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Crop Insurance: a study with farmers’ awareness and satisfaction

Author: 
Dr. A. Selvaraj
Subject Area: 
Social Sciences and Humanities
Abstract: 

Crop Insurance makes up the loss or damage to growing crops result in from a variety of causes such as hail or droughts, frost, flood and disease. The cultivators pay a premium and Protection is given to them on the same basis as in other insurance. Crop Insurance can play extremely important and supporting role in increasing the flow of institutional credit to the agriculture sector. Agricultural Insurance will largely solve the problem of collateral security requirement by banks while extending the loans. In case of Crop failure banks will receive the payment directly from the insurance companies. Crop insurance, thus, promotes flow of institutional credit to the agriculture sector which in turn induces farmers to adopt new technology. The agricultural sector is still untapped and is also growing significantly owing to promotional policies initiated by the government in these countries. The rural sector will offer wide scope for insurance companies particularly, to local companies which have better knowledge of realties in rural marketing. In this context, this study is an attempt to find out the answers to the following questions: 1. What is the awareness level of the farmers about crop insurance schemes? 2. What is the satisfaction level of the farmers about crop insurance schemes?

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