Crop Insurance Overview

Table of Contents

Agriculture in India is easily one of the country’s major occupations. Approximately 52% of Indians depend on the crops that they yield for their livelihood. Agriculture contributes 16% to the overall GDP of the country.

Unfortunately, agriculture in India can be a risky business for farmers because of the chances of natural disasters (floods, droughts etc.). The fluctuating prices of agricultural products are a source of worry too. For the sake of farmers in the country, the government has launched crop insurance to lighten the heavy risk associated with agriculture.

Why is Crop Insurance required

The effects of such events like drought can be softened with crop insurance which will protect farmers from the harsh results.

Here is why Crop Insurance is a basic requirement that all farmers should adopt

·To help stabilize farm incomes, especially in the years that disaster hits.

·To provide farmers with financial support and insurance coverage in the event of natural calamities, diseases and pests.

What is covered?

Over the years, the list of things that are covered in crop insurance has evolved to benefit farmers. Depending on what policies that the farmer opts for, both the personal and property need of the farmer may be covered. Following is a list of what’s covered

· Loss or damage to the property of the insured farmer

· Damage or loss caused due to fire or natural disaster (including storm, flood, tornado, earthquake, cyclone etc.)

· Coverage for personal accident. This includes the insured farmer and the farmer’s family members).

· Cover for loss of pump set

· Cover for damage/ loss of tractor

· Coverage for damage/ loss caused by power failure

Who provides crop insurance

There are lot of companies who do crop insurance. If you google you will get it.

Crop Insurance Claim process

Framers must register themselves with the insurance provider company to begin with. It is necessary to register the marketing surplus at the sowing of crop in order to get crop insurance. The insurance company will then offer the appropriate coverage scheme. The coverage scheme includes market price from past or minimum support price guarantee.

The premium for any type of price insurance must be paid by the farmers. The government will help in the premium payment in the initial stage.

In case of market price falling

During the harvest period, in case the notified market price drops below guaranteed price, then the farmer will be compensated by the insurance company.