The working group on risk management in
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- ‘Kissan Package Policy’
| 4.7. Package Insurance 4.7.1. Scope for Package Insurance Loss or damage to crops, is no doubt the major concern for the farmer. However, there are other assets of the farmer, such as livestock, agricultural implements, bullock carts, agricultural pump sets, stored grain, health, etc, whose loss is also an additional source of worry. Maintenance of these assets is vital, for good agricultural productivity. Composite package insurance i.e. a single insurance policy, covering all assets of the farmer, including crops, is ideal for farmers, as such a policy / scheme could meet all insurance requirements of a farmer, under one contract. Reasonable premium rates and providing composite insurance cover for all his needs at his doorstep, would go along way in ameliorating the situation, along with effective service, understanding and awareness. Public sector general insurance companies are marketing the ‘Kissan Package Policy’, covering as many as 15 different items. The list of items insured policy is: Section – Ia) Building & contents (Fire-allied perils and terrorism) Section – I (b) Contents (Burglary and Housebreaking) Section – II Farm produce & unprocessed grain Section – III Television set Section – IV Pedal cycle/cycle Rickshaw Section – V Personal Accident Section – VI Artisans, village, Cottage Industry, Biogas etc. Section – VII Cattle/Livestock Section – VIII Kissan Agricultural Pump set Section – IX Poultry/Duck Insurance Section – X Baggage Section – XI Animal Driven Cart Section – XII Honeybee Section – XIII Gun Insurance Section – XIV Mediclaim /Hospitalization Section – XV Agricultural Tractor These policies are sold to individual farmers, and losses are assessed on an individual basis. Therefore, farmers who need package insurance, can buy the Kissan Package Policy available in the market. These policies prima facie mark a paradigm shift, in insurance thought. First, they recognize that the farmer’s needs are of a holistic nature, requiring protection against multiple risks and multiple impact of these risks. The second, they address the fact that the farmer is part of an interchangeable environment. Where the dependence of many other allied societal and deprived members of his community, are related to his success e.g. artisans – cobblers, potters, mechanics, etc, and small traders. Especially in adverse years, the farmer is compelled to even shift to one of these vocations, or alternatively accept the undignified option of being a labourer. Worse, move to the cities, or take some more serious action, under the burden of penury and debt like suicide. Thus, such policies mark a significant step forward, in addressing the farmer’s needs in a more complete manner. |