Professor V.M. Dandekar
Professor V.M. Dandekar as the ‘father of crop insurance in India’ suggested an alternate ‘Homogenous Area approach’ for crop insurance in mid -70’s. Based on this approach General Insurance Corporation of India (GIC) introduced a Pilot Crop Insurance Scheme (PCIS) from 1979.

WHO has developed the concept of crop insurance?

Shri J.S. Chakravarthi
As far back as 1915 in the pre-independence era, Shri J.S. Chakravarthi of Mysore State had proposed a rain insurance scheme for the farmers with view to insuring them against drought. His scheme was based on, what is referred to today as the area approach.

What is called crop insurance?

Crop insurance is purchased by agricultural producers, and subsidized by the federal government, to protect against either the loss of their crops due to natural disasters, such as hail, drought, and floods, or the loss of revenue due to declines in the prices of agricultural commodities.

How is crop insurance funded?

The U.S. crop insurance program is funded by taxpayers, regulated by USDA’s Risk Management Agency (RMA), but sold and serviced by private business. There are economic and historical reasons why the program is neither all public nor all private.

How many farmers use crop insurance?

Nowadays, many farmers buy crop insurance. According to the USDA, about 83 percent of U.S. crop acreage is insured under the federal program. In 2017, the FCIP insured more than 311 million acres of farmland. The participating insurers issued more than 1.1 million crop insurance policies.

When was the first crop insurance program created?

In 1938, Congress passed the Federal Crop Insurance Act, which established the first Federal Crop Insurance Program. These early efforts were not particularly successful due to high program costs and low participation rates among farmers.

Why is it important for farmers to have crop insurance?

Farmers who take crop insurance protect their crop from unforeseen setbacks. Considering that majority of the farmers livelihood is dependent on the quality and quantity of the yield they produce, crop insurance aids in fighting poverty. (i) Stability in Income: It protects the farmers against losses caused by crop failure.

How does the federal Crop Insurance Corporation work?

The Federal Crop Insurance Corporation reinsures the companies by absorbing some of the losses of the program when indemnities exceed total premiums. Several revenue insurance products are available on major crops as a form of additional coverage.

Which is the largest crop insurance company in India?

In India a multiperil crop insurance called National Agriculture Insurance Scheme (NAIS) was implemented. This scheme is being implemented by Agriculture Insurance Company of India, an Indian government owned company.