Rural Insurance : A Boon to Indian Agriculture

Agriculture is a major livelihood for the people of India. A large section of the Indian economy is still dependent on the agriculture section. India is ranked among top five countries with highest agricultural productivity and it plays a significant role in contributing to the GDP of the country. Agriculture is demographically the broadest economic sector and plays a significant role in the overall socio-economic fabric of India.

However agriculture productivity in India severely depends on the climate of the country. And knowing the unpredictable climate India has, agriculture has to bear the burden of such catastrophic disasters that takes place. As a result the whole economy of the country gets shaken up, like last year lack of rain had hit many areas in the western part of the country which affected the livelihood of many farmers who lost their savings and daily bread in the process. Price rise of agrarian products was a constant worry among the common civilian population of the country resulting in fall in demand and rise to black market practices such as hoarding. The farmers bore the major brunt of tough time when the agriculture sector suffered.

To protect the farmers from the above situation and also the economy of the country, many government institutions and insurance companies have introduced the rural insurance policy. They provide a comprehensive insurance policy which cover the various adverse effects of climate changes such as the losses to the crop occurring due to varying weather conditions such as temperature, wind speed, rainfall, humidity.

The rural insurance policy covers the following areas under it:Cost of input – Covers the diminished agricultural output/yield resulting due to deviation from optimum weather requirement of a crop within a specific geographical location and specified time periodIncreased operational costs of agricultural or non-agricultural economic activity resulting from deviation of Observed Weather index from Strike index

However only a certain group of people can apply for this rural insurance policy in India:FarmersBanksFinancial institutions / companies extending credit facility for agricultural/ non agricultural seasonal operations, whose repayments are affected by weather conditions

What are the benefits of the policy rural insurance India?
There are many benefits to rural insurance policy in India which farmers who apply for it can get. The insurer is well protected and covered from any climatic disasters that can affect the agriculture sector on the whole.

Listed below are some of the benefits to consider in case of rural insurance India policy:Benefits on death:In the event of death, the nominated from the family is the beneficiary of the insurance policy plus the any added bonus that comes with the insurance over the period of time.Protect farmers:Farmers and rural banks are definitely given a big financial cover in times of uncertainties. So if any sort of calamity takes place, farmers can rely on the policy to provide them the basic support, so that they can continue farming without any constraint. As a result the agriculture economy doesn’t suffer.Family Solutions:Many insurance companies provide policies that protects not only the produce of agriculture, but also the family of the farmer. The entire family can derive the benefit of the rural insurance policy and allows the farmers to accomplish there target of produce without any trouble.

Rural insurance policy is one of the basic covers which every farmer and rural banks should have access to, so that in time so in times of necessary one can definitely use it and the produce of agriculture isn’t affected. The features and benefits of this policy are some of the most common type of solutions which every rural insurance policy provides to the agricultural population of the country.

Sahil Doshi is a finance writer and has been writing on topics related to Insurance. He offers original cases studies, stats and solutions through his writings. In this article he focuses over benefits, Including by a rural insurance in India.

Share This Post

Post Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.