Page 35 - Insurance Times July 2023

Crop Insurance

- A journey

witnessed Bisheshwari Singh

Crop Insurance is based on statistical tools, administration machinery down to the grass root level,
technology, satellite imagery services, insurance intellect and many other highly specialized
expertise being used in crop insurance in the country making it more effective and the largest
crop scheme in the world in terms of farmers enrolment, having millions of applications every year
and amongst the top 3 in terms of premium received.

was thinking about how since the time I got involved From there, I have witnessed the crop insurance's transition
I in crop insurance, I have seen it change as the scheme from mNAISto Pradhan Mantri Fasal Bima Yojana(PMFBY) in
moved from strength to strength and thought of
2016, further revisions, improvement in the form of
revamping the operational guidelines and other changes till
writing an article on the same. It all started in the
year 2007 when I had brief exposure to weather-based date. As a part of the reinsurance programs, as an
Insurance at IFFCO - Tokio in Madhya Pradesh as the Regional implementer of the scheme in various states of the country,
Head there. Most of it was collected from individual insured as a committee member of various committees with the
and was settled based on IMD-based weather insurance. The administrators, as a stakeholder of the scheme, as a service
premium collection was a major challenge for us as we used provider towards enrolment of farmers or co-observing the
the channels like district cooperative banks, who were our yield estimation or attending to the individual farmer
business partners.As I moved back to Delhi with IFFCO- Tokio losses,looking back I have acted in many roles in crop
in 2008, this brief experience was temporarily curtailed. insurance. This realisation aroused in me a desire to read and
further understand crop insurance's journey in our country.
Cut to 2014, and at Universal Sompo, a decision at the highest
level was taken that we will empanel our company as a Crop Insurance is based on statistical tools, administration
partner in the crop insurance scheme and offer crop insurance machinery down to the grass root level, technology, satellite
with the Ministry of Agriculture through various states based imagery services, insurance intellect and many other highly
on the tender. The Ministry of Agriculture, based on the specialized expertise being used in crop insurance in the
presentation and our inclination to participate in crop country making it more effective and the largest crop scheme
insurance, considered us for empanelment. They had in the world in terms of farmers enrolment, having millions of
empanelled certain insurance companies earlier and USGI applications every year and amongst the top 3 in terms of
joined that list. Agriculture Insurance Corporation(AIC) has premium received.
been a master at crop insurance since then, but the other
Government companies were not implementing crop Crop insurance in India date back to the early 70s. The crop
insurance at this point. insurance was introduced in 1972-73 to provide insurance

The Insurance Times July 2023 31