ISSN (Online) - 2349-8846
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Agriculture Insurance in India

Promise, Pitfalls, and the Way Forward

Kushankur Dey (kushankur@ximb.ac.in) teaches at the Xavier School of Rural Management, Xavier University Bhubaneswar. Debasish Maitra (debasishm@iimidr.ac.in) teaches at Indian Institute of Management Indore.

The Pradhan Mantri Fasal Bima Yojana (during kharif 2016) and Weather-based Crop Insurance Scheme (kharif 2007–kharif 2014) are assessed by considering a set of performance indicators, namely average sum insured per insured cropped area, percentage of loanee and non-loanee farmers covered, average area insured per farmer, total claim ratio, farmer claim ratio, premium as percentage of sum insured, gross profit to insurance agencies. The study finds that claim payout can increase farmers’ coverage under PMFBY while subsidy and actuarial premium rate significantly impact farmers’ coverage for WBCIS. However, as recourse to complement the performance of two schemes, we propose a total insurance package like seed insurance through replanting guarantee programme, crop cycle insurance, prepaid insurance card, to name a few.

A preliminary version was submitted in the International Conference on Rural Management, organised by Xavier University Bhubaneswar, 23–24 November 2017.

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