This presentation takes you through Prospects and insights of Crop Insurance. Solicitation of Business, Operation Features, challenges and Technological Interventions related Crop Insurance are shown.
2. INDIAN AGRICULTURE
“GAMBLE WITH MONSOON”
Agriculture in India accounts for 52% of employment and sustain
69% of population but still facing a lot of problems on multiple
fronts such as:
Increase in Population , income and price , depleting resources
and climate change etc.
Due to all these Indian farmers face a variety of Problems:-
Agricultural, Credit , Irrigation , Transportation and many more . .
The CRUX of all the Problems lies in YIELD
.
.
Therefore CROP INSURANCE. . .
3. A BRIEF . . .
Crop Insurance Bill – 1965
CCIS (Comprehensive Crop Insurance Scheme) – 1985
existed for 15 years
NAIS replaced CCIS – 1999
AICIL established – 2002
PMFBY – 2016
Agriculture contributes 14% to GDP
4. OPERATION
FEATURES
Crops covered: - Food Crops,
Oilseeds , Commercial/
Horticulture Crops
States and Areas to be
covered: All states & U.Ts
Farmers to be covered: Loanee
( Compulsory) & Non- loanee
(Voluntary)
Risks covered: All Natural and
Man-made non-preventable risks.
Sum Insured: Loanee farmers –
Amount of Loan availed
Non- loanee farmers - 150% of
Avg. Yield
Premium Rates: Kharif
Crop – 2% of SI
Rabi Crop – 1.5% of SI
Comm./Horticulture - 5% of
SI
Premium Subsidy
Loss Assessment &
Indemnity
Corpus Fund: For CAT
Losses State & GOI
contributes on 50:50 basis
5. PROCESS FOR ISSUANCE
OF INSURERS TO FARMERS
Banks/Agri.
Societies/
Direct/ CSC
SLCCI/DLMC
AIC/ Approved
Insurance
Company
Geo – Fence/
Geo - Map
Risk
Assessment
Level of
Indemnity
Contribution to
Corpus
Issuance of
Policy
Endorsements
6. KEY ISSUES RELATED TO
FARMERS
Time Window Available for Coverage
Awareness about the Schemes
Documentation for Coverage of Farmers
Lack of adequate infrastructures to conduct CCEs
Adherence to seasonality discipline
7. CHALLENGES TO
INSURER
No Autonomous Authority
Limited Area of Underwriting
Pricing Challenges
Market Structure Challenges
Legislative Challenges
Weather Data
Claim Settlement
10. OUR PERSPECTIVE ON
AREAS OF IMPROVEMENT . . .
An establishment of Integrated DBS Platform.
Transparency through Digitalization.
Wider Area for Balanced Portfolio & Underwriting
Onus of responsibility to be maintained in 50:50 ratio
between Centre & State
Autonomous Authority to Pvt. Insurers
“Prevention is Better than Cure” strategy to be implemented
by Insurers.
11. THANK YOU !!
References:
1. IRDAI JOURNAL – Agriculture /Crop Insurance in India
2. III – S-09 – CROP INSURANCE
3. National Remote Sensing Centre - nrsc.gov.in
4. AIC of India Ltd. – aicofindia.com
5. 2018-2022 Global Agricultural Insurance Market Analysis
– reuters.com