INDIA ACCELERATES RURAL INSURANCE SCHEME FOLLOWING UN REPORT

The chief minister of Indian state Kerala, V S Aschutanandan, has officially launched an insurance scheme for small scale farmers in the region. The Kisan Shree Insurance plan, which was first announced back in February, will provide cover for the families of farmers that suffer from serious illnesses, disability or fatal accidents. The insurer involved is United India Insurance and the scheme so far counts 520,000 farmers as members. The Indian government is also planning to launch an insurance policy especially for farmers over 60 years of age as well as a farmer relief fund. India’s agricultural sector has been hit by the summer rains of 2007 which decimated the paddy crop and led to a relief fund of 10,000 rupees per hectare for farmers hit by the rains. The launch of the farming insurance scheme follows the recent publication of an annual report into social security by the United Nations’ Economic and Social Commission for Asia Pacific (Escap). The report, unveiled by UN under secretary general Noeleen Heyzer, talks of the need for India to reinvest in the agricultural sector via greater crop insurance in order to sustain India’s current high growth rate.