Mumbai, Feb 27 (UNI) Weather Risk Management Services (WRMS) and ICICI Lombard General Insurance have launched one of its kind hybrid weather-cum-satellite imagery-based insurance concept in India for covering risk of farmers growing wheat crop in Patiala District of Punjab.
The Concept, once successfully proven, would significantly reduce the time required for estimating the yield of an area by carrying out crop cutting experiments. The procedure can also verify the accuracy of crop cutting experiments done to assess the yields, a release stated.
The concept can also be used for crop monitoring and predicting food grain production more accurately, which would tremendously benefit farmers to plan their sales on time and government to take necessary measures to avert any possible food grain shortages, according to the release.
Using the hybrid weather-cum-satellite imagery-based insurance, product yield would be determined on the basis of Normalised Difference Vegetation Index (NDVI) which is a simple numerical indicator derived from satellite or aerial images for assessing the crop health at any particular point of time.
Payouts in the weather-cum-satellite imagery insurance are made by comparing yield derived from the above mentioned factors with the normal yield. If the derived yield is less than pecified percentage of normal yield, farmer is compensated for the difference.
UNI AR GR AG1846