In India, the concept of agriculture insurance

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Crop insurance in India accounts for less than 2% of income generated from agriculture in a year. This, despite the fact that more than 60% of India’s labour force is dependent on agriculture, and the remaining two sectors — industry and services — derive a large part of their demand from agriculture. Further, Indian agriculture is still subject to uncontrollable risks, prime among which are the vagaries of the monsoon. A large part of crop insurance happens in the kharif season, which is critically monsoon-dependent. About 82% of total sum insured is for the kharif crop as are the 87% of the farmers who have so far benefited from crop insurance schemes. Nevertheless, in absolute terms, crop insurance’s role in agriculture is miniscule compared to agriculture’s significance to the country. The total insured crop area is only about 10% of the overall area under food grains. 
This suggests that not too much headway has been made in agriculture insurance since its initiation. The first nationwide crop insurance scheme, Comprehensive Crop Insurance Scheme (CCIS), which was launched in 1985-86 by the General Insurance Corporation (GIC), did not achieve much. Over the years of its operation, the CCIS insured a total of 1.1% of the agriculture GDP over the period. From 1999-2000, a new scheme — the National Agriculture Insurance Scheme (NAIS) — was launched in place of the CCIS, with a newly-formed Agriculture Insurance Company of India (AIC) as its implementing agency. This has fared slightly better than the CCIS, partly because of its scope. While the CCIS insured only those farmers who had taken short-term loans, the NAIS covers all farmers. The average yearly sum insured forms about 3% of income generated by agriculture in a year. Some of the bigger crop-producing states like Punjab, Haryana and Rajasthan did not participate in the insurance scheme.