4.4.1. Advantages of Weather Insurance over traditional crop insurance:
There are many shortcomings in traditional crop insurance. The important ones area) moral hazards (b) adverse selection (c) multiple agencies and their huge administrative cost (d) lack of reliable methodology for estimating and reporting crop yields (e) delays in settlement of claims (f) program limited to growers (farmers. A majority of these limitations, are overcome through weather insurance.
A survey was conducted by ICRISAT in 2005 in the pilot areas of Mahabubnagar district of
Andhra Pradesh, to understand from farmers, the reasons for buying weather insurance. The detailed responses are produced in Table below:
56 Share with your friends: |
