What is crop insurance in India?

What is crop insurance in India?

Crop Insurance is a comprehensive yield-based policy meant to compensate farmers’ losses arising due to production problems. It covers pre-sowing and post-harvest losses due to cyclonic rains and rainfall deficit.

How many crop insurance schemes are there in India?

four crop Insurance schemes
AGRICULTURE INSURANCE: At present four crop Insurance schemes namely National Agricultural Insurance Scheme (NAIS), Pilot Modified National Agricultural Insurance Scheme (MNAIS), Pilot Weather Based Crop Insurance Scheme (WBCIS) and Pilot Coconut Palm Insurance Scheme (CPIS) is being implemented in the country.

What is called crop insurance?

Crop insurance is a type of protection policy that covers agricultural producers against unexpected loss of projected crop yields or profits from produce sales at market. Crop insurance is divided into two categories: crop-yield and crop-revenue.

What are the different types of crop insurance?

There are two major types of crop insurance: multiple peril crop insurance (MPCI) and crop-hail insurance.

What is the importance of crop insurance?

Crop insurance makes up the loss or damage to growing crops resulting from a spread of causes like hail or drought frost, flood and disease. The cultivators pay a premium and protection is given to them on an equivalent basis as in other insurance.

What is the objective of crop insurance?

To provide insurance protection to agricultural producers particularly the subsistence farmers from crop losses arising from natural calamities and pest and diseases, and non-crop agricultural assets losses due to perils that assets have been insured against.

Who regulates crop insurance in India?

Ltd. AIC is under the administrative control of Ministry of Finance, Government of India, and under the operational supervision of Ministry of Agriculture, Government of India. Insurance Regulatory and Development Authority (IRDA), Hyderabad, India, is the regulatory body governing AIC.

When was crop insurance introduced India?

1985
To provide financial support to the farmers in the event of failure of crops as a result of natural calamities, a Comprehensive Crop Insurance Scheme (CCIS) was introduced in the country with effect from Kharif, 1985.

What is the purpose of crop insurance?

The Crop Insurance company or approved insurance provider (AIP) agrees to indemnify (that is, to protect) the insured (farmer, rancher or grower) against losses which occur during the crop year. Losses must be due to things which are unavoidable or beyond the insured’s control such as drought, freeze and disease.

How is crop insurance calculated?

For each insurance period the guarantee is calculated by multiplying the per acre guarantee by the insured acres. The guarantee is then multiplied by the indemnity price (xx percent of the FCIC maximum price) and then by the insured’s share in the insured acres to get the liability.

What are the salient features of crop insurance?

– entire liability of claims is on the implementing insurance companies; – it is compulsory for loanee farmers and optional for non-loanee farmers; – add on coverage in respect of hailstorm and cloud burst on individual assessment basis.

What are the types of agricultural insurance?

Generally speaking, there are three broad classes of agricultural insurance: Animal agricultural insurance, Crop agricultural insurance and Farm property and equipment agricultural insurance.

What is crop insurance guarantee?

The guarantee is a percentage of the yield calculated from historic yields (individual or area). Indemnities result from a shortfall of the guaranteed yield in the crop year insured. This yield shortfall is multiplied by an indemnity price selected by the insured before the insurance period begins.

What is crop insurance premium?

Pradhan Mantri Fasal Bima Yojana The highlights of this scheme are as under: There will be a uniform premium of only 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops. In case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%.

What are the two types of crop insurance?

What is rate yield in crop insurance?

Rate yield usually is the average of all actual yields. In the example, the rate yield is 144 bushels per acre. Adjusted yield (or APH without YE and TA) includes the effects of YA substitutions. Approved yield (or APH with YE and TA).