283916453 Rural Insurance

8/18/2019 283916453 Rural Insurance

1/441

A PROJECT REPORT ON

RURAL INSURANCE

Under The Partial Fulfilment Of

T.Y.BCOM BAN!IN" #INSURANCE $

SEMESTER %T&

Su'mitted B(

Mr.)INAY "OPIC&AN* RANE

R+ll N+,-%/

Pr+0e1t "uide

PROF. Mr2.$ MANSI "O!&ALE

SUBMITTE* TO

UNI)ERSITY OF MUMBAI

A1ademi1 Year

3456-345%

A)PS

A*ARS& COLLE"E OF ARTS # COMMERCE

!UL"AON-BA*LAPUR E$


2/442

*ECLARATION

I, Vinay Gopichand Rane the student of ADARSH COLLEGE,

studying in the T..!.Co" # $!an%ing & Insu'ance(, Se"este')

*TH cou'se fo' the acade"ic yea' +- # -*. He'e/y dec0a'e that I

ha1e co"p0eted the p'o2ect on 3Ru'a0 I4S5RA4CE6 in fu0fi0"ent

of the cou'se co"p0etion 'e7ui'e"ent at the 5ni1e'sity of 8u"/ai.

I fu'the' dec0a'e that info'"ation p'esented in this p'o2ect is t'ueand o'igina0 to the /est of "y %no90edge.

Si7nature +f Student

)ina( Rane


3/443

PREFACE

I 9anted to p'esent a 'epo't on 8RURAL INSURACE9 to p'o1ide

the 'eade's 9ith usefu0 info'"ation 'ega'ding this p'o2ect.

The'efo'e, I "ade since'e atte"pts to co"p0ete info'"ation on thesu/2ect to p'esent in a si"p0e sty0e. I a" su'e that the info'"ation

in this 1o0u"e 9ou0d ce'tainty p'o1e usefu0 fo' e1e'y 'eade' to

ha1e a fa' /ette' insight in the scope and di"ension of this p'o2ect

and its t'ue pe'specti1e The tas% of co"p0etion of this p'o2ect

thought /eing difficu0t 9as "ade 7uite and si"p0e, inte'esting and

successfu0 due to deep in1o01e"ent and co"p0ete dedication of "y

p'o2ectguide.

AC!NO:LE*"EMENT


4/444

I 9ou0d 0i%e to e:tend "y since'e g'atitude to a00 those peop0e 9hoha1e he0ped "e in the successfu0 co"p0etion of "y ;'o2ect. Itsgi1es us i""ense p0easu'e in e:p'essing ou' g'atitude to us

p'o2ect guide p'of. 8'."ansi go%ha0e fo' gi1ing he' p'ecious ti"eand he0p us in co"p0eting ou' p'o2ect.


5/445

E)ALUATION CERTIFICATE

This is to ce'tify that the unde'signed ha1e assessed and e1a0uated

the p'o2ect on 3R5RAL I4S5RA4CE6 su/"itted /y RA4E

VI4A GO;ICHA4D student of T!!I se")VI. This p'o2ect is

o'igina0 to the /est of ou' %no90edge and has /een accepted fo'

Inte'na0 Assess"ent.

Co)o'dinato' ;'incipa0

$;'of.8ansi Go%ha0e( $D'.Vaidehi Dapta'da'(

;'o2ect Guide=Inte'na0 E:a"ine' E:te'na0 E:a"ine'

$;'of.8ansi Go%a0e(


6/446

IN*E;

Sr.n+ Pa7e n+

5. Intr+du1ti+n <

3. A'+ut the t+=i1 55

. A'+ut rural in2uran1e 5>

>. *ata anal(2i2 3

6. C+n1lu2i+n >3

%. Bi'li+7ra=h( >>

C&APTER N+ ? 5

INTRO*UCTION


7/447

5.5 E;ECUTI)E SUMMERY

Ru'a0 p'oduction and fa'" inco"es in India a'e f'e7uent0y affected /y

natu'a0 disaste's such as d'oughts, f0oods, cyc0ones, sto'"s, 0ands0ides and

ea'th7ua%es. Suscepti/i0ity of 'u'a0 to these disaste's is co"pounded /y the

out/'ea% of epide"ics and "an)"ade disaste's such as fi'e, sa0e of spu'ious

seeds, fe'ti0i>e's and pesticides, p'ice c'ashes etc. A00 these e1ents se1e'e0y

affect fa'"e's th'ough 0oss in p'oduction and fa'" inco"e, and they a'e

/eyond the cont'o0 of the fa'"e's. ation of

'u'a0, the "agnitude of 0oss due to unfa1o'a/0e e1entua0ities is inc'easing.

The 7uestion is ho9 to p'otect fa'"e's /y "ini"i>ing such 0osses. ?o' a

section of fa'"ing co""unity, the "ini"u" suppo't p'ices fo' ce'tain c'ops

p'o1ide a "easu'e of inco"e sta/i0ity. !ut "ost of the c'ops and in "ost of

the state@s 8S; is not i"p0e"ented. In 'ecent ti"es, "echanis"s 0i%e

cont'act fa'"ing and futu'es t'ading ha1e /een esta/0ished 9hich a'e

e:pected to p'o1ide so"e insu'ance against p'ice f0uctuations di'ect0y o'

indi'ect0y.

!ut, Ru'a0 insu'ance is conside'ed an i"po'tant "echanis" to effecti1e0y

add'ess the 'is% to output and inco"e 'esu0ting f'o" 1a'ious natu'a0 and

"an"ade e1ents. Ru'a0 Insu'ance is a "eans of p'otecting the ag'icu0tu'ist

against financia0 0osses due to unce'tainties that "ay a'ise Ru'a0 0osses

a'ising f'o" na"ed o' a00 unfo'eseen pe'i0s /eyond thei'

cont'o0 $AIC, +(. 5nfo'tunate0y, 'u'a0 insu'ance in the count'y has not

"ade "uch head9ay e1en though the need to p'otect Indian fa'"e's f'o"


8/448

'u'a0 1a'ia/i0ity has /een a continuing conce'n of 'u'a0 po0icy. Acco'ding to

the 4ationa0 Ru'a0 ;o0icy +, 3Despite techno0ogica0 and econo"ic

ad1ance"ents, the condition of fa'"e's continues to /e unsta/0e due to

natu'a0 ca0a"ities and p'ice f0uctuations6. In so"e e:t'e"e cases, these

unfa1ou'a/0e e1ents /eco"e one of the facto's 0eading to fa'"e's‟ suicides

9hich a'e no9 assu"ing se'ious p'opo'tions $Ra2u and Chand, +B(. Ru'a0

insu'ance is one "ethod /y 9hich fa'"e's can sta/i0i>e fa'" inco"e and

in1est"ent and gua'd against disast'ous effect of 0osses due to natu'a0

ha>a'ds o' 0o9 "a'%et p'ices. C'op insu'ance not on0y sta/i0i>es the fa'"

inco"e /ut a0so he0ps the fa'"e's to initiate p'oduction acti1ity afte' a /ad

'u'a0 yea'. It cushions the shoc% of c'op 0osses /y p'o1iding fa'"e's 9ith a

"ini"u" a"ount of p'otection. It sp'eads the c'op 0osses o1e' space and

ti"e and he0ps fa'"e's "a%e "o'e in1est"ents in 'u'a0. It fo'"s an

i"po'tant co"ponent of safety)net p'og'a""es as is /eing e:pe'ienced in

"any de1e0oped count'ies 0i%e 5SA and Canada as 9e00 as in the Eu'opean

5nion. Ho9e1e', one need to %eep in "ind that c'op insu'ance shou0d /e

pa't of o1e'a00 'is% "anage"ent st'ategy. Insu'ance co"es to9a'ds the end

of 'is% "anage"ent p'ocess. Insu'ance is 'edist'i/ution of cost of 0osses of

fe9 a"ong "any, and cannot p'e1ent econo"ic 0oss.

