Enhancing Crop Insurance in India
The broad structure of Modified National Agricultural Insurance Scheme (mNAIS), the main crop insurance program in India, is technically sound and appropriate in the context of India. The NAIS is based on an indexed approach, where average crop yie...
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| Format: | Other Agricultural Study |
| Language: | English |
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World Bank
2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333037_20110503001926 http://hdl.handle.net/10986/2748 |
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okr-10986-2748 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACTUAL YIELDS ADEQUATE PROTECTION AGRICULTURAL INSURANCE AGRICULTURAL INSURANCE SCHEME ALLOCATION ALLOWANCE AUDITS AVERAGE YIELDS BANK BANK LOANS BASIS RISK BENEFITS BORROWERS BUDGET CAPS CASH CROPS CATASTROPHIC RISKS CD CHECK CHECKS CLAIM PAYMENT CLAIM PAYMENTS CLIMATE COMMERCIAL CROPS CONTINGENT DEBT CONTINGENT LIABILITY CONTRACT CONTRACT DESIGN COST OF REINSURANCE COTTON COTTON YIELDS COVERAGE CREDIBILITY CREDIT CROP CROP INSURANCE CROP INSURANCE PRODUCT CROP INSURANCE PROGRAM CROP INSURANCE SCHEME CROP LOSS CROP PRODUCTION CROP YIELD CROP YIELDS CROPS CUSTODY DEFAULT DEFICIT DEMAND DISASTER DISASTER FINANCING DISASTER REDUCTION DROUGHT EQUITY FARM FARM MANAGEMENT FARMER FARMERS FARMING FARMS FIELD WORK FINANCE FINANCIAL INSTITUTIONS FINANCIAL SUPPORT FLOOR PRICE FOOD CROPS FOOD GRAINS FRAUD FUTURE GLOBAL CAPITAL GLOBAL CAPITAL MARKET GOOD GOVERNMENT FINANCING GOVERNMENT SUBSIDIES GOVERNMENT SUBSIDY GRAIN GROUNDNUT HARVESTING HOLDINGS HUMAN RESOURCES INCOME INDEMNITIES INDEMNITY INFORMATION INFORMATION SYSTEMS INSTRUMENT INSURABILITY INSURANCE CLAIMS INSURANCE COMPANY INSURANCE COVER INSURANCE PAYMENTS INSURANCE PAYOUT INSURANCE PENETRATION INSURANCE POLICY INSURANCE PORTFOLIO INSURANCE PREMIUM INSURANCE PRODUCT INSURANCE PRODUCTS INSURANCE RISK INSURANCE SCHEME INSURERS INTEREST INTERNATIONAL REINSURANCE INTERNATIONAL STANDARDS LABOR FORCE LANDSLIDES LENDERS LENDING LEVEL OF RISK LIABILITIES LOANS LOSS LOSS RATIO LOSSES MAIZE MARGINAL FARMERS MARKET MARKET PRICE MARKETS MITIGATION MOBILE PHONE MODELS MORAL HAZARD OILSEED CROPS OILSEEDS OPTION OPTIONS PADDY PARTIAL RISK PAYMENT HISTORY PAYMENT SYSTEM PENALTIES PLANNING POLICIES POLICY MAKERS POLITICAL ECONOMY PORTFOLIO RISK POST HARVEST LOSSES POVERTY PREMIUMS PRICE PRICING PROBABILITY DENSITY PRODUCE PROGRAMS PUBLIC INSURANCE RATES REINSURANCE CAPACITY REINSURANCE MARKETS REINSURERS REPLANTING REPORTS RESERVES REVENUE RISK ANALYSIS RISK ASSESSMENT RISK ASSESSMENTS RISK MANAGEMENT RISK POOLING RISK PROFILE RISK SHARING RISKS SCENARIOS SETTLEMENT SHARE SOWING SUSTAINABILITY TEA TECHNOLOGIES TECHNOLOGY TIMELY PAYMENT TIMELY PAYMENTS TRANSFER RISK TRANSPARENCY UNDERWRITING VALUE WHEAT YIELDS |
| spellingShingle |
ACTUAL YIELDS ADEQUATE PROTECTION AGRICULTURAL INSURANCE AGRICULTURAL INSURANCE SCHEME ALLOCATION ALLOWANCE AUDITS AVERAGE YIELDS BANK BANK LOANS BASIS RISK BENEFITS BORROWERS BUDGET CAPS CASH CROPS CATASTROPHIC RISKS CD CHECK CHECKS CLAIM PAYMENT CLAIM PAYMENTS CLIMATE COMMERCIAL CROPS CONTINGENT DEBT CONTINGENT LIABILITY CONTRACT CONTRACT DESIGN COST OF REINSURANCE COTTON COTTON YIELDS COVERAGE CREDIBILITY CREDIT CROP CROP INSURANCE CROP INSURANCE PRODUCT CROP INSURANCE PROGRAM CROP INSURANCE SCHEME CROP LOSS CROP PRODUCTION CROP YIELD CROP YIELDS CROPS CUSTODY DEFAULT DEFICIT DEMAND DISASTER DISASTER FINANCING DISASTER REDUCTION DROUGHT EQUITY FARM FARM MANAGEMENT FARMER FARMERS FARMING FARMS FIELD WORK FINANCE FINANCIAL INSTITUTIONS FINANCIAL SUPPORT FLOOR PRICE FOOD CROPS FOOD GRAINS FRAUD FUTURE GLOBAL CAPITAL GLOBAL CAPITAL MARKET GOOD GOVERNMENT FINANCING GOVERNMENT SUBSIDIES GOVERNMENT SUBSIDY GRAIN GROUNDNUT HARVESTING HOLDINGS HUMAN RESOURCES INCOME INDEMNITIES INDEMNITY INFORMATION INFORMATION SYSTEMS INSTRUMENT INSURABILITY INSURANCE CLAIMS