Assessing the Socio-economic Impact of Crop Insurance Scheme: A Study of Insured and Non-insured Farmers in Haryana

Description

Page: 328-331

Vandana Sheoran and Rohtas Kait (Department of Economics, Chaudhary Devi Lal University, Sirsa, Haryana)

Insurance agencies should prioritize customer satisfaction, timely indemnity payments, and simplified documentation processes to ease the adoption process. The study objective was to examine how socio-economic characteristics influence the differentiation between insured and non-insured farmers. By addressing these socio-economic factors, the agricultural sector can see increased uptake of crop insurance, benefiting both farmers and insurance providers. Discriminant Analysis was used as the statistical tool to identify the key socio-economic factors influencing farmers’ decisions to adopt crop insurance. The results of the analysis revealed that certain factors positively influenced the adoption of crop insurance. These included higher educational levels, increased awareness about crop insurance and higher satisfaction with the insurance schemes, greater farming experience, and greater social participation. Conversely, factors such as older age, lower annual family income, larger family size, and belonging to certain castes had a negative impact on the adoption of crop insurance. The study highlights the significance of socio-economic characteristics in shaping farmers’ decisions regarding crop insurance adoption. To encourage greater adoption, it is essential to focus on creating awareness and enhancing satisfaction among farmers about the benefits of crop insurance. Additionally, promoting farming experience and social involvement can positively influence farmers’ motivation to insure their crops. In conclusion, the study emphasizes the importance of improving awareness and satisfaction levels among farmers to drive higher adoption rates of crop insurance schemes.