Agriculture Insurance, Crop Insurance in India, Crop

A farmer near Nashik borrows money, sows his onions and then watches an unseasonal storm flatten the field in one night. The bank still wants its instalment. Nobody in his village can cover such a loss, and a private insurer will hesitate because every farm in the district suffers the same weather on the same day. So how does the law and the market protect a farmer against crops, cattle and climate? That is the subject of agriculture insurance.

In two minutes

Agriculture insurance is indemnity cover against losses to crops and livestock from natural and other insured perils; it is hard to underwrite because farm losses are correlated, which is why India relies on subsidised, State-supported schemes alongside insurers’ statutory rural and crop obligations.

The rest of this chapter

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