Evaluation of Crop Insurance Product in Karnataka
Project Overview
The enterprise of agriculture is subject to a great many uncertainties. These include climate and weather risks, natural catastrophes pest and diseases, which cause highly variable production outcomes. Production risks are exacerbated by price risks, credit risks, technological risks and institutional risks. Risk management in agriculture ranges from informal mechanism like avoidance of highly risky crops, diversification across crops and across income sources to formal mechanisms like agriculture insurance, minimum support price system and future’s markets. Crop insurance is purchased by agricultural producers, including farmers, ranchers and others to protect themselves against either the loss of their crops due to natural disasters, such as hail, drought, and floods, or the loss of revenue due to declines in the prices of agricultural commodities.

The intervention by GIZ- Rural Insurance Services Programme (RISP) with AICI aims to develop two new insurance product known as WBCIS-plus which will be well accepted and used by the stakeholders (in this case farmers). The intervention evaluates the basic situation and sets achievable targets. The intervention consists of the insurance education programme and the product. Products offered to farmers in the ongoing pilot project in Karnataka have been designed post multiple consultations with farmers. In addition to this process all farmers enrolling for the insurance product have undergone detailed training on crop insurance using audio visual modules on all relevant aspects ranging from understanding risk and insurance, to the operational processes involved in the above mentioned products. Under these circumstances and given that these products effectively reflect the risk management needs of the community it is assumed that these products meet the satisfaction criteria’s of insured farmers. The purpose of this evaluation was to thus measure the impact of the insurance package on the risk management practices and economic participation of agricultural households in Karnataka.

Evaluation of Integrated Risk Management Projects, Gujarat, Maharashtra and Andhra Pradesh/Telangana
Project Overview
Agriculture plays a vital role in the Indian economy. Over 70 per cent of the rural households depend on agriculture as their principal means of livelihood. However, agriculture is a risky venture. These include climate and weather risks, natural catastrophes pest and diseases, which cause highly variable production outcomes. Production risks are exacerbated by price risks, credit risks, technological risks and institutional risks. Risk is higher at individual level than at collective level. This intervention trains the farmer’s producer organizations to optimize risk management strategies which includes adoption of sustainable agriculture practices, integration of farmers into value chains, and access of farmers to customize finance and insurance. Risk management in agriculture ranges from informal mechanism like avoidance of highly risky crops, diversification across crops and across income sources to formal mechanisms like agriculture insurance, minimum support price system and future’s markets. But appropriate insurance scheme for specific condition and need and knowledge on the insurance is crucial for realizing benefit from insurance. Moreover, integration with market and establishment of supply chain management is necessary to get value of agricultural products.

The objective of the assignment was to assess the results of the RISP Integrated Risk Management Projects in Gujarat, Maharashtra and Telangana based on five evaluation criteria (relevance, effectiveness, impact, efficiency, sustainability).