Streamlining Crop Insurance with Subsidised Premiums and Effortless Settlements

Agriculture is the primary source and support of many rural communities. By safeguarding farmers’ income and livelihoods, crop insurance supports rural development and improves the overall standard of living in village areas. Indemnity settlements are essential for mitigating financial risks and encouraging risk-balancing behaviours. However, the execution of crop insurance in India is needed, and it faces challenges such as low awareness, eligibility issues and inefficiencies in the settlement process. To address these challenges, technological solutions are proposed, such as core banking solutions, public–private partnerships, insurance based on meteorological indices, geographic information system technology and blockchain technology. This study focuses on the effects of premium payments and indemnity settlement on farmers’ enrolment in crop insurance and the need for technological developments to enhance schemes. The article referred to secondary data, through a comprehensive literature review the researcher analysed the implemented schemes and farmers’ enrolment. The study used Pradhan Mantri Fasal Bima Yojana and Weather-Based Crop Insurance Scheme website data from 2018 to 2022 for analysis. Only 31.6 per cent of enrolled farmers benefited from crop insurance during the last 4 years, and many loanee farmers are participating in crop insurance. The study suggests that government-supporting agencies and insurance companies should explore ways to make premium payments more affordable and flexible for farmers. Agents’ efforts should be made to increase awareness among farmers through training programmes and digital campaigns.