role of government and insurance companies to bring

8/12/2019 Role of Government and Insurance Companies to Bring

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Crop insurance is purchased by agricultural producers, including farmers,

ranchers, and others to protect themselves against either the loss of their

crops due to natural disasters, such as hail, drought, and floods, or the loss

of revenue due to declines in the prices of agricultural . Governments and insurance companies play an important role in providing

farmer awareness and education programs and in supporting the marketing

and promotion programs.


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Crop insurance spreads the crop losses over space and time, provides socialsecurity to the farmers, helps in maintaining their dignity, offers self-help,encourages large investments in agriculture for improving crop yield andincreasing agricultural production.

SchemesAt present four crop Insurance schemes namely National Agricultural

Insurance Scheme (NAIS), Pilot Modified National Agricultural InsuranceScheme (MNAIS), Pilot Weather Based Crop Insurance Scheme (WBCIS)And Pilot Coconut Palm Insurance Scheme (CPIS) is being implemented in

the country.


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The frequency and severity of crop losses of individual farmers cannot be predicted, the predictability and severity of loss frequency is substantiallyincreased when exposures of a large number of farmers are affected bynatural disasters. This is the basic theory of crop insurance.

Most of our farmers operate on a scale of production and income barelyabove the subsistence level. They have little margin for error, for theirsurvival is at stake. Consequently, even if they have heard of new and more

productive agricultural technologies, they may be reluctant to use it owingto the uncertainties Involved in taking on higher levels of debt andexpenditure. With crop insurance, a certain income is guaranteed to thefarmer even lf the crop fails.


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To ensure availability of all relevant information about insurance products

to prospective customers in a lucid manner.

To set customer desks in all regional officers and to spread awareness

about the same.

To guide the customers about the procedures and status of the insurance

scheme.

Officials of the Department of Agriculture used the mass media to createawareness among the farmers on these schemes.


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United India Insurance in association with Agriculture Insurance Company

of India has launched an internet service catering to the crop insuranceneeds of farmers in remote areas.

The state government had launched special drive in this regard during the

past couple of agriculture seasons. And this campaign also received

overwhelming response from the farmers. The government is making

efforts to popularize the scheme through its rural network.

Under National Agriculture Insurance Scheme, Agriculture insurance

company of India offers yield-based and weather-based crop insurance

program to farmers.


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Di sseminate the in formation thr ough, Government departments

Agricultural universitiesResearch institutes and NGOsMass media instruments like newspapers, televisions etc.

Non-moneti zed str ategies such as, Crop diversificationWater harvesting structureGrowing perennial less water- consuming treesDrilling new bore-wells

Growing rain fed cropsFarm diversification and so on


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I nsur ance companies which are providing crop insur ance

Agriculture Insurance Company of India Limited

ICICI Lombard General Insurance Ltd.

Reliance General Insurance Company Limited.

Royal Sandarac Alliance insurance company ltd

Tata AIG General Insurance Company Limited,

Cholamandalam MS General Insurance Company Ltd

HDFC ERGO General Insurance Company Limited

Future Generali India Insurance Company Limited

L&T General Insurance Company Limited


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The role of insurance companies to bring awareness on crop insurance

The major source of any information for both the insured and uninsured is

television. But when it comes to insurance the major source is insurance

agents.

A statement of the boards, councils, committees and other bodies

consisting of two or more persons constituted as its part or for the purpose

of its advice, and as to whether meetings of those boards, councils,

committees and other bodies are open to the public, or the minutes of such

meetings are accessible for public.


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Source of awareness

Educational mater ialsThese materials are either distributed directly or via the Internet, insuredinstitutions, and consumer advice bureaus.

Pr int and broadcast-media coverage

This reflects the public-service view that the print and broadcast media areexcellent communication vehicles for disseminating information to a broadaudience.

Guest l ectures and presentati ons These may be done in coordination with professional groups andassociations. Potential audiences include, for example, consumer groups,civic associations, employers and unions, financial journalists, and tradeassociations. Members of such groups can often reach even broaderaudiences as a result of personal relationships.


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Publi c hotli ne/helpli ne This service can help to provide customers with answers to their questionsor to refer them to the proper individual(s) who can help them with

particular issues.Web site

A well-designed Web site can be used to complement the information and personal service.

Central government and various state governments are providing subsidiesOn crop insurance but still very few farmers are availing this facility becausethere is lack of awareness among them about the benefits of crop insurance .


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Despite various schemes launched from time to time in the country,agricultural insurance has served very limited purposes. The coveragein terms of area, number of farmers and value of agricultural output isvery small, payment of indemnity based on the area approach misses

the affected farmers outside the compensated area, and most of theschemes are not viable. This requires renewed efforts by governmentin terms of designing appropriate mechanisms and providingawareness for agricultural insurance. Providing similar help to private

sector insurers would help in increasing insurance coverage andimproving the viability of insurance schemes over time.

role of government and insurance companies to bring

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