Page 234 - India Insurance Report 2023- BIMTECH

222 India Insurance Report - Series II

satellites offer some relief from cloudiness, their data are harder to interpret, limiting their use
for monitoring and modelling crop health and crop yields.

The latest generation of geostationary satellites offers data that are very similar to widely used polar
orbiting sensors such as MODIS. However, the 10-minute frequency at which geostationary satellites
observe the Earth provides several opportunities for observing extreme weather and collecting cloud-
free observations that could be used in crop health and crop yield modelling.
It is conceivable that one can put together a library of 10-minute geostationary data for the entire
India that could be mined for extreme weather events such as hailstorms, dust storms, windstorms,
and extreme cold/hot temperatures. One can track the locations, spatial extent, and duration of
such events, ultimately leading to better handling of mid-season perils.

A practical and ongoing example of extensive use of satellite data for implementing Crop Insurance Solutions
in India

Bangla Shasya Bima (BSB) – a Transformative 100% Tech-based Insurance for West Bengal

The scheme, the first of its kind in the country, is being implemented from the 2020 crop season in
West Bengal and has been running quite successfully during the last three years, covering nine seasons
which has witnessed three cyclones, heavy unseasonal rains, severe dry spell in the early part of rice
season, etc. A transformative crop insurance solution replacing the conventional ‘Area-yield
approach’ with the ‘Area- crop performance/crop health approach’, a 100% technology-driven
solution. A composite index called the Crop Health Factor (CHF) represents crop performance by
incorporating multiple physical and biophysical parameters related to crop health. It is a quantitative
measure of crop health and overall performance during the season.

CHF deviation from the past year’s average CHF values for each Insurance Unit (village and village
panchayats) decides the crop loss and insurance pay-out in the current season. All the widespread major
perils that affect an Insurance Unit, viz. prevented sowing, failed germination or transplanting, mid-
season adversities, and end-of-the-crop seasons risks due to hailstorms, floods, drought/ dry spells and
cyclones have been accounted for in the crop performance.

Advantages of such technology-based crop insurance solutions are manifold, viz. elimination of
moral hazard of local human influence, a substantial reduction in the cost of insurance, transparency
and objectivity in the process, faster payment of claims, etc.

As soon as the CHF for the current season is ready, the same is shared on the dashboard for access
of all the stakeholders, including State administration at State and District level. In case of any localized
calamity, the ground truthing is intensified, and a geo-referenced crop surveillance report is obtained.
Specific protocols are devised to account for such localized losses.

Tech-based solutions are transparent, free from manual intervention and very quick. Under the
BSB Scheme, farmers of West Bengal received claims directly in their bank account within 3 to 6 weeks
of losses, and it has happened several times over the last three years, particularly after the cyclones when
the farmers needed the pay-outs quickly for an alternative economic activity.