Farmers Perception and Awareness about Crop Insurance in Karnataka

S.B. Goudappa, B. S. Reddy and S.M. Chandrashekhar


The study on farmers perception and awareness of crop insurance was conducted in North Eastern parts of Karnataka because region receives very less rainfall compared to other part of Karnataka and people of this region always suffering from drought, they continue to suffer. The study revealed that average size of family among borrowers and non borrowers was seven. Most of them (44%) are illiterate and 25% were education up to primary level. Level of education, family size and experience in farming did not show any significant difference between among the district selected for study. However, farm size and crop income, which generally corresponds to farm size, were significantly higher in Gulbarga district compared to Koppal and Raichur districts. Though NAIS crop insurance scheme is operating since 2002-03 in the study area majority of respondent (>80%) are not aware that who is implementing agency and who pay’s compensation. Almost all respondents are in the wrong perception that banks will pay compensation and are the implementing agency. More than three fourth of the insurance beneficiaries mentioned that bank compulsion was the motivation for opting insurance. Financial security, good experience from others was the region for opting crop insurance. Further more than 80% of respondents are not aware of extent of coverage premium paid, last date, procedure for insuring crops and method of loss determination and compensation worked out by agriculture insurance company. Respondent farmers were suggested for improving existing scheme and they want quick settlement of claims which is usually taking more than one year. Around three fourth of the beneficiaries suggested to consider adverse weather condition prevailed during flowering and pod formation stage. National Agriculture Insurance Scheme (NAIS) in operation needs to be continued with modification and simplification of modalities of indemnity, loss assessment, settlement of compensation and disbursement procedure.

Keyword: Farmers Perception; Crop Insurance.

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