Crop and Livestock Insurance:: Insurance of Rice, Cow, Goat

Fasal Bima
Crop Insurance

SUBJECTInsurance of Rice, Wheat, Tomato, Brinjal. Insurance of Livestock Animals. Insurance of Farm Machinery.

CATEGORY– Educational and Informational

INDEX

S. N.MAIN TOPICS
1.INTRODUCTION
2.Crop Insurance
3.Livestock Insurance
4.List of Agriculture Insurance Company
5.Conclusion

1. INTRODUCTION

(Definition and Introduction for Insurance)

Definitions

  1. Insurance is a device for the transfer of risks of individual entities to an insurer, who agrees, for a consideration (called the premium), to assume to a specified extent losses suffered by the insured.- Dr. W. A. Dinsdale.
  2. Insurance is a contract by which the one party, in consideration of a price paid to him adequate to the risk, becomes security to the other that he shall not suffer loss, damage, or prejudice by the happening of the perils specified to certain things which may be exposed to them- Justice Lawrence.
  3. Insurance is a contract whereby one person, called the “insurer” undertakes, in return for the agreed consideration, called the premium, to pay to another person called the assured a sum of money or its equivalent, on the happening of a specified event. – E. R. Hardy.
  4. The payment of a sum of money by one person to another on the understanding that in specified circumstances the second person will make good any loss suffered by the first. – Dictionary of Commerce.

(The above definitions, 1-4th, are originally given by the different AuthorsREFERENCE NO. 1-2.)

So, the insurance of crop and livestock is a beneficial process adopted by the farmers and plant growers. All farmers have to go through some compulsory steps.

The process of crop and livestock insurance is not different from each other except insurance agencies.

Both, the live crops and the animals are applied for insurance for their complete life cycle. However, the amount of insurance can only be claimed when animal dies (in the case of farm animals), and due to unwanted climate and weather e. g., storm, persistent raining, regular attack of pests, ups and downs in monthly temperature (criteria are fixed).

2. Crop Insurance

What is Crop Insurance?

Crop insurance includes insurance of various field and horticultural crops from an insurance company. It covers minimum and maximum loss done by various factors. Standing crop can be destroyed by bad weather and abundant pests attack etc. A farmer can bear crop loss because he receives money from the company.

Structure for Crop Insurance

  • Insurer (Insurance Company)- Insurer can be a private company of public sector.
  • Mediator (Private and Government Organizations)- here, mediator means the person or organization which play role of engaging both the farmers and insurance company.
  • Who can apply for insurance (Farmers, Growers)– small, marginal farmers and big farmers, all can apply for crop insurance.
  • Field crops, plantation crops– Field crop example- rice, wheat, maize, sugarcane etc.
  • Premium amount (compulsory)– It is the amount of cash which is required for insurance.
Image Just for Example (Image quality is low): Premium amount/ha. for different Crops for different ecological area (27) in India
Here,
1. Name of Insurer– hidden.
2. Name of Mediator– hidden.
टमाटर = Tomato.
बैंगन = Brinjal.
फूलगोभी = Cauliflower.
पत्तागोभी = Cabbage.
प्याज = Onion.

बिमित राशि = Premium Amount (shown in INR).
प्रति हैैैक्ट. =Per Hectare.

Structure for Livestock Insurance

  • Insurer (Insurance company)– Insurer can be a private company of public sector.
  • Mediator- here, mediator means the person or organization which play role of engaging both the farmers and insurance company.
  • Who can apply for insurance?-(farmers, growers).
  • Livestock– farm animals.
  • Premium amount (compulsory)– It is the amount of cash which is required for insurance.

Why Crop Insurance?

  1. To cover crop loss.
  2. To overcome the fear of crop failure.
  3. To get subsidy by the government (sometimes).

How it works?

Step 1: Farmer has to insure his standing crops paying premium amount.

Step 2: Crops need to fail.

Step 3: Farmer has to for money.

Objectives of Crop Insurance

Objective of governments

  • Extension of awareness.
  • To benefit farmers through insurance.
  • To support farmers, financially.

Objective of growers

  • To minimize economical risk.
  • To get sum money as recovery.
  • Cultivation of crop in more land area with minimum risk.

Importance of Crop Insurance

  • farmer can afford loss.
  • Increase in area and production of field and vegetable crops.

Procedure of Crop Insurance

Where to Apply for Crop Insurance?

  • Governmental department e. g., department of agriculture and horticulture.
  • Official website of insurance company.

How to Apply for Crop Insurance?

Required Documents
  • Personal identity card.
  • Bank passbook.
  • Land record.
  • Photos of crop.
Procedure
    • Go to regional government department e. g., department of agriculture or horticulture or attend any camp organized by the local administrative.
    • Contact with field officers.
    • then apply for it.
    • Go to the official website of insurance company.
    • Fill online application form.

How to Claim for Crop Insurance (if crop fails)?

  1. Collect required data.
    • Photographs e. g., insect, disease.
    • Numerical data e. g., fluctuation in climatic conditions.
  2. Go to office.
  3. Submit claim.
  4. Follow ‘Right To Information’ in case you don’t receive payment or if they don’t pay you.

3. Livestock Insurance

What is Livestock Insurance?

Livestock insurance includes insurance of farm animals e. g., cow, goat, sheep, pig, poultry etc., with the help of animal husbandry department. It covers economical loss when a flock or herd is done by natural enemies.

Why Livestock Insurance?

  1. To cover capital loss.
  2. To overcome the fear of cattle mortality.
  3. To get subsidy by the government (sometimes).

Objectives of Crop Insurance

Same as in crop insurance.

Importance of Livestock Insurance

Same as in crop insurance.

Who Can Apply for Insurance?

Anyone can apply.

Procedure of Livestock Insurance

Where to Apply for Livestock Insurance?

  • Governmental department e. g., department of animal husbandry..
  • Official website of insurance company.

How to Apply for Livestock Insurance?

Required Documents
  • Personal identity card.
  • Bank passbook.
  • Photos of dead flocks, herd.
Procedure
    • Go to regional government department e. g., department of animal husbandry or attend any camp organized by the local administrative.
    • Contact with field officers.
    • then apply for it.
    • Go to the official website of insurance company.
    • Fill online application form.

4. List of Agriculture Insurance Company

  1. India
    • AIC of India, New Delhi.
    • Bajaj Allianz.
  2. USA
    • FCIC.
    • AAIC, Schaumburg, Illinois.
  3. Philippines
    • Philippine Crop Insurance Corporation.

5. Conclusion: Conditions to Apply for The Claim

  1. Crop Failure
  2. Climate
  3. Insect-pest attack etc.
  4. Lethal diseases.

-By Harish Manik


REFERENCES

  1. Mishra, M. N. (2001). Insurance, Principles and Practice. PP- 3-4.
  2. Reigel and Miller (1963). Insurance, Principles & Practice. Page – 29.


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admin
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1. Author and Content Writer. 2. Agriculture Consultant and Farmer's Trainer. 3. Agriculture Entrepreneur.
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