Crop Insurance

Crop Insurance is a sizeable yield-based policy expected to compensate farmers’ losses resulting due to production difficulties. It includes pre-sowing and post-harvest losses due to cyclonic rains and rainfall deficiency. These losses guide to a reduction in crop yield, thus, changing the income of farmers. The Pradhan Mantri Fasal Bima Yojana (PMFBY) was launched in 2016 and replaced all India’s overall yield insurance plans.

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Types of Crop Insurance

There is Crop insurance is categorized into three types:

1. Multiple Risk Crop Insurance: Gives financial coverage to control risks arising from weather-related losses, such as floods, droughts & many more.
2. Original Production History: Case’s losses due to wind, hail, insects, etc. It also adds coverage for lower yield and repayments for the difference between the estimate and the real.
3. Crop Revenue Coverage: This is based not just on the crop yield but also on this yield’s total income. During a drop in crop price, the difference is covered by this type of crop insurance.

Eligibility Criteria

1. Compulsory Component: If producers have applied for Seasonal Agriculture Operations (SAO) loan from the financial institution for the mentioned crops, they will be covered urgently.
2. Voluntary Component: Crop Insurance is an opportunity for these farmers who fall under non-loanee farmers. If they wish to, people can register and avail benefits from the government scheme.

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Crop Insurance Coverage of Risks and Exclusions:

1. Localised calamities: It comprises minor accidents and risks like hailstorm, landslide affecting isolated farms in the notified area.
2. Sowing/Planting/Germination risk: Any problem in planting or planting because of deficit rainfall or unfavourable seasonal conditions.
3. Post-harvest losses: It includes losses for up to a maximum period of two weeks from harvesting.
4. Sowing to Harvesting (Standing crop loss):Comprehensive risk insurance to cover yield losses because of non-preventable risks, such as dry spells, flood, hailstorm, cyclone, typhoon.

Claim Process

There are two situations in which the claim can be processed –

1. Wide Spread Calamities and
2. Local Calamities,

During the first case, the company would work out the claim settlement once the government puts forth original yield data. The company would immediately settle the claim with the guarantee without any implication from the policyholder.

While the case of a local mishap, the insured (i.e., the farmer) must intimate the company no later than 24 hours of the event, this can either be done via the concerned financial institution or directly.

Documents Required for Claim Process

Below are mentioned some of the critical documents that the farmers require to make claims under crop insurance:

• Aadhar Card
• Personal Identification Proof-like ration card, PAN Card, and voter card duly completed claim form.
• Land Registration Papers or Land Patta Number
• Bank Account Details
• Land Ownership Documents
• Sowing Declaration
• Claim Reimbursement Form or the Application Form

Best of Luck…!!!