-.+ OBJECTI)ES OF T&E STU*Y


9/449

To esti"ate p'ice @ yie0d 'is% in1o01ed in diffe'ent c'ops at nationa0

0e1e0 and at disagg'egate 0e1e0

To e:a"ine the pe'fo'"ance of the e:isting and ea'0ie' nationa0

Ru'a0 insu'ance sche"es i"p0e"ented in India

To discuss and e:p0o'e the p'o/0e"s and p'ospects of 'u'a0

insu'ance in the count'y

To 0oo% into the 'o0e of go1e'n"ent in i"p0e"enting 1a'ious Ru'a0

insu'ance sche"es

To suggest effecti1e 'u'a0 insu'ance p'og'a""e in India

The 'epo't is o'gani>ed as fo00o9s. Lite'atu'e on 'u'a0 insu'ance is

'e1ie9ed in Chapte' + and sou'ces of data and "ethod used in the study a'e

desc'i/ed in Chapte' . Ris% in1o01ed in 'u'a0 p'oduction is discussed in

Chapte' . ?ifth chapte' p'esents p'og'ess and pe'fo'"ance of 1a'ious 'u'a0

insu'ance sche"es 0aunched f'o" ti"e to ti"e. It a0so inc0udes discussion on

p'i1ate secto' pa'ticipation in 'u'a0 insu'ance. Si:th Chapte' discusses

1a'ious issues 'e0ated to Ru'a0 insu'ance in India and a0so suggests changes

in 9o'%ing of 1a'ious sche"es to "a%e the" "o'e effecti1e and to inc'ease

thei' scope and co1e'age. G'ound 0e1e0 e:pe'ience of 'u'a0 insu'ance /ased

on "ic'o 0e1e0 in1estigations in Andh'a ;'adesh is p'esented in Chapte' B.

G0o/a0 pictu'e of 'u'a0 insu'ance is discussed in Chapte' . Conc0usions and

po0icy suggestions a'e p'esented in the 0ast Chapte'.

O'li7ati+n ?Rural Se1t+r


10/4410

E1e'y insu'e', 9ho /egins to ca''y on insu'ance /usiness afte' the

co""ence"ent of the Insu'ance Regu0ato'y and De1e0op"ent

Autho'ity Act, -FFF $- of -FFF(, sha00, fo' the pu'poses of sections

+! and +C of the Act, ensu'e that he unde'ta%es the fo00o9ing

o/0igations, du'ing the fi'st fi1e financia0 yea's, pe'taining to the

pe'sons in 'u'a0 secto',

$i( in 'espect of a life insurer , ))

seven pe' cent in the fi'st financia0 yea'

nine pe' cent in the second financia0 yea'

Twelve pe' cent in the thi'd financia0 yea'

Fourteen pe' cent in the fou'th financia0 yea'

Sixteen pe' cent in the fifth yea' of tota0 po0icies 9'itten di'ect in

that yea'

$ii( in 'espect of a general insurer ,))

# t9o pe' cent in the fi'st financia0 yea'

# th'ee pe' cent in the second financia0 yea'

# fi1e pe' cent the'eafte',

of tota0 g'oss p'e"iu" inco"e 9'itten di'ect in that yea'.

C&APTER ? 3


11/4411

ABOUT T&E TOPIC

*EFINITION

“Rural sector shall mean any place as per the latest census which

meets the following criteria--

• a population of less than five thousand;

• a density of popu0ation of 0ess than fou' hund'ed pe' s7ua'e %i0o"ete'

and

• "o'e than twenty five pe' cent of the "a0e 9o'%ing popu0ation is

engaged in Ru'a0 pu'suits

Ru'a0 Insu'ance is an unde'9'iting co"pany dedicated to p'o1iding

insu'ance so0utions to "eet the needs of Ru'a0 and 'u'a00y /ased

/usinesses.

The co'e /usiness p'incip0es that guide Ru'a0 Insu'ance a'e e:c0usi1ity,

access to info'"ed and e"po9e'ed decision "a%e's, se'1ice and

7ua0ity. Ru'a0 Insu'ance /e0ie1es that /y co"/ining these co'e 1a0ues

and adhe'ing to the /usiness ethos of ;utting ou ?i'st@, 9e c'eate a

funda"enta00y /ette' option fo' you' /usiness.


12/4412

RURAL INSURANCE BENEFITS A*)ANTA"ES

FEATURES # ELI"IBILITY

India is p'edo"inant0y an Ru'a0 count'y so it /eco"es i"po'tant to insu'e its

Ru'a0 he'itage. ?a'"e's a'e the cu0ti1ato's of hea0thy India. Ru'a0 Insu'anceis the ans9e' to a00 the needs of Ru'a0 and 'u'a00y /ased !usinesses.

4one of us can /e su'e 9hat to"o''o9 9i00 /'ing. Shie0d you' fa"i0ies

against the un%no9n. 8etLife@s 'u'a0 p0ans p'otect you' 0o1ed ones against

financia0 0ia/i0ities and he0p you sa1e fo' to"o''o9. A00 at affo'da/0e

p'e"iu"s.

8et Su1idha $Ru'a0( is a pa'ticipating f0e:i/0e Endo9"ent ;0an that

co"/ines sa1ings and secu'ity. In addition to p'o1iding you p'otection up to

"atu'ity, it he0ps you sa1e fo' you' specific 0ong te'" financia0 o/2ecti1es.

This 0ong te'" sa1ings)cu")p'otection p0an co"es to you at affo'da/0e

p'e"iu"s.

BENEFITS,-

http://www.bimadeals.com/life-insurance-india/life-insurance.php#endowmenthttp://www.bimadeals.com/life-insurance-india/life-insurance.php#endowment


13/4413

*eath Benefit

In the e1ent of death du'ing the te'" of the po0icy, the /eneficia'y 9i00

'ecei1e the /ase Su" Assu'ed, the acc'ued 'e1e'siona'y /onus and te'"ina0

/onus if any.

Maturit( Benefit

On "atu'ity of the po0icy, you 9i00 'ecei1e the /ase Su" Assu'ed, the

acc'ued 'e1e'siona'y /onus and te'"ina0 /onus if any.

B+nu2e2

!onuses a'e a1ai0a/0e on0y on pa'ticipating po0icies. The /onuses a'e not

gua'anteed as they a'e /ased on the Co"pany@s actua0 in1est"ent 'etu'ns,

pe'sistency and e:pense e:pe'ience. 4o /onus is paya/0e fo' the fi'st + yea's

of the po0icy.

A*)ANTA"ES ,-

It is an Endo9"ent p0an that offe's /oth sa1ings and 0ife insu'ance.

?0e:i/0e p'e"iu" paying options to suit 1a'ious inco"e cyc0es.

A p0an 9hich pa'ticipates in the /onuses dec0a'ed /y the co"pany.

Custo"i>ation possi/0e 9ith Accident Death !enefit, C'itica0 I00ness,

Te'",


14/4414

C&APTER -

ABOUT T&E RURAL INSURANCE

RURAL INSURANCE SC&EMES ,-

CATTLE INSURANCE

Catt0e Insu'ance 9as go1e'ned unde' 8a'%et Ag'ee"ent as de1ised /y GIC

and the 'ates, te'"s, conditions etc. a00 9e'e app0ica/0e to a00 the fou'

Insu'ance Co"panies. Ho9e1e', 9.e.f 8ay +, it is no 0onge' unde'

8a'%et Ag'ee"ent.

This po0icy co1e's indigenous c'oss /'ed and e:otic catt0e o9ned /y p'i1ate

o9ne's, 1a'ious financia0 institutions, dai'y fa'"s, coope'ati1es, co'po'ate

dai'ies etc. The 9o'd catt0e inc0udes 8i0ch, Co9s and !uffa0oes ca01es and

heife's, stud /u00s, /u00oc%s and he)/uffa0oes and "ithuns. Age g'oup is

specified fo' a00 the ani"a0s.


15/4415

S&EEP AN* "OAT INSURANCE

This sche"e is a0so go1e'ned unde' 8a'%et Ag'ee"ent. ;o0icy p'o1ides

inde"nity to indigenous c'oss)/'ed and e:otic sheep and goat against death

due to accident $inc0uding fi'e, 0ightening, f0ood, cyc0one, fa"ine, st'i%e, 'iot

and ci1i0 co""otion( and disease. Ea'th7ua%e and 0ands0ide co1e's a'e a0so

p'o1ided. Standa'd and co""on e:c0usions app0y as pe' Catt0e ;o0icy.

