Changing Course of Crop Insurance with Climate Change

Abstract

culture is significant to the economic sector as it contributes 19% to GDP and provides the primary means of subsistence for 58% of the population. Climate change has caused widespread impacts, losses, and damage to the environment and human systems. There is a significant connection between agricultural output and climate change. Indian farmers’ productivity and economic gains from agriculture have never been stable. Climate catastrophes have caused huge losses to the farmers making it very important to the economic sector in recent decades. Insurance is considered an effective mechanism for encouraging farmers to improve productivity and adaptability. In India, the Pradhan Mantri Fasal Bima Yojana and Restructured Weather-Based Crop Insurance are the two current crop insurance schemes. The crop insurance focuses primarily on main staple crops like rice and wheat and also horticulture crops. An attempt is made in this paper to evaluate the performance of Pradhan Mantri Fasal Bima Yojana and Weather Based Crop Insurance Scheme (WBCIS) in India with a particular focus on area insured and claims settlement ratio. The standard of parameters of working insurance policy keeps changing year after year the indemnity levels do not quantify the actual loss. A specific analysis was made to present the performance of the claims settlement ratio. The conclusion of this paper discusses the necessity to increase the claim settlement ratio after giving an outline of the Kharif and Rabi seasons.