INDIA – Agriculture insurance open to private sector

The Indian government has merged various schemes under agriculture insurance and is allowing private sector companies to enter the agriculture insurance market. The new measures, which took effect from November 2013, are expected to make the experience of insuring crops farmer-friendly, according to the Ministry of Agriculture. 

The Indian government has merged the Pilot Weather Based Crop Insurance Scheme (WBCIS), Pilot Modified National Agricultural Insurance Scheme (MNAIS) and Pilot Coconut Palm Insurance Scheme (CPIS) into the National Crop Insurance Programme (NCIP). 

Private insurance companies with adequate infrastructure and experience will be allowed to implement NCIP besides the Agriculture Insurance Company of India (AIC). This is expected to ease the burden on AIC, which is also the world’s largest crop insurer, and give farmers a wider choice. The government says that a state-level coordination committee on crop insurance will be responsible for monitoring of the scheme along with insurance companies.