Author(s):

Aniketa Horo

Abstract: Agriculture is directly dependent on the weather conditions, which can neither be controlled nor predicted precisely. This leaves the farmers with the option of precautionary action towards the vagaries of nature. Crop insurance is one such measure through which the farmers can transfer their risk onto a third party and can claim compensation in lieu of their crop failures. It was in 1972 that General Insurance Corporation (GIC) implemented an insurance scheme for Indian scenario, succeeding which there have been many crop insurance schemes till date. The present study was undertaken to thoroughly review the major insurance schemes that have been implemented in the country. The Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Schemes (RWBCIS) are the two schemes that are currently running across the nation. The paper discusses about the reasons to why the farmers are not willing to take up crop insurance, even when the government is allocating a huge amount of budget towards these schemes. The paper finally concludes that the insurance schemes are non-remunerative to farmers as they seek it as an investment rather than as a risk-mitigating option, outlining the shortcomings and suggesting improvements over the schemes.

Pages: 397-401  |  1509 Views  471 Downloads

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