Ani"a0s a'e identified /y "eans of s"a00 /'ass /uttons ea' tags. Ani"a0s

unde' sche"e catego'y en2oy ce'tain /enefits in p'e"iu" 'ate and c0ai".

CAMEL INSURANCE

The ca"e0s a'e co1e'ed against death due to accident o' disease as pe'

Standa'd Catt0e Insu'ance ;o0icy. The "a:i"u" S.I. is 'est'icted to

Rs.=).


16/4416

PI" INSURANCE

A00 indigenous, c'oss)/'ed and e:otic pigs a'e co1e'ed ho9e1e' unde'

sche"e catego'y e:otic ani"a0s a'e not co1e'ed. The age g'oup is f'o"

"onths to yea's. The co1e'age is against death due to accident o' disease.

E:c0usions as pe' Catt0e ;o0icy app0y he'e a0so. ;e'"anent tota0

disa/0e"ent, /'eeding and fu''o9ing 'is%s a'e not co1e'ed.

Vaccination in app0ica/0e diseases is co"pu0so'y. E1a0uation depends upon

the age of the ani"a0. Ani"a0s a'e identified /y "eans of s"a00 /'ass /uttons

ea' tags.

&ORSE *ON!EY YA! INSURANCE,-

The Co1e'age is as pe' Standa'd Catt0e ;o0icy. Ho9e1e' the age g'oup is

'est'icted to + yea's to yea's.


17/4417

POULTRY INSURANCE

This is a0so go1e'ned /y 8a'%et Ag'ee"ent, a"ongst a00 the fou' su/sidia'y

co"panies.The po0icy sha00 p'o1ide inde"nity against death of /i'ds due to

accident $inc0uding fi'e, 0ightning, f0ood, cyc0one, st'i%e, 'iot and ci1i0

co""otion and te''o'is"( o' diseases cont'acted o' occu''ing du'ing the pe'iod of insu'ance. The 9o'd ;ou0t'y inc0udes 0aye's, /'oi0e's and hatche'y

/i'ds, 9hich a'e e:otic and c'oss)/'ed. Indigenous and non)desc'ipt /i'ds

9i00 not /e insu'ed.

*UC! INSURANCE APPLICABILITY

i. A00 types of 8ig'ato'y and 4on)"ig'ato'y /i'ds in India.

ii. Duc% fa'"s consisting of "ini"u" of - duc%s fo' non)

IRD; and duc%s fo' IRD; and othe' Go1e'n"ent


18/4418

su/sidi>ed sche"es.

N+te A00 /i'ds in Duc%e'y ?a'" shou0d /e insu'ed Duc% Insu'ance Sche"e

sha00 p'o1ide inde"nity against death of duc%s due to accident inc0uding

0ightning, f0ood, cyc0one, fa"ine, 'iot and st'i%e, ci1i0 co""otion o'

diseases cont'acted o' occu''ing du'ing the pe'iod of insu'ance.

ELEP&ANT INSURANCE

This sche"e is app0ica/0e to e0ephants used fo' co""e'cia0 and 'e0igious

pu'poses. This po0icy co1e's death due to disease o' accident and the

co1e'age is gi1en f'o" to * yea's of age. Identification is done f'o" the

'eco'ds of fo'est depa't"ent of the State Go1t. and a0so /y "easu'ing thet'un% of each e0ephant. Va0uation of the e0ephant 1a'ies f'o" /'eed to /'eed,

a'ea to a'ea and ti"e to ti"e.

E:c0usions a'e as pe' Catt0e 8a'%et ag'ee"ent and so"e specific e:c0usion

a'e as pe' po0icy schedu0e. Co"pany inde"nifies the insu'ed on0y J of

"a'%et 1a0ue o' su" insu'ed 9hiche1e' is 0ess.


19/4419

FAILE* :ELL INSURANCE

The sche"e is app0ica/0e on0y to those 9e00s financed /y /an%s 9he'e 'e)

financing /y 4A!ARD is in1o01ed and in othe' case 9he'e 9e00s a'e

financed /y a nationa0i>ed /an% /ut not 'e)financed /y 4A!ARD, app'o1a0

of Head Office is "ust .Su" Insu'ed, p'e"iu", pe'i0s co1e'ed and

e:c0usions a'e diffe'ent in /oth the sche"es and as pe' po0icy schedu0e.

&ONEYBEE INSURANCE SC&EME

This po0icy is to co1e' /eehi1es and=o' co0onies /e0onging to indi1idua0,

coope'ati1e societies and those sponso'ed and su/sidi>ed unde' 1a'ious

p'o2ects of 'especti1e State and Cent'a0 Go1e'n"ent against tota0 0ossda"age to /eehi1es and=o' /ee co0onies as a 'esu0t of an accident caused /y

fi'e, f0ood, inundation, sto'", te"pest, cyc0one, hu''icane and to'nado. This

co1e' is on0y fo' Indian Honey/ee and Ita0ian Honey/ee.


20/4420

CROP INSURANCE

C'op insu'ance is pu'chased /y Ru'a0 p'oduce's, inc0uding fa'"e's,

'anche's, and othe's to p'otect the"se01es against eithe' the 0oss of thei'

c'ops due to natu'a0 disaste's, such as hai0, d'ought, and f0oods, o' the 0oss of

'e1enue due to dec0ines in the p'ices of Ru'a0 co""odities. The t9o gene'a0

catego'ies of c'op insu'ance a'e ca00ed c'op)yie0d insu'ance and c'op)

'e1enue insu'ance.

• C'op)hai0 insu'ance is gene'a00y a1ai0a/0e f'o" p'i1ate insu'e's $in

count'ies 9ith p'i1ate secto's( /ecause hai0 is a na''o9 pe'i0 thatoccu's in a 0i"ited p0ace and its accu"u0ated 0osses tend not to

o1e'9he0" the capita0 'ese'1es of p'i1ate insu'e's. The ea'0iest c'op)

hai0 p'og'a"s 9e'e /egun /y fa'"e's coope'ati1es in ?'ance and

Ge'"any in the -+s.

• 8u0ti)pe'i0 c'op insu'ance $8;CI( co1e's the /'oad pe'i0s of d'ought,

f0ood, insects, disease, etc., 9hich "ay affect "any insu'eds at the

sa"e ti"e and p'esent the insu'e' 9ith e:cessi1e 0osses. To "a%e this

c0ass of insu'ance, the pe'i0s a'e often /und0ed togethe' in a sing0e

po0icy, ca00ed a "u0ti)pe'i0 c'op insu'ance $8;CI( po0icy. 8;CI

co1e'age is usua00y offe'ed /y a go1e'n"ent insu'e' and p'e"iu"s a'e

http://en.wikipedia.org/wiki/Farmerhttp://en.wikipedia.org/wiki/Natural_disasterhttp://en.wikipedia.org/wiki/Hailhttp://en.wikipedia.org/wiki/Droughthttp://en.wikipedia.org/wiki/Floodhttp://en.wikipedia.org/wiki/Multi-peril_crop_insurancehttp://en.wikipedia.org/wiki/Farmerhttp://en.wikipedia.org/wiki/Natural_disasterhttp://en.wikipedia.org/wiki/Hailhttp://en.wikipedia.org/wiki/Droughthttp://en.wikipedia.org/wiki/Floodhttp://en.wikipedia.org/wiki/Multi-peril_crop_insurance


21/4421

usua00y pa'tia00y su/sidi>ed /y the go1e'n"ent. The ea'0iest 8;CI

p'og'a" 9as fi'st i"p0e"ented /y the ?ede'a0 C'op Insu'ance

Co'po'ation $?CIC(, an agency of the 5.S. Depa't"ent of Ru'a0, in

-F. The ?CIC p'og'a" has /een "anaged /y the Ris% 8anage"ent.

