摘要：Risk is an integral part of agriculture. Agricultural producers face a series of risks affecting the income and welfare of their households. These are mainly production risks related to: weather conditions, pests and diseases, market conditions etc. To mitigate risk farmers had developed various strategies but these strategies are not that affective. Crop insurance protects farmers from financial losses that result from natural causes such as drought, excessive moisture, hail, wind, frost, insects and disease. Crop insurance is an institutional measure to manage risk efficiently. In India the performance of crop insurance is very poor and riddled with many problems. But there is lot of scope for improvement and making it an effective risk management tool.
