Rainfall insurance in India is important for stable agricultural growth and risk management. It provides coverage for farmers when rainfall is below average levels, threatening crop yields. The PRF rainfall index insurance program in the US uses a rainfall index for grids of about 8 square miles to determine insurance payouts. Farmers choose coverage levels and insured acres. Payouts are calculated based on the final rainfall index value compared to the trigger index value. This allows for timely payments without needing individual crop yield information.