• Agency $R8A(, a0so a 5.S. Depa't"ent of Ru'a0 agency, since

-FF*.C'op)'e1enue insu'ance is a co"/ination of c'op)yie0d

insu'ance and p'ice insu'ance. ?o' e:a"p0e, R8A esta/0ishes c'op)

'e1enue insu'ance gua'antees on co'n /y "u0tip0ying each fa'"e'Ks

co'n)yie0d gua'antee, 9hich is /ased on the fa'"e'Ks o9n p'oduction

histo'y, ti"es the ha'1est)ti"e futu'es p'ice disco1e'ed at a

co""odity e:change /efo'e the po0icy is so0d and the c'op p0anted.

The'e is a sing0e gua'antee fo' a ce'tain nu"/e' of do00a's. The po0icy

pays an inde"nity if the co"/ination of the actua0 yie0d and the cash

sett0e"ent p'ice in the futu'es "a'%et is 0ess than the gua'antee. In the

5nited States, the p'og'a" is ca00ed C'op Re1enue Co1e'age.

•C'op)'e1enue insu'ance co1e's the dec0ine in p'ice that occu's du'ing

the c'opKs g'o9ing season. It does not co1e' dec0ines that "ay occu'

f'o" one g'o9ing season to anothe'. That 9ou0d /e ca00ed p'ice

suppo't, and 9ou0d 'aise a se'ies of co"p0e: Ru'a0)po0icy and

inte'nationa0)t'ade issues.

http://en.wikipedia.org/wiki/Agricultural_policyhttp://en.wikipedia.org/wiki/Crop_Revenue_Coveragehttp://en.wikipedia.org/wiki/Agricultural_policyhttp://en.wikipedia.org/wiki/Crop_Revenue_Coverage


22/4422

C&APTER NO - >

*ATA ANALYSIS

Minimum Entr( A7e 56 (ear2 ? %4 (ear2

Minimum Sum A22ured Rs. ,Maimum Sum

A22ured

Rs. B,

Term - yea's # yea's

Premium Pa(in7 Term2 Sing0e ;ay, Li"ited ;ay $

o' -( & Regu0a' ;ayMinimum Annual

Premium Am+unt

Rs. -B


23/4423

RI*ERS,-

8etLife 9ants thei' custo"e's to get the "a:i"u" out of thei' 0i1es.

!e it in te'"s of "a%ing thei' d'ea"s co"e t'ue o' getting the /est out of

thei' insu'ance p0an. e you' 0ife insu'ance p0an. So that it can /e tai0o'ed to "eet

the uni7ue needs of you and you' fa"i0y "e"/e's. 8et 8o'e offe's you a

choice of 'ide's 9hich a'e optiona0 cont'acts that a00o9 you to en2oy

additiona0 /enefits. They a'e a09ays attached to the /asic po0icy at the ti"e

of pu'chasing it, and cannot /e /ought sepa'ate0y o' independent0y. Each

'ide' co"es 9ith its o9n p'e"iu" 'ates and sepa'ate po0icy conditions. The

p'e"iu", natu'e and cha'acte'istics of the 'ide' a'e /ased on the /ase po0icy

to 9hich the 'ide' is attached. So go on, get "o'e out of 0ife.

A11idental *eath Benefit # Death caused due to an accident is one of

the "ost une:pected and painfu0 of a00 causes of deaths. Due to the high

unp'edicta/i0ity of this fo'" of "ishap, the /enefits offe'ed /y the

Accidenta0 Death !enefit Ride' /eco"e a00 the "o'e i"po'tant and

'e0ie1ing.

This Ride' p'o1ides fo' the pay"ent of an additiona0 a"ount shou0d death

occu' as a 'esu0t of an accident /y out9a'd 1io0ent and 1isi/0e "eans /efo'e

age * yea's.

Death of the Life Insu'ed "ust occu' 9ithin - days f'o" the date of the

accident.

http://www.bimadeals.com/life-insurance-india/met-life-insurance.phphttp://www.bimadeals.com/http://www.bimadeals.com/life-insurance-india/life-insurance.phphttp://www.bimadeals.com/life-insurance-india/met-life-insurance.phphttp://www.bimadeals.com/http://www.bimadeals.com/life-insurance-india/life-insurance.php


24/4424

8ini"u" Ent'y - yea's8a:i"u" Ent'y yea's8a:i"u" age at "atu'ity * yea's

8ini"u" Su" Assu'ed Rs. ,8a:i"u" Su" Assu'ed Rs. -, , o' /ase Su"

Assu'ed 9hiche1e' is 0o9e'.

Deat!enefit)

In the unfo'tunate e1ent of death due to an accident the Ride' Su" Assu'ed

is paid and the po0icy is te'"inated.

Criti1al Ill ne22 Rider # 4o one 0i%es to thin% a/out the possi/i0ity of

suffe'ing a c'itica0 i00ness 0i%e cance', hea't attac% and st'o%e etc. It is

so"ething that "any of us assu"e 9i00 not happen to us. In the dai0y g'ind

of acti1ities, one ends up ne1e' /eing p'epa'ed fo' such an e1entua0ity.

8et0ife offe's a C'itica0 I00ness Ride'@ 9hich p'o1ides pay"ent of an

additiona0 a"ount on the diagnosis of as "any as - c'itica0 conditions. ou

can ha1e the "oney to pay fo' the i00ness 9hen you need it.

Inter=retati+n +f Rural In2uran1e

http://www.bimadeals.com/health-insurance-india/health-insurance-critical-care.phphttp://www.bimadeals.com/health-insurance-india/health-insurance-critical-care.php


25/4425

In the a/sence of fo'"a0 'is% sha'ing = diffusion "echanis"s, fa'"e's

'e0y on t'aditiona0 "odes and "ethods to dea0 9ith p'oduction 'is% in 'u'a0.

8any c'opping st'ategies and fa'"ing p'actices ha1e /een adopted in the

a/sence of c'op insu'ance fo' sta/i0i>ing c'op 'e1enue. A1ai0a/i0ity and

effecti1eness of these 'is% "anage"ent st'ategies o' insu'ance su''ogates

depend on pu/0ic po0icies and de"and fo' c'op insu'ance $ed

info'"ation a/out the insu'e'.


26/4426

Ho9e1e', this does not ho0d t'ue in the case of 'u'a0 o' c'op insu'ance.

5n0i%e "ost othe' insu'ance situations, the incidence of c'op 'is% is not

independent0y o' 'ando"0y dist'i/uted a"ong the insu'ed. Good o' /ad

9eathe' "ay affect the enti'e popu0ation in the a'ea.

Lac% of data on yie0d 0e1e0s as 9e00 as 'is% position of the indi1idua0 fa'"e'

puts the insu'ance co"pany in tight spot. As in the case of gene'a0 insu'ance,

Ru'a0 insu'ance "a'%et a0so faces the p'o/0e" of ad1e'se se0ection and

"o'a0 ha>a'd. The highe' p'e"iu" 'ates discou'age "a2o'ity pa'ticipation

and on0y high 'is% c0ients pa'ticipate 0eading to ad1e'se se0ection. 8o'eo1e',

in c'op insu'ance the indi1idua0s do not ha1e cont'o0 o1e' the e1ent, /ut

depending on te'"s of cont'act, the indi1idua0s can affect the a"ount of

inde"nity. Tendency of "o'a0 ha>a'd te"pts an insu'ed indi1idua0 to ta%e

0ess ca'e in p'e1enting the 0oss than an uninsu'ed counte'pa't 9hen e:pected

inde"nity pay"ents e:ceed the 1a0ue of effo'ts. The i"pe'fect info'"ation

$gathe'ing info'"ation is cost0y( discou'ages pa'ticipation of p'i1ate

agencies in c'op insu'ance "a'%et. Si"i0a'0y, incidence of 'ando" e1ents

"ay not /e independent. 4atu'a0 disaste's "ay se1e'e0y da"age c'ops o1e' a

1e'y 0a'ge a'ea and the do"ain of insu'ance on 9hich it is /ased c'u"/0es

do9n i.e., 9o'%ing of the 0a9 of 0a'ge nu"/e' on 9hich p'e"iu" and

inde"nity ca0cu0ations a'e /ased /'ea%s do9n. The p'i1ate insu'ance

co"panies of 'egiona0 natu'e 9i00 go /an%'upt 9hi0e paying inde"nity

c0ai"s un0ess it sp'ead 'is% o1e' space. ?a'"ing o' c'op p'oduction /eing a

/io0ogica0 p'ocess, con1e'ting input into output ca''ies the g'eatest 'is% in

fa'"ing. This, coup0ed 9ith "a'%et 'is%,

i"pinges on the p'ofits e:pected f'o" fa'"ing. Efficient 'is% 'educing and

0oss "anage"ent st'ategies such as c'op insu'ance 9ou0d ena/0e the fa'"e's

to ta%e su/stantia0 'is%s 9ithout /eing e:posed to ha'dship. The fa'"e' does

not ha1e to go fo' dist'ess sa0e of his p'oduce to 'epay p'i1ate de/ts.


