The Crop Insurance

NEXT

This Insurance is generally taken by the farmers and other agricultural produce who wants to protect them against the risk of loss which may arise in the event of destruction of the crops due to natural disasters such as droughts, floods, hail etc. This policy is a significant boon to the farmer community. This policy protects the interests of the farmers even in the event of reduction in the prices of their agricultural produce. The crop Insurance is basically divided into two broad categories. They are as follows :

• Crop yield Insurance
• Crop Revenue Insurance

The crop yield insurance is further classified into two types they are

1. Crop Hail Insurance 
2. Multi peril crop Insurance

The Crop Hail Insurance is normally available from the local Private Insurance Companies mainly due to the fact that hail is a normal peril and this mainly occurs in a limited space and losses are not usually big enough to wipe out the reserves of the insurance companies.

The Multi Peril Crop Insurance is an insurance policy which covers more than one risk. This policy usually protects the insured against the risk of losses due to hail, drought, floods due to excessive rains and some other perils which are mentioned in the policy.

The Crop Revenue Insurance: In the United States OF America this Crop revenue Insurance is called as Crop Revenue Coverage because this policy guarntes the policy holders a minimum amount which their produce is going to fetch. This amount is arrived after taking into consideration lot of diverse factors and after some complex calculations.

This Crop Insurance is a huge blessing for the farmers and they help the farmers to avoid losses and is of great Utility to the Society in General and To the Farming Community in Particular.