What Does Farm Insurance Cover?

Everybody knows about insurance. Everyone knows that there is no certainty of life. Anything can happen at any phase of life. Hence, we rely on insurance for safety. There are many insurance types, including health insurance, travel insurance, life insurance, etc. You can choose these covers for additional protection to your family and save for the future.

Farmers are the source of food for every nation. They struggle to grow crops and feed the public. A farm insurance policy is equally essential for them. The crop they cultivate with all their efforts, money, and sacrifices is also a source of income. The Indian Government introduced this insurance plan many years ago and has brought many amendments to date.

Natural disasters affect the poor farmers in developing countries. With an insurance policy, their crops remain protected against natural calamity, extreme weather, or revenue loss due to price fluctuations in the agricultural market. A man who struggles using his plough gets the assurance of returns during a calamity.

All farmers, including sharecroppers and tenants growing the notified crops in the declared areas, are eligible for coverage. However, they should have insurable interest for the notified or insured crops. They need to submit the Land Possession Certificate (LPC) or applicable contract permitted by the concerned State Government.

The insured person cannot sow or plant due to deficit rainfall or adverse seasonal conditions. The insurance scheme covers standing crops affected by drought, dry spells, flood, inundation, pests and diseases, landslides, natural fire and lightning, storm, hailstorm, cyclone, typhoon, tempest, hurricane, and tornado.

The post-harvest cover is available only up to a maximum period of two weeks from crop harvest. If the crop gets affected by cyclones and unseasonal rains after harvest, the insured gets compensation. The insurance policy also covers loss or damage resulting from identified localised risks of hailstorm, landslide, and inundation affecting isolated farms in the area.

Farmers can also buy tractor insurance to protect their tractor against damage, theft, and natural calamities and disasters. It also covers other farming equipment such as reapers, threshers, chaff cutters, salvage corps vehicles, lawn mowers, etc., along with the personal accident cover to you and your other family members who may use the car.

This policy is compulsory for all farmers according to the Motor Vehicles Act. It provides coverage for the driver’s accident, additional legal liabilities towards paid driver or employee, bi-fuel kit, No Claim Bonus protection, and return to the invoice. It protects you against any legal liability arising out of the vehicle’s use, towards third parties occurring on bodily injury, on the death of a person, and any damage caused to third party property.

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Created on Apr 25th 2021 22:34. Viewed 342 times.

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