This insurance is meant for farmers and agricultural producers as it protects them against the loss of crops due to floods, drought, extreme weather conditions or loss of revenue due to price fluctuation in the market. It also covers pre-sowing and post-harvest losses due to natural calamities like floods or rain deficit.
Types Of Crop Insurance
- 1) Multiple Peril Crop Insurance: This provides financial coverage to the farmers to overcome the losses due to weather like flood, drought etc.
- 2) Crop Revenue Coverage: This covers not just the crop yield but also the revenue generated from the total yield. If there is any drop in crop price, then this loss is covered by crop insurance.
How Crop Insurance Functions?
- 1) By submitting the required documents and paying the premium regularly, the farmer can get an insurance cover on crops, oil seeds and annual commercial crops.
- 2) Sum assured is based on analyzing different factors like type of crop, location and years of calamity that has hit the area and historical yield data.
- 3) If there is any crop loss due to any calamity then insured has to inform the insurance company within 72 hours of calamity to get the risk cover and benefit from the crop insurance.
- 4) Claim is calculated taken into account the risk factors like weather and yield per hectare.
- 1) This insurance can be availed by the farmers of India provided that they are growing the notified crops in that area.
- 2) Legal land documents should be provided by the farmers to avail crop insurance.
Documents Required For Crop Insurance
- 1) Land registration papers
- 2) Duly completed form for insurance claim
- 3) Land ownership documents
- 4) Aadhar card
- 5) PAN card or any other personal identification proof
- 6) Bank account details
- 7) Sowing declaration
- 8) Claim reimbursement form
How Crop Insurance Helps?
- 1) It provides financial support to the farmers to cover the loss and damage of crops that arise due to natural calamities like flood or drought.
- 2) Tax exemption is given to the farmers on the premium that is being paid for the purchase of the crop insurance policy.
- 3) Farmers remain free from stress of taking loan from the lenders on a higher interest rate.
- 4) As the personal income of farmers increase they get the encouragement to introduce new tools and machines for day to day farming.
- 5) Farmers can pay the loan easily with the reimbursement received from crop insurance thus improving the economy of our country.