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.

1. CROP INSURANCE:
INSIGHT & PROSPECTS
MADE BY:-
RAJAT DESHMUKH

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

8. TECHNOLOGICAL
INTERVENTIONS AND WAY
FORWARD . . .
• DILRMP – Link to Aadhar
• CCE – THROUGH MOBILE APP

9. • RST - NDVI
• TNAU – RIICE – SAR – Sentinel 1A

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