Agricultural Insurance in India:A Perspective
AbstractThe ongoing National Agricultural Insurance Scheme (NAIS) along with experimental income insurance and weather insurance, is a good step forward to insure risk of millions of farmers whose livelihood depends on the pattern and distribution of monsoon rain in India. NAIS is based on area-yield approach and is suffering from low penetration and adverse selection with consequent high claim to premium ratio. With this backdrop, the paper reviews the innovative techniques in agricultural/rural insurance, which overcome some of the disadvantages of the above insurance and which advocate simple rainfall index insurance as a better alternative to the existing agricultural insurance scheme. The rainfall insurance is in practice in many countries for years and has been very simple to understand by a common farmer. It is put into practice with minimum existing resources with very little administrative and overhead costs. It also covers agricultural laborers and non-farm workers whose income is affected adversely by failure of rainfall and it is a very effective mechanism to increase insurance penetration ratio. The rainfall insurance is also more compatible with reinsurance practices, which make primary insurers cover their local/regional risks in catastrophic events by pooling their resources with reinsurance. The reinsurance agents can also effectively transfer their risks by issuing catastrophic bond/options like instruments in stock exchanges (NSE and BSE), as our stock markets are relatively well-developed and it may effectively fit into the portfolios of some of the fund managers and hedge funds.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by IUP Publications in its journal The IUP Journal of Agricultural Economics.
Volume (Year): I (2004)
Issue (Month): 3 (October)
Contact details of provider:
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (G R K Murty).
If references are entirely missing, you can add them using this form.