Weather Based Crop Insurance Scheme.

Weather Based Crop Insurance Scheme.

The world is ruled by human beings but human beings are ruled by nature. Even with the tremendous advancement of science and technologies in this modern era of globalization, still, we are unable to substitute the natural physical resources essential for agriculture. We can merely just anticipate upcoming weather hazards like excessive rainfall, frost, drought, flood, hail, etc. but can do literally nothing to save the crops or in turn, the farmers from huge economic loss.

Weather-based crop insurance aims to eliminate the hardship of the insured farmers against the likelihood of financial loss on account of anticipated crop loss resulting from the incidences of adverse weather conditions.

Crops covered under the scheme.

A vast range of crops starting from the food crops like cereals, millets, pulses, oilseed crops and all other commercial and horticultural crops are covered under this insurance scheme.

1.       Food crops (Cereals, Millets and pulses)

2.       Oilseeds

3.       Commercial/Horticultural crops\

Crop insurance

Eligibility criteria Farmers covered under the scheme.

All the farmers starting from sharecroppers and tenant farmers to farmers with large amounts of lands growing the mentioned crops in specifically notified areas are eligible for the insurance coverage. However, the scheme is optional for the farmers. They can choose between a weather-based crop insurance scheme (WBCIS) or Pradhan Mantri Fasal Bima Yojana (PMFBY).

The objective of the scheme.

Weather Based Crop Insurance Scheme aims to mitigate the hardships of the insured farmers against the likelihood of financial loss on account of anticipated crop loss resulting from adverse weather conditions. WBCIS uses weather parameters as “proxy” for crop yields in compensating the cultivators for deemed crop losses. Payout structures are developed to the extent of losses deemed to have been suffered using the weather triggers.

Weather Perils to be covered.

The following major weather hazards which are deemed to cause “Adverse Weather Incidence”, leading to crop loss, shall be covered under the scheme.

·         Rainfall – Deficit of rainfall, excess rainfall, unseasonal rainfall, rainy days, dry spell and dry days.

·         Relative humidity

·         Temperature – High temperature (heat) and excessive low temperature

·         Wind speed

·         A combination of the above

·         Hailstorms

·         Cloud bursts

The perils listed above are only indicative and not exhaustive. Any addition or deletion to this list can be made by insurance companies based on availability and geography of the concerned area.

Insurance Period.

The insurance period or the risk period ideally runs from the sowing period to the maturity of the crop. However, the risk period depending on the duration of the crop and weather parameters chosen could vary with individual crops and the particular area.

crop insurance

Description of the scheme.

Weather-based crop insurance scheme (WBCIS) operates on the concept of “Area Approach” which means, for the purpose of compensation, a “reference unit area” (RUA) shall be deemed as a homogenous unit of insurance. This RUA shall be notified before the initiation of the season by the state government. Each RUA is linked to a Reference Weather Station (RWS), on the basis of which, the claims would be processed. This area approach differs from individual approach because in this case, the area of the crops is insured whereas in the other case, assessment is made for every individual insured farmer who has suffered a loss. Weather-based crop insurance scheme (WBCIS) provides protection to the insured cultivators in the event of loss in crop yields resulting from the adverse weather incidences. However, it should be remembered that WBCIS does not provide insurance for crop failures or yield limitations.

At a glance –

Date of initiation – March 2016

Initiated by – Government of India, Department of Agriculture, Cooperation and Farmers’ Welfare

Ministry – Ministry of Agriculture and Farmers’ Welfare

Official website –

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Written by KrishiHub

Technology-driven Agricultural ecosystem for Indian farmers
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