Since a large part of India still lives in villages & a significant component of the nation’s GDP comes from agriculture- policies covering various crops, agricultural machinery & other property of a farmer &/or a rural household are covered in these policies. Looking at the importance of offering a cover for this sector - Agriculture Insurance Co. has been specifically established. Other General Insurers also offer this policy.
Agricultural sector is one of the most prone to vagaries of nature. To take just one factor- too little or too much rain plays havoc with the economic sustainability of farms. Government of India has been actively involved in formulating and improving the standard Crop Insurance policy cover called Pradhan Mantri Fasal Bima Yojana (PMFBY).
Farm machinery & other assets are covered under similar standard policies for vehicles/machinery.
The standard policy for major crops is compulsory for all farmers availing farm loans from financial institutions. it is optional for the farmers who have not availed agriculture loans.
Other policies for covering various assets is an optional cover.
