Crop insurance in Assam: Determinants and Problems

This study has looked at the factors affecting area insured and the problems faced by farmers and insurance agencies. A random sample of 120 farmers was selected from the Nalbari and Barpeta districts of Assam. The regression analysis has revealed that factors such as rice area, age and education of farmers, information source, etc. influence farmers’ participation in crop insurance and their awareness level. This study has revealed that with more rice area, bigger farm-size and more sources of information, the farmers become more aware about crop insurance in the study area. The major problems reported by the farmers were delay in claim settlement, less crops coverage, high premium rate, lack of facility and area approach. According to insurance agencies, the problems related to insurance were levels of indemnity, calculation of guaranteed yield, on-account settlement of claims, lack of awareness, need of training, poverty and illiteracy of farmers. A well-planned and well-executed crop insurance scheme needs proper co-ordination as well as integration of government and farmers to achieve the desired goal. The study has concluded that by developing an appropriate and farmer-friendly crop insurance scheme, the government can help the farmers in hard times and thereby ensure a better socio-economic development of the state.