27/4427

C'edit insu'ance ensu'es 'epay"ent of c'edit, 9hich he0ps in "aintaining

the 1ia/i0ity of fo'"a0 c'edit institutions. The go1e'n"ent is 'e0ie1ed f'o"

0a'ge e:penditu'es incu''ed fo' 9'iting)off Ru'a0 0oans, p'o1iding 'e0ief and

dist'ess 0oans etc., in the case of c'op fai0u'e. A p'ope'0y designed and

i"p0e"ented c'op insu'ance p'og'a""e 9i00 p'otect the nu"e'ous

1u0ne'a/0e s"a00 and "a'gina0 fa'"e's f'o" ha'dship, /'ing in sta/i0ity in

the fa'" inco"es and inc'ease the fa'" p'oduction $!hende ++(. The

fa'"e' is 0i%e0y to a00ocate 'esou'ces in p'ofit "a:i"i>ing 9ay if he is su'e

that he 9i00 /e co"pensated 9hen his inco"e is catast'ophica00y 0o9 fo'

'easons /eyond his cont'o0. A fa'"e' "ay g'o9 "o'e p'ofita/0e.

c'ops e1en though they a'e 'is%y. Si"i0a'0y, fa'"e' "ay adopt

i"p'o1ed /ut unce'tain techno0ogy 9hen he is assu'ed of co"pensation in

case of fai0u'e $Ha>e0s -FF+(. This 9i00 inc'ease 1a0ue added f'o" 'u'a0, and

inco"e of the fa'" fa"i0y. Access and a1ai0a/i0ity of insu'ance, changes the

attitude of the fa'"e' and induces hi" to ta%e decisions 9hich, othe'9ise,

9ou0d not ha1e ta%en due to a1e'sion to 'is%. ?o' e:a"p0e, 'ain)fed paddy

9as cu0ti1ated in one of the 'is%iest dist'icts i.e, Anu'adhapu'a dist'ict, of S'i

Lan%a, fo' the fi'st ti"e in -F*+, as insu'ance faci0ity 9as a1ai0a/0e to the

fa'"e's $Ray -FB-(. !hende $+( found that inco"e of the fa'"

househo0ds f'o" se"i)a'id t'opics engaged p'edo"inant0y in 'ain)fed

fa'"ing 9as positi1e0y associated 9ith the 0e1e0 of 'is%. Hence, the

a1ai0a/i0ity of fo'"a0 inst'u"ent fo' diffusion of 'is% 0i%e c'op insu'ance 9i00

faci0itate fa'"e's to adopt 'is%y /ut 'e"une'ati1e techno0ogy and fa'"

acti1ities, 'esu0ting in inc'eased inco"e. So"e of the studies confi'" the

con1entiona0 1ie9 that "o'a0 ha>a'd incenti1e 0ead insu'ed fa'"e's to use

fe9e' che"ica0 inputs $S"ith and Good9in -FF*(.

!a/coc% and Hennessy $-FF*(, find that at 'easona/0e 0e1e0s of 'is%

a1e'sion, nit'ogen fe'ti0i>e' and insu'ance a'e su/stitutes, suggesting that


28/4428

those 9ho pu'chase insu'ance a'e 0i%e0y to dec'ease nit'ogen fe'ti0i>e'

app0ications. A study /y Ho'o9it> and Lichten/e'g $-FF( find that in the

5S 8id9est, c'op insu'ance e:e'ts conside'a/0e inf0uence on "ai>e fa'"e'sK

che"ica0 use decisions. Those pu'chasing insu'ance app0ies significant0y

"o'e nit'ogen pe' ac'e $-F J(, spend "o'e on pesticides $+- J(, and t'eats

"o'e ac'eage 9ith /oth he'/icides and insecticides $B J and * J( than

those not pu'chasing insu'ance. These 'esu0ts suggest that /oth fe'ti0i>e' and

pesticides "ay /e 'is%)inc'easing inputs.

An ana0ysis of data f'o" 5S 'u'a0 indicates that the p'oduce'Ks fi'st

'esponse to 'is% is to 'est'ict the use of de/t. ;'ice suppo't p'og'a""es and

c'op insu'ance a'e su/stitutes in 'educing p'oduce' 'is%. The a1ai0a/i0ity of

c'op insu'ance in a setting 9ith p'ice suppo'ts a00o9s p'oduce's to se'1ice

highe' 0e1e0s of de/t 9ith no * inc'ease in 'is% $At9ood et a0., -FF*(. 8ish'a

$-FF( ana0y>ed the i"pact of a c'edit)0in%ed Co"p'ehensi1e C'op

Insu'ance Sche"e $CCIS( on c'op 0oans, especia00y to s"a00 fa'"e's in

Gu2a'at. It is o/se'1ed that CCIS had a co00ate'a0 effect as 'ef0ected th'ough

the inc'eased 0oan a"ount pe' /o''o9e' and 'eduction in the p'opo'tion of

non)/o''o9e's a"ong s"a00 fa'"e's.

I22ue2 Related t+ Rural In2uran1e

Issues 'e0ated to 'u'a0 a'e of t9o types. One, issues conce'ning o' 'e0ated to

e:isting sche"e na"e0y 4AIS, and t9o, issues of gene'a0 natu'e 9hich go

/eyond the p'esent "echanis"s fo' Ru'a0 insu'ance.


29/4429

• ISSUES RELATE* TO NAIS

The fa'"ing co""unity at 0a'ge does not see" to /e satisfied 9ith the

pa'tia0 e:pansion of scope and content of c'op insu'ance sche"e in the fo'"

of 4AIS o1e' Co"p'ehensi1e C'op Insu'ance Sche"e $CCIS(. The'e a'e

issues 'e0ating to its ope'ation, go1e'nance and financia0 sustaina/i0ity. Afte'

e:tensi1e 'e1ie9ing, gathe'ing pe'ceptions of the fa'"ing co""unity and

discussion 9ith e:pe'ts f'o" AIC, Ru'a0 depa't"ent, /an%e's, acade"icians

and othe' 'ep'esentati1es in Andh'a ;'adesh on the pe'fo'"ance of 4AIS,

so"e "odifications ha1e /een suggested in its designing to "a%e to it "o'e

effecti1e and fa'"e') f'iend0y. Redu1ti+n +f in2uran1e unit t+ )illa7e

Pan1ha(at leDel As of no9, the 4ationa0 Ru'a0 Insu'ance Sche"e is

i"p0e"ented on the /asis of homogeneous area app'oach, and the a'ea

$insu'ance unit( at p'esent is the 8anda0 = Ta0u% = !0oc% o' e7ui1a0ent unit,

in "ost instances. These a'e 0a'ge ad"inist'ati1e units 9ith conside'a/0e

1a'iations in yie0ds and i"pact of natu'a0 ca0a"ities. ?o' the sche"e to

/eco"e "o'e popu0a', the unit fo' dete'"ining c0ai" shou0d /e 'educed tothe 0e1e0 of N1i00age‟ in the case of 0a'ge 1i00ages and to Nc0uste' of 1i00ages‟

in the case of s"a00 1i00ages. Ho9e1e', /ecause of inf'ast'uctu'a0 and

financia0 const'aints States cou0d not 0o9e' the unit to 1i00age panchayat.

