Experiment of yield-based insurance in Paddy crops
Pawan Guru-Stubble Burning issue
January 4, 2021
Vasant Devrao Fulbandhe, Dist – Chandrapur
January 6, 2021
The Problem:
Risk in production losses of farm crops due to any adverse physical conditions which are beyond control even after following all scientific agro practices leads to lower earnings.
The Product:
A unique yield-based insurance product, the construct which helps map out farmer practices against predefined milestones and the reimbursement is affected based on the output shortfall, if any. The purpose is to test the simplicity of the product and the effectiveness in reimbursement should the farmer not achieve the desired yields.
The Results:
Flood affected claim – Rs 12000 per acre
Advantage offered over traditional insurance
- Weather forecasts and alerts to the farmers
- Farm advisory services and technical assistance to farmers on reducing and managing losses.
- Compensation for the shortfall in the farm yield vis-à-vis the promised yield by WRMS.
