Monsoon Insurance

IMPACT OF INDEX MONSOON INSURANCE IN INDIA Literature palingenesis AGRICULTURAL INSURANCE IN INDIA-A PERSPECTIVE By Dr. A. Am arnder Reddy Scientist ( outlandish scotch science) Indian shew of Pulses Research, com/about-kanpur/ class=ilgenKanpur-208024. Abstract Background the paper reviewed the innovative techniques in agricultural/ agrarian policy policy, which overcome some of the disadvantages of yield found group damages and suggests rainfall (weather) index indemnity as a better utility(a)/complement to the existing agricultural policy scheme.The weather (rainfall) index based policy is in any case more compatible with reinsurance practices worldwide, which make primary insurers to look at their local/regional fortunes by reinsuring themselves with international reinsures. Agriculture & outlandish Development Working Paper 9 Innovative Financial work for untaught India Monsoon- major powered Lending and Insurance for Smallholders Ulrich Hess The World Bank Ag ricultural and Rural Development Department Abstract This paper was prepared by Ulrich Hess.It draws extensively from authors work on weather insurance and arcadian finance in India and Morocco Townsend, and James Vickery, Barriers to Household Risk Management exhibit from India, Harvard Business School Working Paper, 2010, 09 (116). Abstract What types of households buy index insurance? What factors prevent the remaining households from participating? And does the purchase of index insurance offspring in more efficient risk taking? Rainfall index finger Insurance in India Daniel Stein Dissertation submitted to the Department of Economics for the item of Doctor of Philosophy in Economics atThe London School of Economics and Political Science September 2011 Abstract This thesis provides three whole kit which each contribute to understanding of the promising yet struggling commercialise for rainfall index insurance in India Findings of the study Post uphold of monsoon index in surance in stabilisation of farmers income. compare of growth between states having index monsoon insurance with the states without monsoon insurance general stinting development of Indian economy referable to index monsoon insurance acuteness of monsoon insurance in India. Purpose of the search (or rationale for the study)For the rural worthless in India, formal financial services would enable them to maximize returns on their surplus, smooth their consumption, and reduce their vulnerability to risk. However, their financial service needswhich implicate consumption credit and cash savings are seldom met due to systemic problems in the financial sector and monsoon risk. In 1991, a all-around(prenominal) household survey addressing rural access to finance revealed that barely one-sixth of rural households had loans from formal rural finance institutions (RFIs). Beyond credit, most of the rural poor also deprivation access to the banking system for savings.Farmers respond to the lack of formal financial services by turning to moneylenders reducing inputs in Farming over capitalizing and internalizing risk and/or by over diversifying their activities which leads to sub-optimal asset allocation. The combined effect of these coping strategies is a poverty trap. Smallholders cannot risk investiture in fixed capital or concentrating on the most economic activities and crops, because they cannot leverage the start-up capital and they face systemic risks that could wipe out their livelihoods at any point in time.The challenge for banks is to innovate a cheap way of reaching farmers and helping them better manage risk . Agricultural activity is inherently risky due to pest or disease-induced product failure, price volatility in commodities markets, or extreme weather events, much(prenominal) as droughts and floods. Smoothing consumption across years or seasons is a satisfying challenge for agrarian households in developing countries. Parchure (2002) esti mated that in India about 90% of variation in crop production levels is caused by variation in rainfall levels.In response to these problems, innovative index-based weather insurance was developed, in which the pay schemes are based on an exogenous publically observable index, namely local rainfall. This mitigates problems such as moral hazard and adverse pickax and eliminates the need for in-field assessments, lowering the cost of providing insurance. The purpose is to study the effect of insurance in the farmers income and how insurance helps in agriculture risk mitigation in Indian context.Coverage for crops and also schemes pertaining to monsoon insurance are also studied and its penetration in Indian market. Aim To study economic development due to monsoon insurance 1. Objectives To study the effect of insurance in the farmers income How insurance helps in agriculture risk mitigation in Indian context To study coverage for crops and also schemes pertaining to monsoon insuranc e To study Overall economic development of Indian economy due to index monsoon insurance To compare and study agricultural growth pre and post effect implications of monsoon insurance in Indian economyHypothesis (or key questions) Index monsoon insurance has overall created a positive impact on Indian economy. Research Methodology wooden leg 1 Literature Research A comprehensive review of the relevant literary productions including a computer assisted search will be Undertaken in order to develop an understanding of previous work relate to index monsoon insurance. Stage 2 descriptive question Review of literature in the field of agriculture and insurance to understand the growth of two the fields Stage 3 article researchEffect of insurance is studied by reviewing different articles and case studies related to monsoon insurance impact on specifies states which are more exposed to extreme climatic conditions Stage 4 statistics research A review of current as well as former(preno minal) statistics related to agricultural sector to analyse the trend Stage 5 Writing Up This stage involves writing up the content of the dissertation and should cover their chapters proposed Proposed Contents of the dissertation 1. Introduction 2. Agricultural sector and its challenges 3. Index monsoon insurance and its different schemes 4. Theoretical Framework of the study . Implications of monsoon index insurance 6. Interpretation and conclusion 7. Bibliography Work Plan/Diary First and moment week -Review of Literature Second and third week- case study research Next 2 weeks- analysing the statistics Next 4 weeks interpretation of statistics Next 2 weeks- collecting information from experts in the field of insurance Next 2 weeks writing up the case study Next 2 weeks ingress of soft copy for approval http//www. cirm. in/events/agriculture-index-insurance-conference-2012 -imp http//www. cgap. org/blog/lessons-india-weather-insurance-small-farmers