Idea00y, ndividual approach 9ou0d 'ef0ect c'op 0osses on a 'ea0istic /asis,

and has /een 'ega'ded "ost desi'a/0e $Dande%a', -F(.


30/4430

Ho9e1e', unde' the Indian conditions, i"p0e"enting a c'op insu'ance

sche"e at the indi1idua0 fa'" unit 0e1e0 is /eset 9ith p'o/0e"s, such as

• 4on)a1ai0a/i0ity of the past 'eco'ds of 0and su'1eys, o9ne'ships,

tenancy and yie0ds at indi1idua0 fa'" 0e1e0

• S"a00 si>e of fa'" ho0dings

• Re"oteness of ha"0ets and inaccessi/i0ity of so"e fa'")ho0dings

• A 0a'ge 1a'iety of c'ops, 1a'ied ag'o)c0i"atic conditions and pac%age

of p'actices, and

• Inade7uate inf'ast'uctu'e.

ed /y go1e'n"ent.


31/4431

Ru'a0 in India is not 2ust dependent on 9eathe' conditions, /ut a0so

suffe's the /'unt of natu'a0 disaste's. It 9i00 /e 7uite in o'de' fo' c'op

insu'ance to /e 'ega'ded as a suppo't "easu'e in 9hich go1e'n"ent p0ays an

i"po'tant 'o0e, /ecause of the /enefit it p'o1ides not "e'e0y to the insu'ed

fa'"e's, /ut to the enti'e nationa0 econo"y due to the fo'9a'd and /ac%9a'd

0in%ages 9ith the 'est of the econo"y. Society can significant0y gain f'o"

"o'e efficient sha'ing of c'op and natu'a0 disaste' 'is%s. The p'incip0e

/ehind the e1a0uation of c'op insu'ance sche"es a00 o1e' the 9o'0d a'e a0ong

these 0ines fo' 'ecei1ing the acti1e suppo't and finance of the Go1e'n"ent.

Integ'ating the 1a'ious 'is% "itigation "ethods and st'ea"0ining the funds

not on0y in2ects accounta/i0ity and p'ofessiona0is" into the syste", /ut a0so

inc'ease econo"ic efficiency. The suppo't "echanis" of "a2o' count'ies is

gi1en in the Ta/0e B.-. Go1e'n"ent can faci0itate Ru'a0 insu'ance in se1e'a0

9ays. In case fa'"e's a'e as%ed to pay fu00 p'e"iu" the"se01es then

chances of adoption of insu'ance a'e /0ea%. The'e is a need fo' so"e

su/sidisation /y go1e'n"ent. It can p'o1ide info'"ation, on 9eathe'

patte'ns, 0ocations of fa'"s and c'ops, incidence and histo'y of pe'i0s and

c'op yie0ds. It can he0p to "eet the costs of the 'esea'ch to /e unde'ta%en

/efo'e sta'ting an Ru'a0 insu'ance p'og'a". It can a0so p'o1ide 'einsu'ance.

:h( Y+u Need A Rural In2uran1e

ItKs a09ays /est to /e p'epa'ed fo' unfo'tunate ci'cu"stances and this is 9hy

you shou0d conside' getting a 'u'a0 insu'ance po0icy. A 'u'a0 insu'ance po0icy


32/4432

9i00 shie0d you f'o" financia0 'uin in case accidents happen. Getting 'u'a0

insu'ance 9i00 a0so gi1e you added secu'ity.

-. "uaranteed Surrender )alue+. Maturit( Benefit

. *eath Benifit

:h( Y+u Need A Rural In2uran1e P+li1(

ItKs a09ays /est to /e p'epa'ed fo' unfo'tunate ci'cu"stances and this is 9hy

you shou0d conside' getting a 'u'a0 insu'ance po0icy. A 'u'a0 insu'ance po0icy

9i00 shie0d you f'o" financia0 'uin in case accidents happen. Getting 'u'a0insu'ance 9i00 a0so gi1e you added secu'ity.

o Inc'ease in c'edit finance in the 'u'a0 a'eas

o Inc'ease in inco"e and assets of 'u'a0 poo'

o A1ai0a/i0ity of info'"ation fo' decision "a%ing

o *e2i7n tail+red =r+du1t2

o E2ta'li2h effi1ient meth+d2 +f =remium 1+lle1ti+n2 and 1laim2

2ettlement2.

Pr+7re22 and Perf+rman1e +f Rurall In2uran1e

The 7uestion of int'oducing an 'u'a0 insu'ance sche"e 9as e:a"ined

soon afte' the Independence in -FB. ?o00o9ing an assu'ance gi1en in this

'ega'd /y the then 8inist'y of ?ood and Ru'a0 $8O?A( in the Cent'a0

Legis0atu'e to int'oduce c'op and catt0e insu'ance, a specia0 study 9as


33/4433

co""issioned du'ing -FB) to conside' 9hethe' insu'ance shou0d fo00o9

an N ndividual approach! o' a N "omogenous area approach‟. The study

fa1ou'ed Nhomogenous area approach‟ e1en as 1a'ious ag'o)c0i"atica00y

ho"ogenous a'eas a'e t'eated as a sing0e unit and the indi1idua0 fa'"e's in

such cases pay the sa"e 'ate of p'e"iu" and 'ecei1e the sa"e /enefits,

i''especti1e of thei' indi1idua0 fo'tunes.

In -F*, the Go1e'n"ent int'oduced a C'op Insu'ance !i00 and

ci'cu0ated a "ode0 sche"e of c'op insu'ance on a co"pu0so'y /asis to State

go1e'n"ents fo' thei' 1ie9s. The /i00 p'o1ided fo' the Cent'a0 go1e'n"ent to

f'a"e a 'einsu'ance sche"e to co1e' inde"nity o/0igations of the States.

Ho9e1e', none of the States fa1ou'ed the sche"e /ecause of the financia0

o/0igations in1o01ed in it. On 'ecei1ing the 'eactions of the State

go1e'n"ents, the su/2ect 9as 'efe''ed to an E:pe't Co""ittee headed /y the

then Chai'"an, Ru'a0 ;'ice Co""ission, in Mu0y, -FB fo' fu00 e:a"ination

of the econo"ic, ad"inist'ati1e, financia0 and actua'ia0 i"p0ications of the

su/2ect.

CRO; I4S5RA4CE A;;ROACHES It is i"po'tant to "ention in the

/eginning that c'op insu'ance is /ased on eithe' A'ea app'oach o' Indi1idua0

app'oach. A'ea app'oach is /ased on Ndefined a'eas‟ 9hich cou0d /e a

dist'ict, a ta0u%, a /0oc%=a "anda0 o' any othe' s"a00e' contiguous a'ea.

The inde"nity 0i"it o'igina00y 9as pe' cent, 9hich 9as changed to

* pe' cent, pe' cent and F pe' cent co''esponding to high, "ediu" &

0o9 'is%s a'eas. The actua0 a1e'age yie0d = hecta'e fo' the defined a'ea is

dete'"ined on the /asis of C'op Cutting E:pe'i"ents $CCEs(. These CCEs

a'e the sa"e conducted as pa't of Gene'a0 C'op Esti"ation Su'1ey $GCES(


34/4434

in 1a'ious states. If the actua0 yie0d in CCEs of an insu'ed c'op fo' the

defined a'ea fa00s sho't of the specified gua'anteed yie0d o' th'esho0d yie0d,

a00 the insu'ed fa'"e's g'o9ing that c'op in the a'ea a'e entit0ed fo' c0ai"s.

The c0ai"s a'e ca0cu0ated using the fo'"u0a $Gua'anteed ie0d ) Actua0

ie0d( Su" Insu'ed of the fa'"e' $Gua'anteed ie0d(.

The c0ai"s a'e paid to the c'edit institutions in the case of 0oanee

fa'"e's and to the indi1idua0s 9ho insu'ed thei' c'ops in the othe' cases. The

c'edit institution 9ou0d ad2ust the a"ount against the c'op 0oan and pay the

'esidua0 a"ount, if any, to the fa'"e'. A'ea yie0d insu'ance is p'actica00y an

a00)'is% insu'ance. This is 1e'y i"po'tant fo' + de1e0oping count'ies 9ith a

0a'ge nu"/e' of s"a00 fa'"s. Ho9e1e', the'e a'e de0ays in co"pensation

pay"ents. In the case of indi1idua0 app'oach, assess"ent of 0oss is "ade

sepa'ate0y fo' each insu'ed fa'"e'. It cou0d /e fo' each p0ot o' fo' the fa'"

as a 9ho0e $consisting of "o'e than one p0ot at diffe'ent 0ocations(.

