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    Agriculture Insurance in India

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    Navin_Pandya
    The document discusses the history and current status of crop insurance in India. It outlines how crop insurance began in India in the 1940s and details various schemes introduced over the decades, with the National Agricultural Insurance Scheme (NAIS) currently in place since 1999. NAIS covers hundreds of millions of farmers but has low claim ratios. The document also examines the need for crop insurance in India given risks farmers face from weather and calls for expanding coverage to help stabilize farm incomes.

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    Agriculture Insurance in India

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    Navin_Pandya
    263 views15 pages
    The document discusses the history and current status of crop insurance in India. It outlines how crop insurance began in India in the 1940s and details various schemes introduced over the decades, with the National Agricultural Insurance Scheme (NAIS) currently in place since 1999. NAIS covers hundreds of millions of farmers but has low claim ratios. The document also examines the need for crop insurance in India given risks farmers face from weather and calls for expanding coverage to help stabilize farm incomes.

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    MBA(International Agribusiness) Seminar Links are not included....

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    The document discusses the history and current status of crop insurance in India. It outlines how crop insurance began in India in the 1940s and details various schemes introduced over the decades, with the National Agricultural Insurance Scheme (NAIS) currently in place since 1999. NAIS covers hundreds of millions of farmers but has low claim ratios. The document also examines the need for crop insurance in India given risks farmers face from weather and calls for expanding coverage to help stabilize farm incomes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    263 views15 pages

    Agriculture Insurance in India

    Uploaded by

    Navin_Pandya
    The document discusses the history and current status of crop insurance in India. It outlines how crop insurance began in India in the 1940s and details various schemes introduced over the decades, with the National Agricultural Insurance Scheme (NAIS) currently in place since 1999. NAIS covers hundreds of millions of farmers but has low claim ratios. The document also examines the need for crop insurance in India given risks farmers face from weather and calls for expanding coverage to help stabilize farm incomes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 15

    Seminar

    On Agriculture Insurance

    FLOW OF PRESENTATION

    Introduction Objectives History Need of Agriculture Insurance in India World Scenario To know the present status of crop insurance in India. Constraints Conclusion Suggestion Companies in India References
    Navin G. Pandya

    Introduction
     Crop Insurance is one of the risk mitigation tool in agriculture.  It provides insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests & diseases.  It helps to stabilize farm incomes, particularly in disaster years.

    Navin G. Pandya

    Objectives
    To know the need of agricultural insurance in India. To know the present status of crop insurance in India.

    Navin G. Pandya

    History of Crop Insurance In India


    Special study was conducted by The Ministry of Food and Agriculture

    1947-1948

    1965

    The Government introduced a Crop Insurance Bill and circulated a model scheme of crop insurance on compulsory basis to constituent State governments for their views.Non of the state govt. accept it.

    1970

    Expert Committee headed by the Chairman, Agricultural Price Commission made full examination of the economic, administrative, financial and actuarial implications of the subject.

    Navin G. Pandya

    1972-1978

    The General Insurance Department of Life Insurance Corporation of India introduced a Crop Insurance Scheme on H-4 cotton. 1972- GIC was set up.

    1979-1984

    Pilot Crop Insurance scheme was started. In 13 states it was implemented.

    1985-1999

    The Comprehensive Crop Crop Insurance Scheme (ECIS) 1997 -1998: ExperimentalInsurance Scheme(CCIS) was was introduced. introduced during Rabi 1997-98 season which was implemented 15 States and 2 five States. (100% Subsidy) in 14 districts of UTs implemented the Scheme until Kharif 1999.

    Navin G. Pandya

    1999 onwards

    NAIS was started in 1999 and its still going on

    2003-2004

    Farm Income Insurance Scheme AIC commenced business from 1st April 2003 & was incorporated on 20th Dec 2002

    2004

    Rainfall based insurance Weather based crop insurance.

    Navin G. Pandya

    Need of Agricultural Insurance


    Farming is mainly depended on weather. Farmers face floods, drought, pests, disease, and a plethora of other natural disasters. The weather is their greatest adversary, something that can never be controlled by man. Over 8% of India is vulnerable to drought. On an average, crop on 12 million hectares of land are damaged every year by natural calamities and adverse seasonal conditions, grossly impacting the level of agricultural productivity

    Navin G. Pandya

    Crop insurance is a risk management tool that farmers can use in today's agricultural world. For a premium, farmers can pass their risk onto a third party. Efficient risk reducing and loss management strategies such as crop insurance would enable the farmers to take substantial risks.

    Navin G. Pandya

    Risks in Agriculture

    Production Risks
    Weather Risks

    Out put Risks

    Price Risk
    Pest and Diseases Improper Cultivation Practices Policy is

    Navin G. Pandya

    Crop Insurance in World


    Over 100 countries in the world have some form of crop insurance.The SA, Canada, Mexico, and Spain dominate the world crop insurance market in terms of premium.
    Table 1

    Sr.No. 1 2 3

    Country USA Canada Philippines

    Over all Subsidy % 70-75 70 70 % for loanee farmers and about 50% for nonloanee farmers 50-60 Started 50% and now 10%
    Source: Raju, S & Chand, Ramesh(2008), Agriculture Navin G. Pandya Insurance in India Problems & Perspectives

    4 5

    Spain India

    Present Status of Crop Insurance In India

    In India National Agricultural Insurance Scheme (NAIS) is existing since 1999. Scheme is available to all farmers loanee and non-loanee both irrespective of the size of their holdings.Compulsory for loanee farmers and optional for non-loanee farmers. Till Rabi 2009 it was implemented in 23 states and 2 Union Territories.
    Navin G. Pandya

    Indian Crop Insurance Scenario for NAIS from RABI 1999-2000 TO RABI 2008-2009

    Table 2 ARMERS COVERED Crore 13.47 AREA (IN Ha.) Crore 2.10 SUM PREMIUM INSURED Rs. Crore Rs. Crore 148265 4426 CLAIMS CLAIM FARMERS PAID RATIO BENEFITTED Rs. % Crore Crore 12636 285 3.56

    Source: AIC INDIA

    Navin G. Pandya

    CROPS COVERED

    Leading States on the basis of Area covered RABI 1999-2000 TO RABI 2008-2009
    Table 3 STATE AREA (Lac Ha) PREMIUM (Rs.Crore) CLAIMS (Rs.Crore) CLAIM RATIO % 171.45 211.44 309.71 333.68 310.46 220.38
    422.54 222.03 208.55

    MADHYA PRADESH ANDHRA PRADESH RAJASTHAN GUJARAT MAHARASHTRA UTTAR PRADESH KARNATAKA CHHATTISGARH ORISSA BIHAR

    427.22 297.33 258.77 217.42 211.19 182.35 155.12 119.43 93.00 45.27

    501.87 833.54 353.41 767.71 475.48 299.41 330.80 109.29 230.65 140.98
    Navin G. Pandya

    860.50 1762.46 1094.58 2561.71 1476.23 659.87 1397.80 242.67 481.04

    1023.82 726.22 Source: AIC INDIA

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