All About Indian Crop Insurance

Crop Insurance

Crop insurance is a sort of coverage that safeguards farmers against the danger of losing money on market sales or on crops that do not grow as well as anticipated.

Agriculture employs many people. In India, weather, pests, rain, and humidity damage agricultural products. Thus, crop insurance for output losses is essential. Crop insurance reduces farmer stress and improves welfare. Crop insurance protects farmers from weather-related concerns like floods, droughts, thunder, fires, etc.

Follow the blog for crop insurance information. This blog helps farmers, especially first-time farmers, understand crop insurance. Follow this blog to the conclusion.

What Is Crop Insurance? 

Crop insurance is a type of policy that protects farmers from the risk of losing money on sales at the market or on crops that don’t grow as well as expected.

Crop insurance covers revenue and yield. Crop yield insurance covers crop amount harvested and estimated earnings from unexpected yields. Crop revenue insurance shields predicted revenue from crop selling price changes. Both promote disaster recovery.

You all know that you can’t predict the future. It might be good or it might not. To protect against loss due to natural disasters, such as drought, floods, thunder, hurricanes, fires, earthquakes, pandemics, etc., or loss of income due to a drop in the prices of agricultural commodities. Crop insurance paid for all of these.

Various kinds of crop insurance

India soon had many different kinds of insurance for farmers. Look at what’s below.

  1. Multiple danger crop insurance (MPCI)

Multiple-risk crop insurance protects against excessive moisture, wind, drought, hail, insects, disease, and frost. To validate claims, the farmer needs to buy this policy before planting. MPCI is processed under the federal-private Federal Crop Insurance Program.

15 USDA RMA private insurers are approved by the US Department (Agriculture Risk Management Agency). The Risk Management Agency sets many peril insurance premiums for Federal Crop Insurance Program insurers (RMA).

You choose the average yield to cover. Insure 50% to 75%, or 85% in some places. In the second example, you can predict crop prices between 55% and 100%. RMA sets prices annually.

2. Production-based crop insurance

Insects and plant diseases destroy crops, therefore insurance covers real and predicted losses.

3. Crop revenue coverage

The insurance pays a reasonable price for post-harvest losses if prices decline due to economics or government policy.

Pradhan Mantri Fasal Bima Yojna

Pradhan Mantri Fasal Bima Yojna, Indian crop insurance. Indian government-sponsored crop insurance scheme began in 2016. The company’s goal is to reduce farmers’ crop loss and damage costs.

This method covers risks like preventing sowing or planting seeds, post-harvest losses, and crop damage from non-preventable dangers like drought, flood, landslide, etc. SBI and HDFC Ergo General Insurance sell this coverage.

Also Read:- How to Terminate SIP?

What Does Cover Crop Insurance?

In India, there are many stages of crop loss that are covered by agriculture insurance. These stages are explained in the next section.

  • Localized Disasters: This stage deals with disasters and risks that are localized, like a landslide or a hailstorm. These disasters hurt farms in the areas where people were warned.
  • Risk of Sowing, Planting, and Germination: It covers problems with sowing, planting, and germination caused by heavy rain or bad weather.
  • Loss of Standing Crop: This insurance covers crop yield losses caused by things that can’t be stopped, like dry spells, floods, hailstorms, cyclones, and typhoons.
  • Post-Harvest Loss: This stage covers all losses that happen after harvest for up to two weeks.

Criteria for getting crop insurance

Most farmers, including sharecroppers and farmers who rent their land, can get crop insurance because they grow crops in a “notified area.” Farmers who don’t have loans can also get crop insurance if they have the right legal papers for their land. There are two more categories in which farmers can get benefits. These types of coverage are also called coverage components, so take a look.

Compulsory Component: This part is for farmers who can get seasonal farming operations (SAO) loans from any financial company for the crops that have been notified.

Voluntary Component: This group is made up of farmers who do not have a loan. They can apply for and get help from the government plan if they want to.

How to File a Claim The Business

The claim can be dealt with in two ways:

  • Widespread: In this case, the company can settle claims when the government keeps track of the actual yield.
  • Local disasters: In this case, the insured person must tell the company within 24 hours or they won’t be able to make a claim.

Policy for Crop Insurance

Farmers who live near insurance companies that offer crop insurance can easily sign up for it. To make an insurance claim, the farmers need a few key pieces of paper, which are shown below.

  • Duty claim form
  • Land Registration Papers or Land Patta Number
  • Land Ownership Documents
  • Aadhar card
  • Bank details
  • Personal identification proof such as a pan card or voter card
  • Land ownership paper
  • Sowing Declaration
  • Claim Reimbursement Form or the Application Form

Within 30-45 days before the end of the seasonal crop’s risk period, the claim is settled by the company with the condition that the important documents have been submitted to the company.

Exclusions Conditions

Crop insurance doesn’t cover a lot of things that aren’t covered by exclusions. The company can’t pay for the things listed below.

  • War and nuclear risks cause people to lose things.
  • The company doesn’t care about risks that could have been avoided or mistakes made by farmers.
  • Crops were burned because the government got involved.
  • Birds and animals can cause damage

Crop Insurance Companies

In India, there are many crop insurance companies that do this kind of work. Some of them are run by the government, and some are run by private businesses. Even private companies are very important in the field of insurance. They offer a lot of services in an easy and effective way. The most well-known Indian insurance companies for farmers are

  • Tata AIG General Insurance
  • Reliance General Insurance
  • IFFCO-Tokio General Insurance
  • Bajaj Allianz General Insurance
  • SBI General Insurance

Crop insurance has a lot of pros.

Crop insurance is a very important and helpful thing for farmers. Here are some of the reasons why insurance is good for farmers.

  • Crop insurance helps with money and pays for crop loss or damage.
  • Farmers can relax because they don’t have to worry about getting high-interest loans from lenders.
  • It also makes it less likely that they will use new and modern farming methods, which would help their income.
  • Crop insurance also helped the economy of the country because farmers could easily pay back loans with the money they got from crop insurance.
  • Here is everything you need to know about crop insurance, which will help you when you buy it and when you need to make a claim. We hope you enjoyed reading this blog and that it made you happy. Follow Tractor Junction or stay in touch with it if you want to find out more or ask questions.

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