatropha Karanja Neem Mahua Polanga Paradise Tree

Provides for drought risk.

optional

cover

against

The Policy period is annual, with a provision to go for policy of 3 or 5 years duration.

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Modified National Agricultural Insurance Scheme:

To provide insurance coverage and financial support to the farmers as a result of pests & diseases. To help stabilize farm incomes, particularly in disaster years. Implemented in 50 districts across India. Minimum indemnity level in case of MNAIS is of 70.

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NAIS vs. MNAIS:

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Thank You

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