Agriculture in India is fraught with risks like crop disease, pest attack, reduction in output, droughts and floods. Crop insurance will go a long way in mitigating the risk. However, several schemes have been launched and discontinued due to extreme risk factors and huge loss to insurance companies. However, the Government introduced “National Agricultural Insurance Scheme” (NAIS) in 1999-2000 by Agriculture Insurance Corporation of India.
It covers all food crops (cereals and pulses), oilseeds, horticultural and commercial crops. It covers all farmers, both loanees and non-loanees, under the scheme. The premium rates vary from 1.5 percent to 3.5 percent of sum assured for food crops. In the case of horticultural and commercial crops, actuarial rates are charged. There is a 50% subsidy provided by the government to farmers.
Government takes measures to minimize risk in crop insurance cover
West Bengal government launches Bangla Fasal Bima Yojna
Skyline Partners to launch weather insurance in India
HDFC ERGO authorized for Weather Based Crop Insurance in Andhra Pradesh
List of Crop Insurance Companies in India
Agriculture Insurance Co Of India Ltd