Cont...Green insurance
AGRICULTURE
HAS ALWAYS BEEN A RISKY BUSINESS. UNLIKE THE INDUSTRIAL SECTOR IT
IS SUBJECT TO THE VAGARIES OF NATURE
health
care and spread of diseases however cause huge losses to farmers.
Insecurity in the households with respect to personal assets is yet
another risk factor that affects the rural populace. Furthermore risks
faced by farmers in rural areas cause so much suffering and distress
to them that some even resort to the extreme step of killing themselves,
and many such incidents have been on the rise of late. Apart from
human consideration to address the various type of risks faced by
a large number of cultivators and those engaged in agriculture and
rural activities, the other side of the problem should be seen as
a challenge and converted to a favourable business opportunity.
RURAL UNDERSTANDING
To understand
the prospects for insurance companies in rural India, it is quite
important to understand the requirements of India's villagers. Therefore
we need to study their daily lives and peculiar needs with occupational
structures. Many villagers are into varied professions— from
farming to dairy, construction to shop keeping and so on. More often
they also have side businesses or auxiliary sources of income. A typical
farmer is totally at the mercy of the monsoons. He is always obsessed
with queries like what would happen in case of floods, drought or
crop failure. For any marginal farmer surviving on a small piece of
land, the consequences of the above factors are catastrophic. Furthermore
how would he repay his loans? With the WTO regulations all set to
be enforced what would be the fate of a small farmer left to the multitude
of market forces? The situation is compounded by the absence of civic
amenities and proper guidance by concerned authorities like the State
Department of Agriculture, for example. Thus, there exists a great
deal of uncertainty in his profession. Like what would happen if the
cattle were faced with an epidemic? This is where insurance has a
great role to play.
AGRICULTURE CROP INSURANCE-OBJECTIVES
Agriculture crop
insurance itself cannot increase productivity or be a source of financing
but it can certainly play a role in enhancing both. Agricultural insurance
schemes are more complex than other types of insurance. There are
some limitations and inherent constraints that prevent a rapid growth
of insurance business in rural areas. Considering crop insurance as
a risk mitigation measure for agriculture production, the following
objectives may be assigned:
