Rural Insurance Schemes -A study on Coverage and Implementation

Abstract

At present rural insurance schemes are available for human covers, livestock covers (cattle,sheep,goat,elephant, bullock etc.) bird covers (poultry, duck etc.),sub-animal covers (sericulture, freshwater fish, prawn etc.), plant covers (crop insurance) and other rural covers (well, biogasplant, pumpset, hut, tonga etc.). Most of the insurance companies which enter the arena of rural sector move with strategies like more Government support by way of premium subsidy, Group Insurance Schemes, banks and insurance tie-up in rural areas, economy in expenditure - reduction in agency commission and other operating expenditure, corporate tie-ups with banks for rural insurance to generate volumes, General Insurance- non-life covers trucks, tractors and power tillers, house and household articles and Health Insurance. While the strategy of the insurance companies is extending the scope of Crop Insurance Schemes to more crops and more areas, Crop Loss Calculation at village level instead of block level, Live- stock Insurance available for death - can be extended for theft. Rural people do not have regular income and hence flexible options to be given for premium payment for Life Insurance and bank loans for premium payment. This paper sought to focus on the problems and enlighten the insurance takers by giving the problems and operational modalities in question and answer pattern