Rural Insurance

What is Rural Insurance?

Rural insurance covers the rural population from loss to cattle, crops, adverse farming conditions, etc. It is a specially designed policy to cater to the needs of Rural India. The amount of premium payable in case of rural insurance is usually subsidised and is available for tax exemption. 

Rural insurance ensures the families living in rural areas to have a safe and secure future, and ultimately enable them to lead a happy life. The insurance covers the risks related to various aspects of their life, and it's obtained at affordable premium rates with a quicker claim process.

Types Of Rural Insurance

Rural insurance has a wide range of plans that cover various sections as mentioned below:

Motor Insurance: This is comprehensive coverage crafted for agricultural vehicles like tractors, cars, scooters, trailers and motorcycles.

Property Insurance: This plan covers shops, home, retail outlets, schools and agricultural equipment.

Accident Insurance: This insurance covers accidental death, partial, or total disability of the insured.

Livestock Insurance: This insurance protects cattle against death or disability.

Health Insurance: This is personal accident insurance and Mediclaim for the insured.

Poultry Insurance: This plan protects broilers and parent stock of chicken.

What Rural Insurance Covers?

Since rural insurance relates to the lifestyle risks of people residing in rural villages, the insurance covers the following products:

• Hut insurance
• Poultry insurance
• Cycle rickshaw policy
• Sericulture insurance
• Honey bee insurance
• Failed- well insurance
• Sheep and goat insurance
• Lift irrigation insurance
• Farmers’ package insurance
• Agricultural pump-set policy
• Animal-driven cart insurance
• Gramin personal accident insurance
• Aqua-culture (prawn/ shrimp) insurance
• Horticulture/ plantation insurance scheme
• Animals such as elephants, rabbits, pigs, birds, zoo, and circus animals are included in rural insurance

How Rural Insurance Functions?

It’s vital to understand rural insurance and its functions to obtain the best deals:

• To know which type of insurance to opt for, you should first analyse your requirements and the losses associated with your assets. Analyzing will also help you in deciding the premium amount.
• After analyzing, it’s time to compare and check the various insurance companies and their plans.
• The insurer will always first check whether an applicant is residing in a rural area or not.
• After going through the property and livestock details, the premium’s cost is mutually decided and agreed between both the parties.
• Later on, whenever a risk occurs, the insured immediately informs the insurer company about it. Evidence of the event, along with the duly filled claim form and FIR Report shall be submitted by the insured.
• As the claim gets verified by the bank officials, if it’s authentic, it will be settled; if the claim is not authentic, then it will get rejected.

Companies Offering Rural Insurance in India

Here is a list of few companies in India that provide rural insurance, which has invented keeping in mind the various sections of rural India:

• TATA AIG
• Aviva India
• Cholamandalam
• Oriental Insurance
• IFFCO Tokio

Advantages of Buying Rural Insurance

Some benefits of opting for rural insurance are:

• Their plans are easy to understand
• It has a low premium which is affordable by the people, especially in rural areas
• The insurance can compensate for the monetary losses that are covered under its plan
• The insurance can enable rural people to become more independent

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