Indi1idua0 fa'")/ased insu'ance is suita/0e fo' high)1a0ue c'ops g'o9n

unde' standa'd p'actices. Lia/i0ity is 0i"ited to cost of cu0ti1ation. This type

of insu'ance p'o1ides fo' accu'ate and ti"e0y co"pensation. Ho9e1e', it

in1o01es high ad"inist'ati1e costs.


35/4435

peop0e and a 1a'iety of c'ops its ope'ationa0 costs a'e 0o9 t'anspa'ent and

o/2ecti1e ca0cu0ation of 9eathe' inde: and 7uic% sett0e"ent of c0ai"s.

"l+'al Pi1ture +f Rural In2uran1e

The 'u'a0 insu'ance sche"es /oth in de1e0oped and de1e0oping

nations a'e high0y dependent on the go1e'n"ent suppo't in 1a'ious fo'"s

0i%e su/sidy on p'e"iu", 'ei"/u'se"ent of ad"inist'ati1e e:penses of

insu'ance co"panies, 'einsu'ance suppo't fo' 'is%y c'op 0ines, technica0

guidance and financia0 suppo't. Su/sidy on insu'ance p'e"iu" in the 'ecent

yea's 9as esti"ated to /e * pe' cent in 5SA, B pe' cent in Canada, )*

pe' cent in ;hi0ippines and pe' cent in Spain. O1e' - count'ies in the

9o'0d ha1e so"e fo'" of c'op insu'ance.

The 5SA, Canada, 8e:ico, and Spain do"inate the 9o'0d c'op

insu'ance "a'%et in te'"s of p'e"iu". The tota0 annua0 'u'a0 insu'ance

p'e"iu"s, 9o'0d9ide, in + 9as 5SP B.- /i00ion 9hich a"ounted to .*

pe' cent of esti"ated fa'" gate 1a0ue of 'u'a0 p'oduction. As against this,

p'e"iu" to fa'" gate 1a0ue of output in India in the sa"e yea' 9as .-.Geog'aphica00y these insu'ance p'e"iu"s a'e concent'ated in de1e0oped

fa'"ing and fo'est'y 'egions, i.e. in 4o'th A"e'ica $*F pe' cent(, ed, /ut fo' the past -

yea's it has not /een su/sidi>ed. 8any p'i1ate p0aye's ha1e no9 ente'ed the

fie0d of c'op insu'ance. These co"panies fi: the p'e"iu" a"ount /ased on


36/4436

the histo'y and past of the pa'ticu0a' 'is%. Esti"ation of da"age is the

/iggest cha00enge faced /y the c'op insu'e's. Se1e'a0 c'ops such as "ai>e,

9heat, sunf0o9e' and cit'us a'e co1e'ed. South Af'ica is an e:a"p0e of ho9

fa'"e's can get the /enefit of c'op insu'ance th'ough p'i1ate co"panies

e1en afte' 9ithd'a9a0 of su/sidies. As in India, c'op insu'ance in Canada

9as i"p0e"ented th'ough an a'ea app'oach. Resea'ch /y Tu'1ey and Is0a"

pointed out that the a'ea app'oach 9as not on0y un/a0anced /ut a0so

ineffecti1e. The e"pi'ica0 'esea'ch f'o" diffe'ent fa'"s confi'"ed the /e0ief

that indi1idua0 app'oach to c'op insu'ance is /ette' fo' 'educing 'is%, /ut it

a0so i"p0ies the use of highe' p'e"iu"s. The a'ea app'oach in Canada

p'o1ed to /e ine7uita/0e, as it did not ensu'e a fai' dist'i/ution of /enefits

a"ong the fa'"e's. ?a'"e's 9ith yie0ds c0osest to the a1e'age 9ou0d /e the

ones to get the "ost /enefits.


37/4437

In ;hi0ippines, c'op insu'ance p'og'a""e is i"p0e"ented th'ough

;hi0ippines C'op Insu'ance Co'po'ation $;CIC( 9hich 9as esta/0ished in

-FB. 8a2o' c'ops co1e'ed a'e 'ice and co'n. High 1a0ue c'ops such as 1i>.

to"ato, potato, ga'0ic, and othe' 'oot + c'ops a'e a0so co1e'ed unde' inte'i"

insu'ance co1e'age. The co1e'age is 0i"ited to cost of inputs p0us an

additiona0 a"ount up to + pe' cent, the'eof on an optiona0 /asis. 8u0ti 'is%s

co1e' p'o1iding The Go1e'n"ent su/sidy in p'e"iu" goes up to pe'

cent. In case of /o''o9ing fa'"e's, 0ending institutions 9i00 a0so sha'e pa't

of the p'e"iu". In Mapan, the 'u'a0 insu'ance sche"e 9as esta/0ished in

-FB. At p'esent, the sche"e is co"posed of * p'og'a""es Rice, e of

cu0ti1ated a'ea o' a ce'tain sca0e of ope'ation is co"pu0so'y.

. The Cent'a0 go1e'n"ent su/sidi>es fa'"e's 9ith pa't of thei' p'e"iu"s,

and


38/4438

. The Cent'a0 go1e'n"ent su/sidi>es the insu'e's 9ith pa't of thei' office

e:penses.

In S'i Lan%a the fi'st e:pe'i"enta0 c'op insu'ance sche"e 9as esta/0ished in

-F as a pi0ot p'o2ect co1e'ing 'ice cu0ti1ation on0y. The e:pe'ience du'ing

the fi'st - yea's pe'iod 9as 7uite fa1o'a/0e. The c'op insu'ance /oa'd 9as

esta/0ished in -FB unde' a pa'0ia"enta'y act to ope'ate a co"p'ehensi1e

'u'a0 insu'ance sche"e, co1e'ing a00 "a2o' c'ops and 0i1estoc%. Incase of

'ice and othe' c'ops, insu'ance p'otection 9as p'o1ided against 0ac% of

9ate', d'ought, e:cessi1e 9ate', f0oods, diseases, insect infestation, da"age

/y 9i0d ani"a0s and 0osses due to non)adhe'ence to app'o1ed "ethods of

fa'"ing. A 0a'ge pe'centage $J( of the tota0 ac'eage insu'ed is paddy and

othe' c'ops that 'ecei1ed 'u'a0 c'edit. Due to inc'eased cost of inputs, "o'e

fa'"e's a'e e:pected to see% 'u'a0 c'edit.

A 0ending institution 9i00 not dis/u'se any 'u'a0 c'edit 9ithout p'ope'

insu'ance co1e'age. The co1e'age of insu'ance sche"e is /ased on the cost

of p'oduction. The sche"e co1e's pay"ent of inde"nities of co"p0ete and

pa'tia0 0osses as 9e00 as 0osses at 1a'ious stages of p'oduction.

In 5SA, the go1e'n"ent suppo'ted c'op insu'ance p'og'a" is i"p0e"ented

/y a/out - p'i1ate insu'e's, /esides ?ede'a0 C'op Insu'ance Co'po'ation

$?CIC(, a go1e'n"ent co"pany. The p'og'a" is ad"iniste'ed /y the Ris%

8anage"ent Agency $R8A(, on /eha0f of the 5S Depa't"ent of Ru'a0

$5SDA(. Once a c'op insu'ance p'og'a" is app'o1ed /y the go1e'n"ent, the

R8A gets the p'e"iu" 'ates ca0cu0ated fo' diffe'ent c'ops = states = counties

/y uti0i>ing the se'1ices of the 4ationa0 C'op Insu'ance Se'1ice $4CIS(. Any

app'o1ed insu'e', can se00 these insu'ance p'oducts, at the 'ates ce'tified /y

the R8A.

