India’s vast agricultural sector, which employs over 50% of the workforce and accounts for 18% of GDP, is intrinsically prone to risks from unpredictable weather, market volatilities, and rising input costs. Crop insurance is thus an imperative financial cushion for farmers against income shocks caused by circumstances beyond one’s control.
- Agriculture a high-risk sector, vulnerable to climate change, market fluctuations
- Crop insurance critical for protecting farmers’ income
- Prior schemes limited in reach and risk coverage
Evolution of Crop Insurance in India
Crop insurance in India has witnessed major expansions over the past decades but requires improved efficiency. Initiated in 1985, crop insurance was made compulsory for farmers taking agricultural loans in 2016 under the Pradhan Mantri Fasal Bima Yojana (PMFBY) scheme. With premium subsidies, this flagship scheme has extended coverage to over 5.5 crore farmers.
- Launched in 1985, made compulsory for farmers taking agricultural loans in 2016
- Pradhan Mantri Fasal Bima Yojana (PMFBY) currently the largest scheme
- Covers over 5.5 crore farmers, but gaps persist in awareness, assessment processes
Launch of SARTHI Portal
The SARTHI portal was launched to create an integrated nation-wide platform that could transform agricultural insurance by making enrolment easy via online channels and mobile apps, enabling technology-led remote loss assessments for faster payouts, maintaining accessibility through multilingual helplines, and driving innovation in insurance products for comprehensive risk management.
- Unified digital platform for agricultural insurance launched in 2021
- Developed by UNDP India and implemented across 13 states
- Provides information, sells insurance products, assists claims assessment
- Supports multiple crop and non-crop insurance schemes
Key Features of the SARTHI Portal
- Links farmers, insurers, banks, agencies on single platform
- Products across yield, weather, income protection, assets
- Tech-enabled remote loss assessments
- Multilingual helplines for grievance redressal
Benefits to Stakeholders
Farmers
- Easier enrollment through online/mobile app access
- Transparent loss assessment processes
- Speedier claim settlements
Insurers and Banks
- Improved data analytics for precise risk assessment
- Reduced delays in loss assessments
- Lower disputes due to transparent processes
Governments
- Enhanced real-time monitoring and supervision
- Integrated dashboard for tracking adoption metrics
- Streamlined coordination across states and agencies
SARTHI Products and Coverage
SARTHI’s portfolio aims to drive speedy adoption of technology-backed insurance to aid risk management. Its products can be customized across various districts, sub-schemes and sections of the farming community based on vulnerability. The scope and flexibility hold potential to significantly advance insurance penetration.
- Weather index and area yield index insurance
- Innovative models like drone/satellite data usage
- Scaled across states – Rajasthan, Madhya Pradesh show high penetration
Operational Progress and Impact
Initial metrics showcase the portal’s ability to minimize delays through remote sensing-based loss assessments and swift settlements directly into bank accounts. Monitoring operational gains across enrolment, premiums collected, claims processed, customer complaints handled and farmer feedback would be key to assess gaps. Evaluating real field experiences would shape ongoing refinements.
- 2.5 lakh farmers bought insurance in 2021 Kharif season alone
- Over 50K weather-based crop loss assessments using portal during 2021 cyclones
- 80% claims paid within 10 days through tech-enabled processes
Challenges and Future Roadmap
As SARTHI aims to consolidate India’s agricultural insurance, learnings must inform strategies for adding on-ground assessment capabilities, enabling micro-insurance and supporting agri-enterprises. Its future roadmap must focus on creative problem solving and agile systems refinement with farmer-centricity at the core to fulfill the mission of securing farmer incomes while catalyzing transformation.
- Low farmer awareness still a bottleneck
- Need process standardization across states
- Coverage expansion to horticulture, micro insurance planned
With integrated data, transparent mechanisms, and prompt pay-outs, SARTHI aims to make farm insurance more reliable and accessible – insulating India’s food growers against risks beyond their control while powering the agricultural economy.
