Agriculture insurance

Agriculture insurance

Insurance is the help to people by helping them with the exchange of premium the assurer gives. There are more than millions of insurance companies worldwide. As agriculture insurance is mostly related with crops it is also said as crop insurance. We can easily know that agriculture insurance is for farmers or agricultural producers. Agriculture insurance is much unknown to people here in Nepal, farmers should be given knowledge about it. Agriculture insurance was 1^st authorized in 1930s by congress.  Agriculture insurance or crop insurance is mostly important for the agricultural countries whose most of the population works as a farmer or growers. The unwanted natural calamities like drought, hail or heavy storm that destroys the crops or the rate of its growth tend to go farmers into huge loss. So to avoid these kinds of risk insurance policy is required for the farmer

Agriculture insurance done by the farmers has to pay certain amount of premium every month or according to the contract. The farmers can claim a certain amount of money when their crops get destroyed by the drought or flood. A farmer or grower tends to prevent themselves from the risk of damage of their crops though it is by natural disaster, by the insects or bugs or loss by the lowered price of the crops in the market. There are two type of crops insurance; one is crop-yield insurance and the other one is crop-revenue insurance, where the crop yield insurance is again categorized into crop-hail insurance and multi-peril crop insurance.

 Crop-hail insurance is done only by private insurance companies as hail occurs in a limited places and its loss is less. France and Germany are the countries who provided crop-hail insurance to the farmers 1820s. The other one is multi-peril crop insurance as it does not cover limited risk the insurance is offered by the government to the people. Multi-peril crop insurance offers insurance to the hail, excessive rain, drought as a whole and also looks up for the crops which are damaged by insects or bacteria. This insurance looks up for large scale of agricultural aspects. Crop-revenue insurance is given to the farmers according the revenues from the crops. The insurance company agrees to give the insurance policy to the farmers only after looking at their income they gain from the crops. Calculating their future average price of the crops the revenue is estimated.