Tree Insurance in India: Status, Challenges, and Policy Options for Agricultural Coverage

The tree that acts as insurance against major agricultural crop losses is vulnerable to climate extreme events.The increase in climate extremes in various states in India necessitates risk reduction through tree insurance.This article fathoms multiple aspects of tree insurance at the international and national level through a literature review.A heterogeneity in the degree of risk covered, sum insured, premium, indemnity, and valuation methods at global and country levels was observed.Challenges like high premiums, claim settlement procedures, and lack of awareness hinder insurance penetration.Developing customized insurance products, leveraging technology, implementing revenue insurance, and adopting a multifaceted research approach suggested to overcome the challenges and for the growth of tree insurance.