THE HIDDEN MYSTERY BEHIND CROP INSURANCE IN PAKISTAN

 

Crop insurance is a crucial risk management tool that protects farmers against crop losses caused by natural disasters. In Pakistan, where agriculture is a significant contributor to the economy, crop insurance plays a vital role in mitigating financial losses incurred by farmers. However, the uptake of crop insurance in Pakistan is relatively low due to various reasons, including a lack of awareness and a cumbersome insurance application process. This article also explores the details of crop insurance in Pakistan and discovers the measures taken to promote its uptake.

Many companies in Pakistan provide top-notch crop insurance services but United Insurance Company of Pakistan Limited will provide you with the best crop insurance services at the most affordable rates.

Now let's have look in the depth of crop insurance: 

Crop Insurance in Pakistan

Crop insurance in Pakistan is a relatively new concept, with the first program launched in 1980. Despite the existence of multiple insurance schemes, less than 1% of farmers in Pakistan have crop insurance, according to a study conducted by the Pakistan Institute of Development Economics (PIDE). One of the primary reasons for the low uptake of crop insurance is the lack of awareness among farmers about the benefits of crop insurance and the cumbersome process of obtaining insurance coverage.

Agriculture Insurance in Pakistan

In addition to crop insurance, agriculture insurance in Pakistan includes livestock, poultry, and fisheries insurance. The State Bank of Pakistan (SBP) regulates agriculture insurance schemes in Pakistan, with multiple public and private insurers offering crop insurance. The SBP has set up an Agriculture Credit Advisory Committee (ACAC) to provide policy guidance and regulatory oversight on agriculture insurance in Pakistan

Crop Insurance in Punjab

The Punjab government launched the Crop Insurance Scheme in 2018 to provide insurance coverage to small and marginal farmers in the province. The scheme covers a wide range of crops, including wheat, rice, sugarcane, and cotton. To promote the uptake of crop insurance among farmers, the Punjab government has taken several measures, including providing subsidies on premiums to small farmers, simplifying the insurance application process, and increasing the number of insurance agents. Additionally, the government has also launched an awareness campaign to educate farmers about the benefits of crop insurance and the procedures involved in obtaining insurance coverage.

Benefits of Crop Insurance

• 1.      Crop insurance provides a safety net for farmers, especially small farmers, who are most vulnerable to crop losses.
• 2.      Farmers can recover their losses and continue their agricultural activities without having financial difficulties.
• 3.      Crop insurance also helps in reducing the financial burden on the government in the event of natural disasters, as insurance companies bear a significant portion of the loss.

Conclusion

Crop insurance is a crucial risk management tool for farmers in Pakistan, where agriculture is a vital source of livelihood for millions of people. Despite the low uptake of crop insurance, the government has taken several measures to promote its uptake, including subsidies, simplified application processes, and awareness campaigns. By increasing the uptake of crop insurance, farmers can protect themselves against crop losses caused by natural disasters, ensuring the sustainability of their agricultural activities.

For more information on the latest trends related to crop insurance, please check the United Insurance Company of Pakistan limited cop insurance guide. 

if you want to buy crop insurance online then click here: https://online.theunitedinsurance.com/