Essay on New Insurance Products

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Agriculture Insurance in India : Issues and Concern
Dr. Madhurima Lall Harnam Singh Rashmi Tripathi Ours is an agrarian country with two third of its one billion population depends on agriculture for their livelihood. Agriculture also contributes approximately 18% of GDP. The Indian business cycle is influenced by the crop pattern that mainly depends on the vagaries of nature; every flood or drought has its own impact on the Indian economy. Agri-business encompasses whole lot of activities of agriculture sector under one umbrella, like integration of production, processing and marketing. The process starts at the product level and reaches out to the final consumers through vertical integration. Agribusiness favors Indian farmers in every possible way be it policy, climate and several other advantages points that India inherently possess in production. So in this paper we would like to trace the problems related with agriculture insurance agencies, farmers and entrepreneurs, to identify risk in agribusiness, to know performance of Agriculture insurance schemes in India, role of agriculture insurance schemes in protecting farmers from agricultural variability, what's the major problems in crop insurance and National Agriculture insurance (NAIS), and how to cope up with those problems. In this study, we have tried to find out the rise in accuracy and timeliness of crop estimation methods. Introduction: India is an agriculture oriented country where main dominant form of occupation is agriculture. Indian society with two third of its population depend upon agriculture for their livelihood. It contributes 18% of GDP (Gross Domestic Product) approximately. India has got second rank in the world for its agriculture and farm products. But it is not so easy for the farmers of India to earn income from agriculture. Indian agri-business is synonymous with risk and uncertainty because the agriculture in India depends upon the natural factors, i.e. adverse weather conditions, flood, draught, peril etc. Uncertainty of nature leads the farmers to various agriculture related problems. Low productivity, less income and high loans taken for agriculture are forcing the farmers of India to commit suicide. They are living a stressful life even after giving others an unstressful life by fulfilling their most wanted need in the form of farm products. In agriculture, agribusiness is a generic term for the various businesses involved in food production, including farming and contract farming, seed supply, agrichemicals, farm machinery, wholesale and distribution, processing, marketing, and retail sales The process starts at the product level and reaches out to the final consumers through vertical integration. Agribusiness favors Indian farmers in every possible way be it policy, climate and several other advantages points that India inherently possess in production. Therefore, to cope up with these agro-problems, a risk management tool "Agriculture Insurance" is launched for the farmers. Economic growth and agricultural growth are directly related to each other. This tool helps in stabilization of farm production and income of the farmers. It helps in optimal allocation and utilization of resources in the production process. Agriculture or crop insurance has assumed importance with large scale damage caused due to pest attacks, crop diseases and vagaries of weather. The objective is to provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests & diseases. The list of crops being covered for insurance differs from state to state. Generally quite a few Kharif and Rabi season crops are covered. These crops are insured at the community/block/gram panchayat levels. Agriculture insurance schemes are of immense help to farmers, providing them with financial security. Agriculture insurance for farmers helps greatly in reducing risk horizontally across the...
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