Mumbai: ICICI Lombard General Insurance, in association with Weather Risk Management Services (WRMS), has unveiled a hybrid weather-cum-satellite imagery-based insurance product in India to cover the risk of farmers growing wheat in the Patiala district of Punjab. Although weather-based crop insurance covers are available, ICICI Lombard''s product is single as it uses satellite-based imagery to assess crop yields. The product, if successful, is likely to considerably decrease the time needed for estimating the yield of an area by carrying out crop-cutting experiments. Using the insurance product, yield will be determined on the basis of a Normalised Difference Vegetation Index (NDVI), which is a simple numerical indicator derived from satellite or aerial images for assessing the crop health at any particular point of time. This data will be increased by using four other parameters, namely, soil, moisture data from satellite images, temperature and rainfall data from ground weather observatory stations.
Compare this to crop-cutting experiments for calculating actual yield estimation, wherein a simple multiple-peril crop insurance product''s actual yields of an area are benchmarked to average yields of the last 3 to 5 years. The actual yield estimation of an area is done by carrying out a specified number of crop-cutting experiment In the present National Agriculture Insurance Scheme (NAIS), although Agriculture Insurance Company of India decides the claim amount, the process is managed by the Union government and takes more than a year for the farmer to get the claim amount. With the use of the hybrid weather-cum-satellite imagery, claims can be settled within 30 days.
Compare this to crop-cutting experiments for calculating actual yield estimation, wherein a simple multiple-peril crop insurance product''s actual yields of an area are benchmarked to average yields of the last 3 to 5 years. The actual yield estimation of an area is done by carrying out a specified number of crop-cutting experiment In the present National Agriculture Insurance Scheme (NAIS), although Agriculture Insurance Company of India decides the claim amount, the process is managed by the Union government and takes more than a year for the farmer to get the claim amount. With the use of the hybrid weather-cum-satellite imagery, claims can be settled within 30 days.
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