Home » INSURANCE » Definition Of Crop Insurance And Types of Crop Insurance

Definition Of Crop Insurance And Types of Crop Insurance

Crop Insurance – Farmers’ applied crops can be damaged by various natural and man-made disasters in such a way that the cottage traders may become completely destitute. Floods, droughts, cyclones, tidal waves, unfavorable weather, rage, insects, fires, lightning, theft, robbery, looting, war are all natural and unnatural causes of crops and are often destroyed or destroyed. At such a loss, the farmer may become absolutely destitute and even bankrupt.

Crop insurance has been introduced to protect farmers from crop and grain damage due to unnatural reasons. Therefore, the contract that the insured enters into with the insurer to get compensation for the financial loss of the crop is called grain insurance.

Crop insurance was first introduced in Germany.

Below are the views of some scholars on grain insurance:

According to Professor M.N. Mishra, “The insurance charges and claims in respect of crops insured is crop insurance.” That is, the insurance that is used to meet the claims of the insured crop is called grain insurance.

Professor I.s. According to Kanwar, “Crop insurance is a device under which the insurance company agrees to indemnity the loss caused due to the occurrence of uncertain events, to the standing crops of the fermers.” That is, grain insurance is a contract by which the insurance company compensates the farmer for unforeseen risks.

The above definition can be found in the following features of crop insurance through discussion:

  • Crop insurance is a type of compensation agreement.
  • Various natural and unnaturalrisks are also insured in the contract.
  • It is a protective measure against crop and grain damage.
  • Such insurance guarantees farmers a stable income.
  • It helps farmers to achieve their self-reliance by bearing losses.
  • The main purpose of this insurance is to compensate the adverse effects of nature on agriculture financially.

In conclusion, the insurance contract that is executed in return for the premium fixed to avoid the risk of crop damage due to rains, droughts, storms, waterlogging, pest infestation, etc., is called crop insurance.

Types of Crop Insurance:

Types of Crop Insurance Grain insurance is an insurance contract that is performed at a premium to avoid the risk of crop failure due to rains, droughts, storms, waterlogging, pests, etc. Therefore, three types of crop insurance have been introduced to protect the crop from various risks.

The types of crop insurance discussed below are:

Specific risk crop insurance;

The case in which insurance policy is issued to protect the crop from certain risks is called fixed risk crop insurance. This type of insurance is done against the risk arising from a specific hazard, such as: flood or hail or drought, etc. A specific cause is clearly mentioned in the insurance policy. In that case, compensation is given only if the crop is damaged due to the mentioned reasons, not otherwise. |

Combined risk crop insurance:

An insurance policy that covers two or more specific risks under one policy is called crop insurance of combined risk. In other words, in this insurance policy, many of the risks are identified as the highest risk risks and brought together in one insurance policy. For example, such insurance is taken to protect the crop from fire, lightning and hail.

All risk crop insurance:

In case an insurance policy is issued to protect the crop from all the risks associated with grain production, it is called crop insurance for all risks. Such risks include grains, livestock, farmers’ capital and agricultural machinery. In 1939, the United States introduced crop insurance for wheat at all risks, covering all types of risks through this insurance, hence it is called crop insurance for all risks.

In conclusion, such insurance is very important to protect the interests of farmers. Through such insurance, farmers get compensation for their financial loss from the insurer.