aDepartment of Agricultural Economics, College of Agriculture, Gulbarga-585 109, Karnataka
bExtension Education and Socio-Economics Section, Central Institute for Research on Goats, Makhdoom - 281 122, Uttar Pradesh
cDepartment of Agricultural Economics, ASPEE College of Horticulture and Forestry, NAU, Navsari, Gujarat
dDepartment of Economics, Gulbarga University Gulbarga, Karnataka
Online published on 24 November, 2014.
The study has compared that Modified National Agricultural Insurance Scheme (MNAIS) and Weather Based Crop Insurance Scheme (WBCIS) products in Karnataka. It has revealed that since implementation of WBCIS in 2007, the Hyderabad-Karnataka region has accounted for 66 per cent of the state total insured area, whereas, MNAIS has accounted for 46 per cent of the state area. The total number of farmers insured under MNAIS were 1.33 lakh covering approximately 1.37 lakh ha of land for an insurance value of around 1545 crore, whereas MNAIS product was opted by 11.67 lakh farmers covering an area of 21.69 lakh ha with insurance value of 34034 crore. For one rupee premium, farmers have received 4.25–5.83 in WBCIS and 10.00–11.00 in MNAIS products. The claims under the MNAIS are given to smaller proportion (only 29%) of beneficiaries and higher per-farmer claims, indicating highly skewed distribution of benefits. However, 80 per cent of the insured farmers received claims under WBCIS. The WBCIS product has tremendous scope to emerge as sustainable crop insurance product because of faster claim settlement, higher transparency and lower assessment cost.
Insurance product, MNAIS, WBCIS, L-C ratio, compensation, sustainability, Karnataka
