Agriculture Insurance

Weather Based Crop Insurance Scheme (WBCIS) aims to mitigate the hardship of the insured farmers against the likelihood of financial loss on account of anticipated crop loss resulting from adverse weather conditions relating to rainfall, temperature, wind, humidity etc. WBCIS uses weather parameters as “proxy‟ for crop yields in compensating the cultivators for deemed crop losses. Payout structures are developed to the extent of losses deemed to have been suffered using the weather triggers.

Benefits of Agricultural Insurance

  • Provides financial support to farmers thus, covers crop loss and damage arising out of unforeseen events
  • Tax exemption on the premium paid by the farmers against the purchase of the crop insurance policy
  • Farmers would get peace of mind as they don’t need to take loans from private lenders at higher interest rates
  • Encourages farmers to adopt modern and innovative agriculture practices that further increase their personal income
  • Economy of the country will get strengthened as farmers can repay loans with the reimbursement received from the crop insurance

Types Of Crop Insurance

Crop insurance is categorised into 3 types:

Multiple Peril Crop Insurance:

Provides financial coverage to manage risks arising from weather-related losses, such as a flood, drought, etc.

Actual Production History:

Covers losses due to wind, hail, insects, etc. Also includes coverage for lower yield and compensates for the difference between the estimate and the real.

Crop Revenue Coverage:

This is based not only on the crop yield but on the total revenue generated from this yield. In case of a drop in crop price, the difference is covered by this type of crop insurance.

What is Covered?

Following major weather perils, which are deemed to cause “Adverse Weather Incidence”, leading to crop loss, shall be covered under the scheme:

  • Rainfall – Deficit Rainfall, Excess rainfall, Unseasonal Rainfall, Rainy days, Dry-spell, Dry days b) Temperature– High temperature (heat), Low temperature
  • Relative Humidity
  • Wind Speed
  • A combination of the above
  • Hailstorm or cloud-burst may also be covered as Add-on/Index-Plus products for those farmers who have already taken normal coverage under WBCIS.

The perils listed above are only indicative and not exhaustive and any addition / deletion may be considered by State Govt. in consultation with insurance companies based on availability of relevant data

What is not covered?

An insurance provider is not liable to pay if the loss takes place due to the following conditions:

  • Losses arising out of war, nuclear risks
  • Malicious damage and other preventable risk arising out of negligence by the farmer or the manpower employed by the farmer
  • Burning of the crop by order of a public authority
  • Damage caused by birds or animals
  • Ionizing radiations or contamination by nuclear waste
  • Harvested crops bundled and heaped before threshing

How to Get Claims?

  • Duly completed claim form
  • Land Registration Papers or Land Patta Number
  • Land Ownership Documents
  • Aadhar Card
  • Personal Identification Proof like ration card, PAN Card, and/or voter card
  • Bank Account Details
  • Sowing Declaration
  • Weather Report from the meteorological department or automated weather stations.