A00 insu'e's i"p0e"enting the p'og'a", a'e e0igi/0e fo' the sa"e 0e1e0 of

p'e"iu" su/sidy, and the ad"inist'ati1e and ope'ating e:penses of the


39/4439

insu'e' to9a'ds i"p0e"enting c'op insu'ance p'og'a", a'e enti'e0y

'ei"/u'sed /y the go1e'n"ent. Since the insu'ance co"panies a'e

i"p0e"enting the c'op insu'ance p'og'a" at a p'e"iu" 'ate set /y R8A,

the go1e'n"ent a0so p'o1ides a 'easona/0e 0e1e0 of 'einsu'ance suppo't

$Ha>e0, ;ete' et al ., -F*( . The 'einsu'ance suppo't 9ou0d /e highest fo'

de1e0op"enta0 0ines $ne9 and unsta/0e c'ops( and 0o9est fo' co""e'cia0

0ines $esta/0ished and sta/0e c'ops(. In Spain, the Go1e'n"ent su/sidy in

p'e"iu" 'anges f'o" + pe' cent to pe' cent. C'op Insu'ance in Spain is

a 9e00 de1e0oped p'oduct 9ith syste"atic de1e0op"ent of actua'ia0 science

and p'icing and standa'd 0oss assess"ent p'ocedu'es. Insu'ance co1e'age is

a1ai0a/0e fo' "a2o'ity of the c'ops against "ost of the natu'a0 and non)

p'e1enta/0e 'is%s. Spain has a uni7ue "ode0 of c'op insu'ance in te'"s of

/oth the p'og'a" and the o'gani>ationa0 set)up. Spain has, 9hatKs %no9n as

the KCo"/ined Ru'a0 Insu'ance Syste"K. The syste" sta'ted in -F, has

'ecent0y ce0e/'ated its Si01e' Mu/i0ee.The /asic featu'e of the syste" is that

a00 insu'a/0e 'u'a0 'is%s a'e co1e'ed /y the p'i1ate secto' and a00 types of

po0icies a'e su/sidi>ed /y the state. 8ost po0icies a'e of the "u0tip0e 'is%s

type. The custo"e's of the syste" a'e fa'"e's 9ho can ta%e out 'u'a0

insu'ance indi1idua00y, o' o/tain co1e'age th'ough co)ope'ati1es and

p'ofessiona0 o'gani>ations. ;a'ticipation in the syste" is 1o0unta'y. It is a

syste" in 9hich KAGROSEG5ROK ope'ates, /oth in its o9n 'ight and on

/eha0f of the insu'e's, 9ho "a%e up the co)insu'ance poo0. The syste" is

/ased on an int'icate pa'tne'ship /et9een the p'i1ate and the pu/0ic secto'.


40/4440

The %ey p0aye's of the syste" /esides fa'"e's, a'e E4ESA $Entidad Estate

de Segu'os Ag'a'ios(, attached to the 8inist'y of Ru'a0 AGROSEG5RO

$Ag'upacion Espano0a de Entidades Asegu'ado'as de 0os Segu'os Ag'a'ios

Co"/inados( a poo0 of fo'ty p'i1ate insu'ance co"panies 9hich pa'ticipate

in a syste" of co)insu'ance CCS $Conso'cio de Co"pensacion de Segu'os(,

a pu/0ic ente'p'ise 9ith its o9n 'esou'ces, ope'ating 'e)insu'e' $unde' the

cont'o0 of the 8inist'y of Econo"y(, etc. A %ey featu'e of the Spanish

syste" is the pa'ticipato'y app'oach. A00 sta%eho0de's a'e 'ep'esented in

E4ESA, 9hich ena/0es ta%ing st'ategic decisions and fi:ing the f'a"e9o'%

fo' the Syste" $annua0 p0ans( in 0ine 9ith thei' needs. ?o' any gi1en yea',

E4ESA ta%es the 0ead in pu/0ishing the annua0 p0an.


41/4441

CONCLUSION,-

• Ru'a0 Insu'ance "a'%et is on the th'esho0d of a spectacu0a' g'o9th.

The suppo't "easu'es p'oposed /y the go1e'n"ent in the ho'ticu0tu'e

secto' potentia0 of o'ganic fa'"ing g'o9ing c0out of a'o"atic and

"edicina0 p0ants !io)diese0 p0ants cont'act fa'"ing co'po'ate

fa'"ing and integ'ated insu'ance $supp0y chain and 9a'e housing( etc

a'e 0i%e0y to put 'u'a0 insu'ance on high pedesta0. The go1e'n"ent

unde'0ined its p'io'ities fo' ag'icu0tu'e in + /y setting a ta'get of

dou/0ing 'u'a0 c'edit in ne:t th'ee yea's. A 0a'ge chun% of c'edit fo'

ag'icu0tu'e 9ou0d /e suppo'ted /y insu'ance co00ate'a0. Conside'ing

consu"e's‟ p'efe'ence fo' /'anded 'u'a0 p'oducts /ig co'po'ate

houses to o ha1e ta%en up co'po'ate fa'"ing, inc'easing the de"and

fo' insu'ance. Ru'a0 insu'ance in futu'e though is 0i%e0y to /e 0a'ge0y

de"and d'i1en, the effo'ts of the go1e'n"ent to suppo't and finance

insu'ance p'oducts and = o' faci0itate congenia0 en1i'on"ent as

"eaningfu0 'is% "anage"ent too0 9ou0d fu'the' enhance the potentia0

and c'edi/i0ity of 'u'a0 insu'ance.• Despite p'og'ess of i''igation and i"p'o1e"ent in inf'ast'uctu'e and

co""unication the 'is% in ag'icu0tu'e p'oduction has inc'eased in the

count'y. The 'is% is "uch highe' fo' fa'" inco"e than p'oduction, as

is e1ident f'o" 0o9e' 'is% in a'ea and highe' 'is% in p'oduction. State

9ise 'esu0ts sho9 that on0y in the states 9he'e i''igation is 1e'y

'e0ia/0e, it he0ped in 'educing the 'is%. Those states 9he'e i''igation is

not 1e'y dependa/0e continue to face high 'is%. In so"e states fa'"e's

face t9in p'o/0e" of 1e'y 0o9 p'oducti1ity acco"panied /y high 'is%

of p'oduction. As, 9ith the passage of ti"e, neithe' techno0ogy no'

any othe' 1a'ia/0e he0ped in 'educing p'oduction 'is%, pa'ticu0a'0y in


42/4442

0o9 p'oducti1ity states, the'e is st'ong need to de1ise and e:tend

insu'ance p'oducts to 'u'a0 p'oduction.

• Despite 1a'ious sche"es 0aunched f'o" ti"e to ti"e in the count'y

ag'icu0tu'e insu'ance has se'1ed 1e'y 0i"ited pu'pose. The co1e'age

in te'"s of a'ea, nu"/e' of fa'"e's and 1a0ue of 'u'a0 output is 1e'y

s"a00, pay"ent of inde"nity /ased on a'ea app'oach "iss affected

fa'"e's outside the co"pensated a'ea, and "ost of the sche"es a'e

not 1ia/0e. E:panding the co1e'age of c'op insu'ance 9ou0d the'efo'e

inc'ease go1e'n"ent costs conside'a/0y. 5n0ess the p'og'a""e is

'est'uctu'ed ca'efu00y to "a%e it 1ia/0e, the p'ospects of its futu'e

e:pansion to inc0ude and i"pact "o'e fa'"e's is 'e"ote. This 'e7ui'es

'ene9ed effo'ts /y Go1e'n"ent in te'"s of designing app'op'iate

"echanis"s and p'o1iding financia0 suppo't fo' 'u'a0 insu'ance.

;'o1iding si"i0a' he0p to p'i1ate secto' insu'e's 9ou0d he0p in

inc'easing insu'ance co1e'age and in i"p'o1ing 1ia/i0ity of the

insu'ance sche"es o1e' ti"e.

•


43/4443

!I!LIOGRA;H

-.


44/44

Date post:	07-Jul-2018
Category:	Documents
Upload:	vinay-rane
View:	216 times
Download:	0 times

283916453 Rural Insurance

Documents