INSURANCE COMPANY INSURANCE COVER INSURANCE PAYMENTS INSURANCE PAYOUT INSURANCE PENETRATION INSURANCE POLICY INSURANCE PORTFOLIO INSURANCE PREMIUM INSURANCE PRODUCT INSURANCE PRODUCTS INSURANCE RISK INSURANCE SCHEME INSURERS INTEREST INTERNATIONAL REINSURANCE INTERNATIONAL STANDARDS LABOR FORCE LANDSLIDES LENDERS LENDING LEVEL OF RISK LIABILITIES LOANS LOSS LOSS RATIO LOSSES MAIZE MARGINAL FARMERS MARKET MARKET PRICE MARKETS MITIGATION MOBILE PHONE MODELS MORAL HAZARD OILSEED CROPS OILSEEDS OPTION OPTIONS PADDY PARTIAL RISK PAYMENT HISTORY PAYMENT SYSTEM PENALTIES PLANNING POLICIES POLICY MAKERS POLITICAL ECONOMY PORTFOLIO RISK POST HARVEST LOSSES POVERTY PREMIUMS PRICE PRICING PROBABILITY DENSITY PRODUCE PROGRAMS PUBLIC INSURANCE RATES REINSURANCE CAPACITY REINSURANCE MARKETS REINSURERS REPLANTING REPORTS RESERVES REVENUE RISK ANALYSIS RISK ASSESSMENT RISK ASSESSMENTS RISK MANAGEMENT RISK POOLING RISK PROFILE RISK SHARING RISKS SCENARIOS SETTLEMENT SHARE SOWING SUSTAINABILITY TEA TECHNOLOGIES TECHNOLOGY TIMELY PAYMENT TIMELY PAYMENTS TRANSFER RISK TRANSPARENCY UNDERWRITING VALUE WHEAT YIELDS World Bank Enhancing Crop Insurance in India |
| geographic_facet |
South Asia South Asia Asia India |
| description |
The broad structure of Modified National
Agricultural Insurance Scheme (mNAIS), the main crop
insurance program in India, is technically sound and
appropriate in the context of India. The NAIS is based on an
indexed approach, where average crop yield of an insurance
unit, or IU, (i.e., block) is the index used. The insurance
is mandatory for all farmers that borrow from financial
institutions, though insurance cover is also available to
non-borrowers. The actual yield of the insured crop (as
measured by crop cutting experiments) in the IU is compared
to the threshold yield. If the former is lower than the
latter, all insured farmers in the IU are eligible for the
same rate of indemnity payout. Individual crop insurance
will have been prohibitively expensive, or even impossible,
in a country such as India with so many small and marginal
farms. Further, the method of using an 'area based
approach' has several other merits and, most
importantly, it mitigates moral hazard and adverse
selection. This report offers detailed analysis of a number
of technical and operational issues which should be
addressed if mNAIS is to be implemented. GOI is to be
complemented on its bold vision of the future of agriculture
insurance through modifying NAIS, an action which, if well
implemented, has the potential for significant economic and
political economy gains. The policy note World Bank (2010)
supported this vision and offered specific policy
recommendations for mNAIS, with reference to the Joint Group
report (2004). This technical report is intended as a
complement to World Bank (2010) and also to the previous
technical report World Bank (2007a), by offering detailed
technical analysis of a number of issues that will be
critical to the success of mNAIS. |
| format |
Economic & Sector Work :: Other Agricultural Study |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Enhancing Crop Insurance in India |
| title_short |
Enhancing Crop Insurance in India |
| title_full |
Enhancing Crop Insurance in India |
| title_fullStr |
Enhancing Crop Insurance in India |
| title_full_unstemmed |
Enhancing Crop Insurance in India |
| title_sort |
enhancing crop insurance in india |
| publisher |
World Bank |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333037_20110503001926 http://hdl.handle.net/10986/2748 |
| _version_ |
1764385888555499520 |
| spelling |
