Peril-Based Crop Insurance in India: Smart Protection for Your Rabi Crops
Introduction
Farmers face multiple risks during the Rabi season, from droughts to pest attacks. Peril-based crop insurance offers targeted protection against these threats, ensuring financial stability. This article explains how peril-based policies work, their benefits, and why they are crucial for Indian farmers.
Traditional crop insurance schemes offer broad protection, but many farmers are now leaning towards peril-based crop insurance, which is more targeted and flexible, aligning better with their specific needs.
This blog explores what peril-based crop insurance entails, how it differs from other crop insurance coverage types, and why it’s gaining popularity among farmers.
Quick Answer:
Peril-based crop insurance for Rabi crops covers specific risks such as frost, drought, and hailstorms, helping farmers reduce losses from extreme weather events.
What Is Peril-Based Crop Insurance and How Does It Work?
Peril-based crop insurance is a type of crop insurance that provides financial protection against specific risks or “perils” that may damage or destroy crops. These perils can include natural calamities like floods, hailstorms, earthquakes, or animal attacks on crops. Unlike broader insurance schemes, peril-based insurance allows farmers to choose coverage based on the most probable threats to their region or crop type.
Why Should Rabi Farmers Choose Peril-Based Insurance?
What are the different types of crop insurance in India?
1. Weather Index Insurance
2. Yield-Based Insurance
3. Peril-Based Insurance
What are the benefits of peril-based crop insurance for farmers?
1. Customised Coverage
2. Faster Claims Processing
3. Better Risk Management
How do farmers file claims under peril-based crop insurance?
The process is relatively straightforward:
- Risk Assessment: Farmers identify the most likely threats to their crops based on geography, crop type, weather pattern, and historical data.
- Policy Selection: They choose a policy that covers one or more specific perils.
- Premium Payment: Premiums are calculated based on the risk level and coverage amount.
- Monitoring: Insurance providers monitor weather conditions.
- Claim Filing: If the insured peril occurs, farmers file a claim with supporting evidence.How Peril-Based Insurance Works farmers file a claim with supporting evidence through a digital claim filing process
- Payout: After verification, claim amount is disbursed to help cover losses.
Many insurers like Kshema General Insurance offer digital platforms for policy management and claim tracking, making the process more transparent and farmer friendly.
Kshema’s Peril-Based Crop Insurance Solutions: Kshema Sukriti & Kshema Prakriti
Kshema General Insurance offers two flagship crop insurance products — Kshema Sukriti and Kshema Prakriti — designed to meet the diverse needs of Indian farmers.
Kshema Sukriti
Kshema Sukriti offers customizable insurance for frost and hail damage, allowing farmers to select only the perils most relevant to their region.This flexibility makes Sukriti ideal for farmers who understand their local agro-climatic conditions and want customisable peril-based crop insurance without paying for additional coverage.
Kshema Prakriti
Kshema Prakriti, on the other hand, is a comprehensive crop insurance solution that covers crops against all those 8 perils, including animal attacks. It’s designed for farmers who prefer all-round protection and peace of mind throughout the crop cycle.
Both products reflect Kshema’s commitment to empowering farmers with affordable and region-specific insurance options that align with modern agricultural challenges.
Government Support and Schemes
The Government of India supports crop insurance through government schemes like:
- Pradhan Mantri Fasal Bima Yojana (PMFBY): Offers yield-based coverage with subsidised premiums. Learn more about coverage, eligibility, and premium subsidies on the official PMFBY portal.
- Restructured Weather-Based Crop Insurance Scheme (RWBCIS): Focuses on weather index insurance for specific crops and regions.
Considerations for Peril-Based Crop Insurance
- Limited Coverage: It may not protect against all possible risks.
- Awareness Gap: Many farmers may be unaware of the options available or may lack guidance on customising their policies.
- Data Dependency: Accurate risk assessment requires reliable historical and meteorological data, which may not be available in all regions.
Final Thoughts
In today’s uncertain farming environment, crop insurance is not just a safety net—it’s a but a strategic tool. Peril-based crop insurance offers farmers the ability to protect their livelihoods against the most relevant threats, without the burden of high premiums or complex policies.
By understanding the different crop insurance coverage types and choosing wisely, farmers can safeguard their investments, stabilise their income and build a more secure future. Whether you’re growing wheat in Punjab or mustard in Rajasthan, smart insurance choices can make all the difference.
Frequently Asked Questions About Peril-Based Crop Insurance for Indian Farmers
1. What is peril-based crop insurance?
It’s a type of insurance that covers specific risks like floods, hailstorms, or animal attacks, allowing farmers to choose coverage based on local threats.
2. How does peril-based insurance differ from comprehensive insurance?
Peril-based insurance targets specific threats, while comprehensive covers all risks.
