Agricultural Insurance scheme in India


In India, agricultural insurance schemes are implemented to provide financial protection to farmers against losses incurred due to natural calamities, crop failures, pests, diseases, and adverse weather conditions. These schemes aim to mitigate the risks faced by farmers and ensure their financial stability. Some of the prominent agricultural insurance schemes in India include:

  1. Pradhan Mantri Fasal Bima Yojana (PMFBY): Launched in 2016, PMFBY is a crop insurance scheme aimed at providing comprehensive coverage and financial support to farmers in the event of crop loss or damage due to natural disasters, pests, or diseases. It covers all farmers, including tenant farmers and sharecroppers, and offers premium subsidies to make insurance affordable. The scheme also utilizes technology such as satellite imagery for accurate assessment of crop damage.

  2. Weather-Based Crop Insurance Scheme (WBCIS): WBCIS is an insurance scheme that provides coverage against weather-related risks such as drought, excess rainfall, temperature fluctuations, and other adverse weather conditions. The insurance payouts are determined based on predefined weather parameters and their impact on crop yields. WBCIS aims to address the limitations of traditional crop insurance schemes by offering more precise risk assessment and faster claim settlements.

  3. Restructured Weather-Based Crop Insurance Scheme (RWBCIS): RWBCIS is an enhanced version of the WBCIS, which incorporates improvements such as wider coverage, simplified procedures, and better risk management practices. It covers a broader range of crops and geographical areas and aims to increase the adoption of weather-based insurance among farmers.

  4. Unified Package Insurance Scheme (UPIS): UPIS is a comprehensive insurance scheme that combines coverage for crops, assets, and personal accidents under a single policy. It provides farmers with holistic protection against various risks, including crop losses, damage to agricultural assets (such as tractors and pumps), and accidents leading to disability or death.

These agricultural insurance schemes are implemented by various government agencies such as the Ministry of Agriculture and Farmers Welfare, in collaboration with insurance companies and state governments. They play a crucial role in safeguarding the livelihoods of farmers, promoting agricultural resilience, and supporting the growth of the agricultural sector in India.


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