okr-10986-27482021-04-23T14:02:04Z Enhancing Crop Insurance in India World Bank ACTUAL YIELDS ADEQUATE PROTECTION AGRICULTURAL INSURANCE AGRICULTURAL INSURANCE SCHEME ALLOCATION ALLOWANCE AUDITS AVERAGE YIELDS BANK BANK LOANS BASIS RISK BENEFITS BORROWERS BUDGET CAPS CASH CROPS CATASTROPHIC RISKS CD CHECK CHECKS CLAIM PAYMENT CLAIM PAYMENTS CLIMATE COMMERCIAL CROPS CONTINGENT DEBT CONTINGENT LIABILITY CONTRACT CONTRACT DESIGN COST OF REINSURANCE COTTON COTTON YIELDS COVERAGE CREDIBILITY CREDIT CROP CROP INSURANCE CROP INSURANCE PRODUCT CROP INSURANCE PROGRAM CROP INSURANCE SCHEME CROP LOSS CROP PRODUCTION CROP YIELD CROP YIELDS CROPS CUSTODY DEFAULT DEFICIT DEMAND DISASTER DISASTER FINANCING DISASTER REDUCTION DROUGHT EQUITY FARM FARM MANAGEMENT FARMER FARMERS FARMING FARMS FIELD WORK FINANCE FINANCIAL INSTITUTIONS FINANCIAL SUPPORT FLOOR PRICE FOOD CROPS FOOD GRAINS FRAUD FUTURE GLOBAL CAPITAL GLOBAL CAPITAL MARKET GOOD GOVERNMENT FINANCING GOVERNMENT SUBSIDIES GOVERNMENT SUBSIDY GRAIN GROUNDNUT HARVESTING HOLDINGS HUMAN RESOURCES INCOME INDEMNITIES INDEMNITY INFORMATION INFORMATION SYSTEMS INSTRUMENT INSURABILITY INSURANCE CLAIMS INSURANCE COMPANY INSURANCE COVER INSURANCE PAYMENTS INSURANCE PAYOUT INSURANCE PENETRATION INSURANCE POLICY INSURANCE PORTFOLIO INSURANCE PREMIUM INSURANCE PRODUCT INSURANCE PRODUCTS INSURANCE RISK INSURANCE SCHEME INSURERS INTEREST INTERNATIONAL REINSURANCE INTERNATIONAL STANDARDS LABOR FORCE LANDSLIDES LENDERS LENDING LEVEL OF RISK LIABILITIES LOANS LOSS LOSS RATIO LOSSES MAIZE MARGINAL FARMERS MARKET MARKET PRICE MARKETS MITIGATION MOBILE PHONE MODELS MORAL HAZARD OILSEED CROPS OILSEEDS OPTION OPTIONS PADDY PARTIAL RISK PAYMENT HISTORY PAYMENT SYSTEM PENALTIES PLANNING POLICIES POLICY MAKERS POLITICAL ECONOMY PORTFOLIO RISK POST HARVEST LOSSES POVERTY PREMIUMS PRICE PRICING PROBABILITY DENSITY PRODUCE PROGRAMS PUBLIC INSURANCE RATES REINSURANCE CAPACITY REINSURANCE MARKETS REINSURERS REPLANTING REPORTS RESERVES REVENUE RISK ANALYSIS RISK ASSESSMENT RISK ASSESSMENTS RISK MANAGEMENT RISK POOLING RISK PROFILE RISK SHARING RISKS SCENARIOS SETTLEMENT SHARE SOWING SUSTAINABILITY TEA TECHNOLOGIES TECHNOLOGY TIMELY PAYMENT TIMELY PAYMENTS TRANSFER RISK TRANSPARENCY UNDERWRITING VALUE WHEAT YIELDS The broad structure of Modified National Agricultural Insurance Scheme (mNAIS), the main crop insurance program in India, is technically sound and appropriate in the context of India. The NAIS is based on an indexed approach, where average crop yield of an insurance unit, or IU, (i.e., block) is the index used. The insurance is mandatory for all farmers that borrow from financial institutions, though insurance cover is also available to non-borrowers. The actual yield of the insured crop (as measured by crop cutting experiments) in the IU is compared to the threshold yield. If the former is lower than the latter, all insured farmers in the IU are eligible for the same rate of indemnity payout. Individual crop insurance will have been prohibitively expensive, or even impossible, in a country such as India with so many small and marginal farms. Further, the method of using an 'area based approach' has several other merits and, most importantly, it mitigates moral hazard and adverse selection. This report offers detailed analysis of a number of technical and operational issues which should be addressed if mNAIS is to be implemented. GOI is to be complemented on its bold vision of the future of agriculture insurance through modifying NAIS, an action which, if well implemented, has the potential for significant economic and political economy gains. The policy note World Bank (2010) supported this vision and offered specific policy recommendations for mNAIS, with reference to the Joint Group report (2004). This technical report is intended as a complement to World Bank (2010) and also to the previous technical report World Bank (2007a), by offering detailed technical analysis of a number of issues that will be critical to the success of mNAIS. 2012-03-19T10:12:32Z 2012-03-19T10:12:32Z 2011-04-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333037_20110503001926 http://hdl.handle.net/10986/2748 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank Economic & Sector Work :: Other Agricultural Study South Asia South Asia Asia India |