Money & Banking

Seminar to focus on weather index insurance

Our Bureau Hyderabad | Updated on January 27, 2011




Internationally, index-based weather risk insurance contracts in agriculture have emerged as an important risk mitigation tool, and is being considered as an alternative to the traditional yield-based insurance.

In India, piloted by the AIC (Agriculture Insurance Company) in Karnataka, the Weather-Based Crop Insurance Scheme (WBCIS) is being implemented in select regions for specific crops by both the public and private sector insurers. Among the several advantages of the weather index products are faster indemnity payouts, reduction of administrative costs, transparent functioning, minimisation of adverse selection, greater incentive to the insured to save the crop, etc.

However, there is widespread lack of awareness about weather insurance among the end-users; more importantly, clarity eludes even the insurers.

Seminar

To deliberate the issues, a two-day national seminar on ‘Weather Insurance: Addressing Risk Mitigation Needs of Weather-Sensitive Industries in India' is being organised by the Administrative Staff College of India (ASCI) here beginning tomorrow.

The National Bank for Agricultural & Rural Development (NABARD), Agriculture Insurance Company of India Ltd (AIC) and State Bank of Hyderabad (SBH) are the co-sponsors. The event will provide a platform for policy-makers, insurers, bankers, weather risk researchers and experts to comprehensively evaluate the experience of weather index insurance in India and explore strategies, according to a ASCI press release.

Prof Abhijit Sen, Member, Planning Commission, will inaugurate the seminar and deliver the keynote address.



Published on January 27, 2011

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