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Outlines 2  Crop insurance  History of crop insurance  Types of crop insurance  Objectives of crop insurance  Steps of crop insurance process  Criteria for crop insurance  Company giving crop insurance  Scenario in Pakistan  Problem of agriculture  Factors hindering crop insurance  conclusion

Crop insurance 3 It refers to an insurance which insures farmers and crop producers against their loss of crops due to natural disasters, such as hail, drought, and floods.

History of crop insurance 4 In Pakistan Crop insurance is new and was launched in 2008 under a public private partnership for a national (in scope) crop loan insurance scheme.

Types of crop insurance 5  Yield Protection Insurance lt protects farms from various events. It typically safeguards against drought, excess moisture, hailstorms, floods, insects, diseases, freezes, wildlife and more.  Revenue Protection Insurance It is a combination of crop-yield insurance and price insurance. It covers the decline in price that occurs during the crop's growing season.  Yield Protection Insurance lt protects farms from various events. It typically safeguards against drought, excess moisture, hailstorms, floods, insects, diseases, freezes, wildlife and more.  Revenue Protection Insurance It is a combination of crop-yield insurance and price insurance. It covers the decline in price that occurs during the crop's growing season.

Objectives of crop insurance 6  To provide insurance coverage and financial support to the farmers in case of failure of crop.  To encourage the farmers to adopt progressive farming practices, high value in-puts and higher technology in Agriculture  To help stabilize farm incomes, particularly in disaster years  To provide insurance coverage and financial support to the farmers in case of failure of crop.  To encourage the farmers to adopt progressive farming practices, high value in-puts and higher technology in Agriculture  To help stabilize farm incomes, particularly in disaster years

Steps of crop insurance process 7

8  Identified crop losses up to 25% will not be claimed.  Losses from 25% – 50% will be compensated as 50% of the outstanding loan.  Losses >50% or yield loss up to 75% will be compensated as 100% of the outstanding loan.  Premium of subsistence farmers for five major crops i.e. Wheat, Cotton, Sugarcane, Rice and Maize will be reimbursed by the Government  Identified crop losses up to 25% will not be claimed.  Losses from 25% – 50% will be compensated as 50% of the outstanding loan.  Losses >50% or yield loss up to 75% will be compensated as 100% of the outstanding loan.  Premium of subsistence farmers for five major crops i.e. Wheat, Cotton, Sugarcane, Rice and Maize will be reimbursed by the Government

9 United insurance company (UIC) It was started in 1959 United Insurance has over 100 branches in every corner of Pakistan. It deals with the corporate sector, Business, Travel Insurance, logistics, Crops & Livestock Insurance. United insurance company (UIC) It was started in 1959 United Insurance has over 100 branches in every corner of Pakistan. It deals with the corporate sector, Business, Travel Insurance, logistics, Crops & Livestock Insurance.

Scenario in Pakistan from  Special Secretary Agriculture (Marketing) Punjab Ehsan Bhutta has started a scheme.Under this scheme,  100 per cent subsidy on Insurance Premium for land owners of up to 5 acres  50 per cent subsidy on Insurance Premium for land owners from 5 acres to 25 acres would be given.  Special Secretary Agriculture (Marketing) Punjab Ehsan Bhutta has started a scheme.Under this scheme,  100 per cent subsidy on Insurance Premium for land owners of up to 5 acres  50 per cent subsidy on Insurance Premium for land owners from 5 acres to 25 acres would be given.  this scheme will also be applicable for districts Gujranwala, Multan and Faisalabad and wheat crop would also be included for insurance.

Crop insurance scheme for Pak farmers  This scheme was launched by bank of punjab.  Chief minister chaudhry pervaiz elahi said that;  under the new agriculture insurance scheme farmers will get crop insurance.  To avail this the bank would charge additional 2% of the loan, on the top of 8% mark-up rate on the loan.  He observed that the decline in the mark-up rate on agri loan has been reduced from 14% to 8%.  This scheme was launched by bank of punjab.  Chief minister chaudhry pervaiz elahi said that;  under the new agriculture insurance scheme farmers will get crop insurance.  To avail this the bank would charge additional 2% of the loan, on the top of 8% mark-up rate on the loan.  He observed that the decline in the mark-up rate on agri loan has been reduced from 14% to 8% acres of land would be compensated 50 to 70 percent of the crop value in the eventuality of crop loss caused by natural calamity while their entire loan would be covered

12 continue---- "The insurance scheme, first of its kind in the country, would benefit 98 percent of farmers, especially the poor ones. BoP Managing Director Hamesh Khan said that the State Bank of Pakistan (SBP) had permitted them to open 10 more branches of which five would be opened in Punjab within a few months. He also added that "In consultation with the tobacco growers, they were planning to open a branch in Mardan to facilitate tobacco farmers". continue---- "The insurance scheme, first of its kind in the country, would benefit 98 percent of farmers, especially the poor ones. BoP Managing Director Hamesh Khan said that the State Bank of Pakistan (SBP) had permitted them to open 10 more branches of which five would be opened in Punjab within a few months. He also added that "In consultation with the tobacco growers, they were planning to open a branch in Mardan to facilitate tobacco farmers".

Problem of agriculture 13 Absence of organized crop insurance policy. In case of any loss due to heavy insect attack, disease outbreak, floods etc there is no insurance plan for the small land holders. the farmers suffers due to these losses and ultimately agriculture suffer Absence of organized crop insurance policy. In case of any loss due to heavy insect attack, disease outbreak, floods etc there is no insurance plan for the small land holders. the farmers suffers due to these losses and ultimately agriculture suffer

14 Crop insurance premium Dissatisfaction with crop loan insurance scheme Lacking of knowledge of crop insurance Believing of process being against Islamic rules Time taking process. Crop insurance premium Dissatisfaction with crop loan insurance scheme Lacking of knowledge of crop insurance Believing of process being against Islamic rules Time taking process.

15 Success of crop insurance scheme cannot be achieved in isolation; it depends on the reforms and improvements in the whole system. It is an important way to protect small farmers from harm. An effective crop insurance scheme may provide essential elements for agricultural development. By reducing risks crop insurance can make small farmers to be willing to try new technologies. Also in case of crop failure any time, the protection provided by crop insurance payment serves to shorten time that rakes to recover from a bad year.

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REFERENCES Pakistan.com.news