Crop Insurance
The government of India has initiated a market-based insurance program
with actuarially sound premium rates. The private insurance companies are
actively involved and bringing improved schemes. These insurance schemes are
thought to provide benefits to the farming community with the faster settlement
of claims and more equitable allocation of subsidies. The maximum premium
payable by the farmers are 2%, 1.5%, and 5% for all kharif food
and oilseeds crops; rabi food and oilseeds crops; and for
annual commercial/horticultural crops, respectively.