The Indian Crop Insurance Puzzle: A Discourse from Behavioral Science Perspective

Crop insurance is an important policy instrument to shield farmers from risks in farming and it is even more important in the present context, when the climate change led crop losses are on the rise. Unfortunately, only 28% of the gross cropped area in India is under insurance coverage despite of hi...

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Bibliographic Details
Published inNational Academy science letters Vol. 44; no. 4; pp. 377 - 382
Main Authors Korekallu Srinivasa, Aditya, Thiyaharajan, Muthuprasad, Surendran Padmaja, Subash, Jha, Girish K.
Format Journal Article
LanguageEnglish
Published New Delhi Springer India 01.08.2021
Springer Nature B.V
Subjects
Climate change
Crop insurance
Crops
History of Science
Humanities and Social Sciences
Insurance
multidisciplinary
News/Views and Comments
Science
Science (multidisciplinary)
Crop insurance
Regret theory
PMFBY
Behavioral sciences
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Summary:Crop insurance is an important policy instrument to shield farmers from risks in farming and it is even more important in the present context, when the climate change led crop losses are on the rise. Unfortunately, only 28% of the gross cropped area in India is under insurance coverage despite of highly subsidized insurance package under the flagship program of Pradhan Mantri Fasal Bima Yojana . In this paper, we examine few behavioral insights which explain the low adoption of insurance product. We also discuss few behaviorally smart policies options to increase the adoption of crop insurance.
ISSN:0250-541X
2250-1754
DOI:10.1007/s40009-021-01055-w