Is weather based crop insurance useful and how does it work?

Weather based crop insurance pays out when measured weather like rainfall, temperature or humidity crosses set limits, rather than waiting for a full field by field loss survey, so settlement can be faster for weather triggered losses. It is useful in areas with erratic monsoon, drought, excess rain, heatwave or cold, because the payout is linked to data from reference weather stations against a fixed term sheet for each crop and block. Premium for farmers is subsidised and a low share of the sum insured, with the rest borne by government. To benefit, enrol within the cut off date for the season, choose the notified crop for your area, and keep your land and bank records ready. Confirm the current crop, deadlines and term sheet with your bank, CSC or agriculture department before each season.