Farmers’ Opinion on Cost and Benefit of Agriculture Insurance

Agriculture development is an index of country’s progress because the development of all other sectors depends upon the development of agriculture sector. But, the development of agriculture is affected by natural disasters. Agriculture insurance is an only protective mechanism against the perils present in agriculture. It largely solves the problem of farmers and largely in the hands of farmers. The subscription and success of agriculture insurance is determined by its cost and benefit. If the farmers have positive opinion on cost and benefit of agriculture insurance they will come forward to subscribe and stabilize their wealth and sustain the economic growth of nation by agriculture. This phenomenon, induce the researchers to stumble upon the solution to assess the opinion of farmers on cost and benefit of agriculture insurance and to test the significant difference in the farmers’ opinion on cost and benefit of agriculture insurance. The primary data collected from 600 farmers availing agriculture insurance within Tirunelveli District in the Indian State of Tamil Nadu to make an in-depth study to address the above issues. The respondents were selected by adopting stratified random sampling technique. The collected data were analyzed by applying Percentage Analysis and Sign test. The study revealed that green insurance is a beneficial plan to the farmers to face the negative income shock at reasonable premium. The majority of the respondents felt that agriculture insurance has covered 0-50% risk. Sign Test proved that there is a significant difference in the opinion of farmers on the cost and benefits of agriculture insurance. Technological adoption in the estimation of loss of crop yield, prompt settlement of claims and additional perils at additional premium are suggested mission to enhance the vision of the farmers on cost and benefits of agriculture insurance. Besides, it helps the farmers to lead a peaceful life and induce them to contribute more towards sustainable agriculture development of the country.