The working group on risk management in
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| 4.9.2. Marketing Efforts: The non-loanee farmers for whom the scheme is voluntary, and who also constitute the majority, continue to show extremely low participation, often exhibiting extreme manifestation of adverse selection and moral hazard. Presently their participation in NAIS is barely 3%, which again is contributed only by a few states, viz. Karnataka, Maharashtra, Orissa and Jharkhand. Amongst the important reasons quoted for low participation, are the lack of awareness and understanding, and the effort required by the farmer to go to a bank to submit insurance proposal. Quite often, these farmers are turned away by Banks because of their preoccupation with routine activities. Many a times they simply do not know of the proposal. Therefore, making available insurance at the doorstep of farmer / village through rural agents / micro insurance agents, with extensive awareness building programs, will be the key to improve the participation of non-loanee farmers. The implementing agency, will have to immediately put in place a proper insurance delivery mechanism, such as rural agents, micro insurance agents, krishi bima sansthans, etc, blended with an active awareness communication drive, to reach out to non-loanee farmers. |